HomeMy WebLinkAboutPR 15194: SAVANAH HOUSING CONTRACTMemo
To: Steve Fitzgibbons, City Manager
From: Col%en Russel% Director of Planning & Community Deve%pment
Date: Thursday, April 2, 2009
Re: P. R. 15.194
RECOMMENDATION:
I recommend the City Council adopt Proposed Resolution 15194, authorizing the execution of a
contract between the City of Port Arthur and Savannah Housing Corporation in the amount of
$200,000 for site preparation, new construction and up to $40,000 for down payment and
closing costs assistance to develop two (2) new affordable homes for low and moderate income
persons/families.
BACKGROUND:
The City of Port Arthur has obligated itself to fulfill) the statutory Federal HOME requirement of
allocating a minimum of fifteen percent (15%) of its annual HOME Program funds for eligible
CHDO Set-aside activities.
Savannah Housing Corporation is a chartered Texas non-profit corporation. The Mayor & City
Cauncil of Port Arthur herE:by certifies and designates Savannah Housing Corporation as a
Cammunity Housing Development Organization (CHDO) in accordance with 24 CFR 92.300.
Savannah Housing Corporation will use a minimum of 15% CHDO Set-aside Federal HOME
Program funds to assist in carrying out the mission of the City of Port Arthur Housing Assistance
Programs to eliminate blight, provide decent, safE~, sanitary and affordable housing for low and
moderate-income persons,/families within the City.
The City of Port Arthur shall provide two (2) lots t:o Savannah Housing Corporation. Savannah
Housing Corporation will perform site preparation and construct two (2) new homes for low and
moderate income persons,/families in the next twf~lve months.
As much as 50% to 80% of the new construction homes shall be Energy STAR qualified homes
in accordance with the Leadership in Energy & Environmental Design (LEEDS), Green Building
System.
Savannah Housing Corporation will work closely with the Tejano Center to insure qualified
buyers are aware of and have access to new homes constructed in the City by Savannah
Housing Corporation.
The Tejano Center will facilitate the First Time Homebuyer Program which will include
homebuyer orientation and education classes, credit and budget workshops, one on one
counseling, pre-purchase and post-purchase counseling.
Down payment and closing costs assistance of up to $20,000 per location, (up to $17,000 to
assist with down payment and $3,000 to assist with closing costs), shall be provided by the City
of Port Arthur, based on actual need and shall noi: to exceed a total amount of $40,000.
Savannah Housing Corporation has obligated itself to provide an additional $5,000 per location
to assist with closing costs, not to exceed a total amount of $10,000.
BUDGETARY/FISCAL EFFECT: Funding will bE~ provided by the Federal HOME Program
CHDO Set-aside funds, acc;ount number 108-2141.-626.59-00, project numbers HE0401 &
HE0501.
STAFFING/EMPLOYEE EFFECT: Community Development Division staff will be responsible
for administering the contract with Savannah Housing Corporation.
SUMMARY: I recommend the City Council adopt; Proposed Resolution 15194, authorizing the
execution of a contract between the City of Port Arthur and Savannah Housing Corporation in
the amount of $200,000 for site preparation, construction and up to $40,000 for down payment
and closing costs assistance.
P. R. 15194
04/03/09 CR/Community Development
RESOLUTION NUMBER:
A RESOLUTION AUTHORIZING THE: EXECUTION OF A
CONTRACT BETWEEN SAVANNAH HOUSING CORPORATION
AND THE CITY OF PORT ARTHUR IN THE AMOUNT OF
$200,000 FOR SITE PREPARATION, NEW CONSTRUCTION
AND UP TO $40,000 FOR DOWN PAYMENT AND CLOSING
COSTS ASSISTANCE TO CONSTRUCT TWO (2) NEW HOMES
FOR LOW TC) MODERATE INCOME PERSONS/FAMILIES IN
THE CITY.
WHEREAS, Savannah Housing Corporation was chartered as a Texas non-profit
corporation to provide safE:, decent, sanitary and affordable housing to the low and moderate
income families; and,
WHEREAS, the Department of Housing and Urban Development awards Federal
HOME Program funds to the City annually, pursuant to the Housing and Development Act of
1974 for the primary benefit of low and moderate income persons/families; and,
WHEREAS, the City Council, by its adoption of Resolution Number 05-106,
(authorizing submission of a 2005 Consolidated Pllan) the City has obligated itself to provide
direct financial assistance 'For homeownership to low and moderate income persons/families;
and,
WHEREAS, under the terms of the grant, the City is to review the requests for the
disbursement of funds to the Savannah Housing (:orporation in the amount of $200,000 for site
preparation and new construction and up to $40,000 for down payment and closing costs
assistance; and,
WHEREAS, activities undertaken by the Savannah Housing Corporation must
principally benefit low and moderate income persons/families as has been determined by the
parties and is established under the guidelines of the Housing and Community Development Act
of 1974, as amended; therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR:
THAT the City Manager is authorized to execute a contract with Savannah Housing
Corporation, Inc., in the amount of $200,000 for site preparation and new construction and up
to $40,000 for down payrr~ent and closing costs assistance as outlined herein and further
described in the attached contract marked Attachment 1; and,
THAT a copy of the caption of this Resolution be spread upon the minutes of the
City Council.
READ, ADOPTED AND APPROVED this day of
__ A. D., 2009 at a
Arthur, Texas by the follo~nring vote: AYES:
CC-UNCILMEMBERS
NOES:
Regular Meeting of the City Council of the City of Port
MAYOR
M/aYOR
ATTEST:
CITY SECRETARY
APPROVED FOR AVAILABILITY OF
FUNDS: /
~~~^.~~ a~c~ C-~~~
DIRECTOR OF FINANCE
APPROVED FOR FORM:
~ off,, ~
CITY ATTORNE 9~h bel~~P~c.F ~F)
APPROVED FOR ADMINISTRATION:
CI~rY MANAGER
.~~
~'~
~~
~_ ~ _
COLLEEN RU SELL, D RECTOR
PLANNING & COMMUNITY DEVELOPMENT
ATTACHMENT ONE
CITY OF PORT ARTHUR
CONTRACT FOR A
COMMUNITY HOUSING DEVELOPMENT ORGANIZATION
STATE OF TEXAS §
COUNTY OF JEFFERSON §
SECTION 1. PARTIES TO THE CONTRACT
This contract a.nd agreement is macie and entered into by and
between the City of Port Arthur, Texas (hereinafter called the
"City") acting herein by its Mayox- and City Manager, duly
authorized by Resolution of the City Council of the City of Port
Arthur and the ;3avannah Housing Corporation, (hereinafter called
"CHDO") Jefferson County, Texas. The parties hereto agree, by
the execution hereof, that they ax-e bound to the mutual
obligations and t.o the performance and accomplishment of the
tasks described herein.
WITNESSETH THAT':
WHEREAS, the CHDO operates as a Texas non-profit
corporation that is organized to assist low income individuals
and families achieve the American dream of Homeownership; and,
WHEREA;3, the Department of Housing and Urban
Development annually award HOME Program funding to the City,
pursuant. to the Housing and Development Act of 1974, as amended
(hereinafter called the "grant"); and,
WHEREA:3, under the term; of the grant the City must
ensure that all.<~pplicable state and federal requirements are met
concerning the disbursement of funds to the CHDO; and,
WHERE;At3, projects undert=aken by the CHDO pursuant to
this contract must principally be of direct benefit to low and
moderate income persons as has beE~n determined by the parties and
is established under the guidelines of the Housing and Community
Development Act of 1974, as amended;
Now, Therefore, The Parties hereto do mutually agree as
follows:
SECTION 2. CONTRACT PERIOD
This contract a.nd agreement shall commence on April 8, 2009 and
shall terminate on April 7, 2010, unless otherwise specifically
provided by the terms of this contract .
SECTION 3. CHDO'S PERFORDRANCE
The CHDG shall acquire land, perform site clearance and construct
two (2) new homer with projected :~al.es prices of $95,000 to
$100,000 and hou:~e plans of 1200 ;~q. ft. to 1400 sq. ft. in the
next twelve (12) months for low and moderate income
persons/families. The homebuyer will be required to participate
in a First Time Homebuyer Program and maintain the property as
their primary Y~esidence for the applicable period of
affordability, oar the City will recapture a prorated sum of the
funds invested. The First Time Homebuyer Program includes
homebuyer orientation and education classes, credit and budget
workshops, one on one counseling, pre-purchase and post-purchase
counseling. Savannah Housing Corporation will work closely with
the Tejano Center to qualify buyers and insure that they are
aware of: and have access to new homes constructed in the City by
Savannah Housing Corporation. In addition to the land
acquisition, site clearance and site development subsidy expenses
in the amount of $200,000 being provided as delineated in Exhibit
"B" from Federal HOME Program funds.
As much as 50o to 800 of the new construction homes should be
Energy STAR qualified homes in accordance with the Leadership in
Energy & Environmental Design (LEEDS), Green Building System.
T'he City of PoY-t Arthur shall provide down payment and closing
costs assistance in the amount noi~ to exceed up to $20,000 per
home, far a total amount of $40,000.
The CHDU shall perform all activii~ies in accordance with the
terms of. the Performance Statement, hereinafter called Exhibit A;
the Budget, hereinafter called Exhibit B; the Project
Implementation S~~hedule, hereinafl~er called Exhibit C; the
Applicable Laws and Regulations, ]zereinafter called Exhibit D;
t:he Certifications, hereinafter called Exhibit E; the assurances,
certifications, and all other statements made by the CHDO in its
application for t:he project funded under this contract; and with
all other terms, provisions, and requirements set forth in this
contract. It shall be CHDO's responsibility to furnish its own
accounting services including clerical, statistical and
bookkeeping for Expenditures made by CHDO in performance of the
obligations herein.
SECTION 4.
CITY' S OBLIGA'T'IONS
A. Measure of Liabilit
In consideration of full and satisfactory performance of the
activities referred to in Section 3 of this contract, City shall
be liable for actual and reasonable costs incurred by the CHDO
during the contxact period for performances rendered under this
contract by CHDO, subject to the 1_imitations set forth in this
Section 4.
1. It is expressly understood and agreed by the parties
hereto that Cit.y's obligations under this Section 4 are
contingent upon the actual receipt: of adequate federal funds to
meet C.it.y's liabilities under thi:~ contract. If adequate funds
are not availa~>les to make payment~~ under this contract, City
shall notify CHDO in writing with~.n a reasonable time after such
fact is determi.nE=_d. City shall tYien terminate this contract and
will not. be liable for failure to make payments to CHDO under
this contract.
2. City shall not be liablE~ to CHDO for any costs incurred
by CHDO, or any portion thereof, which has been paid to CHDO or
is subject to payment to CHDO, or has been reimbursed to CHDO or
is subject to Y~e:imbursement to CHDO by any source other than City
or CHDO.
3. City shall not be liable to CHDO for any costs incurred
by CHDO or for any performances rendered by CHDO which are not
a.llowabl_e costs <~s set forth in Suction 6 of this contract. City
assumes no responsibility to reimburse CHDO for any unauthorized
expense incurred nor shall CHDO create any deficit in the name of
City nox- shall CHDO assign any payment due from City to any other
party.
4. City sYiall only disburses funds to CHDO upon receipt of
invoices :from suppliers or contractors or other evidences
approved by City's Housing Assistance staff. These invoices must
be in accordance with Exhibit B of: this contract.
5. City sYiall not be liable' to CHDO for any costs incurred
by CHDO for any performances rendered by CHDO which are not
strictly in accordance with the terms of this contract, including
the terms of Exhibit A, Exhibit B, Exhibit C, Exhibit D, and
Exhibit E of th.i:~ Contract.
6. City shall not be liable' for costs incurred or
performances rendered by CHDO before commencement of this
contract or after termination of t;his contract.
B. Limit of Liabilit
Notwithstanding any other provision under this contract,
the total of all payments and other obligations incurred by City
under this contract shall not exceed the sum of Two Hundred Forty
Thousand and Na/=L00 Dollars $240,000.00) for new construction and
developers fees.
SECTION 5. DISBURSEMENT OF FUNDS
A. City will reimburse eligible costs incurred under this
contract in accordance with the requirements of 24 CFR 92. CHDO
shall not request= disbursement of funds under this contract until
the funds are needed for payment of eligible costs. The amount
of each request.rnust be limited to the amount needed.
B. It is expressly understood and agreed by the parties hereto
that payments under this contract are contingent upon CHDO's full
and satisfactory performance of= its obligations under this
contract.. City reserves the right to recapture funds provided
under this contract in the event; that CHDO has been unable to
commit funds before the end of this contract period.
C. City will Y~e:Lease land acquis_Ltion funds for title
policy/closing fees at the time a settlement statement and
invoice is provided by CHDO indicating the total closing costs
for the purchase of land.
D. City will re]_ease land acquisition funds for appraisals and
surveys at the time an invoice is provided by CHDO.
E. City will re]_ease funds for pY•e-development activities at the
time an invoice is presented by CF[DO for each pre-development
line item listed in Exhibit B.
F. It is expre:~sly understood and agreed by the parties hereto
that any right or remedy provided for in this Section 5 or in any
other provision of this contract ;hall not preclude the exercise
of any other rigYit or remedy undeY~ this contract or under any
provision of law, nor shall any action taken in the exercise of
any right or remedy be deemed a waiver of any other rights or
remedies. Failure to exercise any right or remedy hereunder
shall not constitute a waiver of t:he right to exercise that or
any other right or remedy at any time.
SECTION 6. UNIFORM ADMINISTRA'T'IVE REQUIREMENTS,
COST PRINCIPLES, ATdD PROGRAM INCOME
A. CHDO shall nnaintain records of the receipt, accrual, and
disposition of all program income in. the same manner as required
for all other fuxids under this contract. CHDO shall provide
reports of program income as requested by City and at the
termination of this contract.
B. CHDO shall, return to City, upon termination of this
contract., any unused funds and any income derived specifically
from the. use of HOME funds by CHDO. Income to CHDO, which is
generated as a result of CHDO's u:~e of grant funds, shall be
considered program income and must: be used by CHDO for City
approved eligible CHDO activities.,
C. As a non-profit organization,. CHDO must comply with
applicable regul<~tions under OMB Circular Numbers A-110 and A-122
pursuant. to 24 CFR Part 92.
SECTION 7. RETENTION AND ACCESSIBILITY OF RECORDS
A.. CHDO must establish and maintain sufficient records, as
determined by City, to account for the expenditure and use of
HOME funds.
B. CHDO shall give the City, the: Comptroller of the United
States, o:r any of: their duly authorized representatives, access
to and the right to examine all books accounts, records, reports,
files and other papers, things or property belonging to or in use
by CHDO pertaining to this contY~act. Such rights to access
shall continue a:~ long as the records are retained by CHDO. CHDO
agrees to maintain such records iri an accessible location.
C. All :records pertinent to thi:; contract shall be retained by
CHDO for three yE~ars following the date of termination of this
contract or submission of the final close-out report, whichever
is later, with the following exceptions:
1. If an.y litigation, claim or audit is started before the
expiration of thE~ three year period and extends beyond the three
year period, the records will be maintained until all litigation,
claims or audit. findings involvinq_ the records have been
resolved..
2. Record: relating to rea]_ property acquisition or long
term lease shall be retained for a period equal to the useful
life of any repa_Lrs made with HOMES funds .
SECTION 8. REPORTING REQL7IREMENTS
A. CHDO shall.:~ubmit to City such reports on the operation and
performance of this contract as may be required by City including
but not limited i~o the reports specified in this Section 8. CHDO
shall provide City with all reports necessary for City's
compliance with :?4 CFR Part 92.
B. In additic>n to the limitations on liability otherwise
specified in this contract, it is expressly understood and agreed
by the parties hereto that if CHDO fails to submit to City in a
timely and sati.s.factory manner an~r report required by this
contract:, City may, at its sole discretion, withhold any or all
payments otherwise due or requested by CHDO hereunder. If City
withholds such p<~yments, it shall notify CHDO in writing of its
decision and tYie reasons therefore. Payments withheld pursuant
to this paragraph may be held by City until such time as the
delinquent obligations for which iEunds are withheld are fulfilled
by CHDO.
SECTION 9. MONITORING
The City reserves the right to, from time to time, carry out
field inspections to ensure compliance with the requirements of
this contract. C',HDO shall attend a compliance meeting after the
award of funds and prior to the first draw. After each
monitoring visit, City shall provide CHDO with a written report
of the monitor's findings. If the: monitoring reports note
deficiencies in C'HDO' s performances under the terms of this
contract, the monitoring report shall include requirements for
the timely correction of such deficiencies by CHDO. Failure by
CHDO to take action specified in the monitoring report may be
cause for suspen:~ion or termination of this contract, as provided
i:n Sections 17 and 18 of this contract.
SECTION 1~~. INDEPENDENT CC>NTRACTOR
It is expressly understood and agreed by the parties hereto that
City is contracting with CHDO as an Independent Contractor, and
that CHDO, as such, agrees to hold City harmless and to indemnify
City from and against any and all claims, demands, and causes of
action of every kind and character which may be asserted by any
third party occurring or in any way incident to, arising out of,
or in connection with the services to be performed by CHDO under
this contract. CHDO shall present proof of Directors and Officers
Insurance.
SECTION 11. SUBCONTRACTS
A. Except for~:~ubcontracts to which the federal labor standards
requirements apply, CHDO may not :subcontract for performances
described in thi:~ contract without: obtaining City's written
approval.. CHDO :hall only subcont:ra.ct for performances described
in this contract to which federal labor standards requirements
apply after CHDO has submitted a Subcontractor Eligibility Form,
as specified by City, for each proposed subcontract, and CHDO has
obtained City's prior written approval, based on the information
submitted, of C'HDO' s intent to ent;er• into such proposed
subcontract. CHDO, in subcontracting for any performances
described in trii:~ contract, expre:~sly understands that in
entering into such subcontracts, City is in no way liable to
CHDO's subcontractor(s).
B. In no event shall any provision of this Section 11,
specifically the requirement that CHDO obtain City's prior
written approval of a subcontractor's eligibility, be construed
as relieving CHDCO of the responsibility for ensuring that the
performances rendered under all subcontracts are rendered so as
to comply with al_1 terms of this contract, as if such
performances rendered were rendered by CHDO. City's approval
under Section 11 does not constitute adoption, ratification, or
acceptance of CHL>O's or subcontractor's performance hereunder.
City maintains the right to insist. upon Contractor's full
compliance with t:he terms of this contract, and by the act of
approval under Section 11, City does not waive any right of
action which may exist or which ma.y subsequently accrue to City
under this contract.
C. CHDO shall comply with all applicable federal, state, and
local laws, regu]_ations, and ordinances for making procurements
under this contract.
SECTION 12. CONFLICT OF II~fTEREST
No person who (1) is an employee, agent, consultant, officer or
elected or appointed official of t:he City of Port Arthur or any
applicant that rE~ceives funds and who exercises or has exercised
any functions or responsibilities with respect to activities
assisted with funds provided under this contract or (2) who is in
a position to participate in a decision making process or gain
inside information with regard to such activities may obtain a
personal or financial interest or benefit from a HOME assisted
activity, or have an interest in any contract, subcontract, or
agreement (or proceeds thereof) with. respect to a HOME assisted
activity either i.or themselves or those with whom they have
family or busin.e:~s ties, during their tenure or for one year
thereafter. CH:DO shall ensure compliance with applicable
provisions under 24 CFR 85.36 anti OMB Circular A-110 in the
procurement of property and services.
SECTION 13. NONDISCRIMINATION Ai~TD SECTARIAN ACTIVITY
A. Equal, Opportunity. CHDO shall Ensure that no person shall on
the grounds of race, color, religion, sex, handicap, familial
status, or national origin be excluded from participation in, be
denied the benefits of, or be sub-jetted to discrimination under
any program or activity funded in whole or in part with funds
provided under this contract. In addition, funds provided under
this contract must be made available in accordance with the
requirements of: Section 3 of the Housing and Urban Development
Act of 1.968 (12 i:J.S.C. 1701u) that::
1. To the greatest extent feasible, opportunities for
training and employment arising in. connection with the planning
and carrying out of any project assisted with HOME funds provided
under this contract be given to law-income persons residing
within the City of Port Arthur; anal
2. To the greatest extent feasible, contracts for work to
be performed in connection with any such project be awarded to
business concerns>, including, but not limited to, individuals or
firms doing business in the field of planning, consulting,
design, architecture, building cor.~struction, rehabilitation,
maintenance, or z-epair, which are located in or owned in
substantial part by persons residing in the City of Port Arthur.
B. Religious Ox-ganizations. Funds provided under this
contract may not be provided to primarily religious
organizations, such as churches, f:or any activity including
secular activitiE~s. In addition, funds provided under this
contract may not be used to rehabilitate or construct housing
owned by primarily religious organizations or to assist primarily
religious organ.i~;ations in acquiring housing. Funds provided
under this contract may not be used to rehabilitate or construct
nonresidential owned by primarily religious organizations except
as provided in Section 22 of this contract. The completed
housing or nonre:~idential building(s) must be used exclusively by
the owner entity for secular purposes and must be available to
all persons regardless of religion. There must be no religious or
membership criteria for either tenants or users of the property
as specified in ?_4 CFR 92.257.
SECTION 14. LEGAL AUTHORITY
A. CHDO assuY~es and guarantees ghat CHDO possesses legal
authority to entE=_r into this contract, receive funds authorized
by this contract, and to perform the services CHDO has obligated
to perform hereunder.
B. The person ar persons signing and executing this contract on
behalf of CHDO, or representing themselves as signing and
executing this contract on behalf of CHDO, do hereby warrant and
guarantee that he, she or they have been duly authorized by CHDO~
to execute this ~~ontract on behal:E of CHDO and to validly and
legally bind CHDO to all terms, performances, and provisions
herein set forth.
C. CHDO shall riot employ, award contract to, or fund any person
that has been dek~arred, suspended, proposed for debarment, or
placed on ineligibility status by U.S. Department of Housing and
Urban Development:. In addition, City shall have the right to
suspend or terminate this contract. if CHDO is debarred, proposed
for debarment, oz- ineligible from participating in the HOME
Program.
SECTION 15. LITIGATION ANL) CLAIMS
CHDO shall give City immediate notice in writing of 1) any
action,, including any proceeding f>efore an administrative agency
filed against CHI)O in connection with this contract; and 2) any
claim against CHI)O, the cost and e°xpense of which CHDO may be
entitled to be reimbursed by City. Except as otherwise directed
by City, CHDO shall furnish immediately to City copies of all
pertinent papers received by CHDO with respect to such action or
claim.
SECTION 16. CHANGES AND ANTENDMENTS
A. Except as specifically provided otherwise in this contract,
any alterations, additions, or deletions to the terms of this
contract shall be by amendment hex-eto in writing and executed by
both parties to this contract.
B. It is understood and agreed k>y the parties hereto that
performances undE~r this contract must be rendered in accordance
with the Act, they regulations promulgated under the Act, the
assurances and certifications madE~ to City by CHDO, and the
assurances and certifications madE~ to the United States
Department of Housing and Urban Development by the City of Port
Arthur with regard to the operation of the City's HOME Program.
Based on these considerations, and in order to ensure the legal
and effective performance of thi;~ contract by both parties, it
is agreed by the parties hereto tYiat. the performances under this
contract are by i~he provisions of the HOME Program and any
amendments theY•ei~o and may further be amended in the following
manner: City may from time to time during the period of
performance of this contract issuE~ policy directives which serve
to establish, i.nl~erpret, or clarii.y performance requirements
under this contract. Such policy directives shall be promulgated
by the City Manager when authorizE.d by the City Council of Port
Arthur in the f°o:rm of HOME issuances shall have the effect of
qualifying the terms of this contract and shall be binding upon
CHDO, as if written herein, provided however that said policy
directives and any amendments to the City's HOME Program shall
not alter the teY-ms of this contract so as to release City of any
obligation specified in Section 4 of this contract to reimburse
costs incurred by CHDO prior to the effective date of said
amendments or policy directives.
C. Any alterations, additions, or deletions to the terms of
this contract which are required by changes in Federal or state
law or regulations are automatically incorporated into this
contract without written amendment. hereto, and shall become
effective on the date designated by such law or regulation.
SECTION 1'7
SUSPENSION
In the event CHDO fails to comply with any terms of this
contract, City may, upon written notification to CHDO, suspend
this contract in whole or in part anal withhold further payments
to CHDO, and prohibit CHDO from incurring additional obligations
of funds under this contract.
SECTION 18. TERMINATION
The City may te.rrninate this contract in whole or in part, in
accordance with .?4 CFR 85.43 and this Section. In the event CHDO
materially fails as determined by City, to comply with any term
of this contract,, whether stated in a Federal statute or
regulation, an a:~surance, in a City plan or application, a notice
of award, or elsewhere, City may take one or more of the
following actic>n:~
1. Temporarily withhold ca:~h payments pending correction
of the deficiency by CHDO or take mare severe enforcement action
against CHDO.
2. Disallow all or part of the cost of the activity or
action not in compliance.
3. Withhold further HOME awards from CHDO.
4. Take other remedies thai~ may be legally available as
determined by the City, to comply with the terms of this
contract, City may terminate this contract for convenience in
accordance with.~?4 CFR 85.44. This contract may be terminated at
any time when both parties agree ghat the continuation of the
performances would not produce beneficial results commensurate
with further expenditure of funds. Termination shall occur 30
days after the parties agree to terminate. The CHDO shall not
incur any new obligations once an agreement to terminate is
reached and shal]L cancel all outstsanding obligations. The CHDO
will be reimbursE,d for expenses incurred to the date of
termination provided grant funds are available.
SECTION 19. AUDIT
A. Unless otherwise directed by City, CHDO shall arrange for
the performance of an annual financial and compliance audit of
funds received and performances rendered under this contract,
subject to the following conditions and limitations:
1. CHDO shall have an audit: made in accordance with 24 CFR
Part 44, or OMB Circular A-110 for any of its fiscal years
included within.t.he contract period specified in Section 2 of
this contract in which the CHDO receives more than $25,000 in
Federal financial assistance provided by a Federal agency in the
form of grants, contracts, loans, loan guarantees, property,
cooperative agree=ments, interest :subsidies, insurance or direct
appropriations, but does not include direct federal cash
assistance to individuals. The term includes awards of Federal
financial assistance received directly from federal agencies, or
indirectly through other units of State and local government;
2. At the option of CHDO, Each audit required by this
section may cover either CHDO's entire operations or each
department, agency, or establishmE~nt. of CHDO which received,
expended, or ot.he~rwise administerE~d federal funds;
3. Notwithstanding Section 4(a)(4) and Section 4(a)(5),
CHDO shall util.i:.e funds budgeted under this contract to pay for
that portion of:i~he cost of such audit services properly
allocable to tree activities funded by City under this contract,
provided however that City shall riot. make payment for the cost of
such audit services until City ha:~ received such audit report
from CHDO;
4. Unless otherwise specif_Lcally authorized by City in
writing, CHDO sh<~11 submit the report of such audit to City
within thirty (30) days after completion of the audit, but no
later than one (7_) year after the end of each fiscal period
included, within. the period of this contract. Audits performed
under Subsection A of this Section 19 are subject to review and
resolution by C'it;y or its authori~;ed representative.
5. As a part of its audit, CHDO shall verify expenditures
according to th.e Budget attached as Exhibit B.
B. Notwithstanding Subsection A of this Section 19, City
reserves the rigYit to conduct an annual financial and
compliance audit of funds receivedi and performances rendered
under this contract. CHDO agrees to permit City or its
authorized repre:~entative to audit: CHDO's records and to obtain
any documents, materials, or information necessary to
facilitate such audit.
C. CHDO under~st:ands and agrees t:hat it shall be liable to City
for any costs disallowed pursuant to financial and compliance
audit(s) of fund: received under this contract. CHDO further
understands and agrees that reimbursement to City of such
disallowed costs shall be paid by CHDO from funds which were not
provided. or otherwise made available to CHDO under this contract.
D. CHDO shall. take all necessary actions to facilitate the
performance of such audit or audits conducted pursuant to this
Section 7.9 as City may require of CHDO.
E. All approved HOME audit reports shall be made available for
public inspection within 30 days after completion of the audit.
SECTION 20. ENVIRONMENTAL CLEARANCE REQUIREMENTS
A. CHDO undersi~ands and agrees ghat by execution of this
contract CHDO shall be responsible for providing to City all
information, cc>ncerning this HOME funded project, required for
City to meet its responsibilities for environmental review,
decision makir.~g, and other actioxi which applies to City in
accordance witri and to the extent specified in 24 CFR, Part 58.
In accordance with 24 CFR 58.77(b), CHDO further understands and
agrees that CHL)O shall make all rE~asonable efforts to assist City
in handling inquiries and complaints from persons and agencies
seeking redres:s:in relation to environmental reviews covered by
approved certifications.
SECTION 2:L. LABOR STANDARDS
A. Davis-Bacon Wage Rates. All laborers and mechanics employed
in the rehabilitation of a project. assisted under this contract
shall be paid wages at rates not less than those prevailing on
similar rehabilitation in this locality, if such a rate category
exists, or the appropriate rate a~; determined by the Secretary of
Labor in accordance with the Davis-Bacon Act (40 U.S.C. 276a-5),
and contracts involving their employment shall be subject to the
provisions, as applicable, of the Contract Work Hours and Safety
Standards Act (40 U.S.C. 327-333). Construction contractors and
subcontractors, must comply with zegulations issued under these
Acts and with other federal laws and, regulations pertaining to
labor standards and HUD Handbook 1.334.1 (Federal Labor Standards
Compliance in Housing and Community Development Programs), as
applicable.
B. Copeland Anti-Kickback Act. CHDO shall comply with all
applicable regulations of the Secretary of Labor, United States
Department of Labor, made pursuant: to the so-called "Copeland
Anti-Kickback P.,ct:" of June 13, 19_44, (48 Stat. 948: 62 Stat. 862;
Title U.S.C., Section 874; and Title 40 U.S.C., Section 276 C),
and any amendments or modifications thereof, and shall cause
appropriate provisions to be inserted in any contracts or
subcontracts pursuant to the performances under this contract to
ensure compliance therewith by al.l contractors and
subcontractors t}zereto.
SECTION 22. SPECIAL CONDITIONS
A. City shall. not release any funds for costs incurred by CHDO
under this contract until City ha:~ received certification from
CHDO that its fiscal control and fund accounting procedures are
adequate to assure proper disbursal of and accounting for funds
provided under this contract. Cii~y shall specify the content and
form of such certification.
B. Repayment. CHDO agrees t}zat all repayments, including
all interest arzd other return on the investment of HOME funds
will be made to City. City reserves the right to permit CHDO to
retain interest or return on investment of HOME funds for
additional eliq_i:ble activities by the CHDO.
C. Reversion of Assets. Upon termination of this Contract,
all funds remaining on hand on the date of termination, and all
accounts receivak~le attributable t;o the use of funds received
under this contract shall revert t:o City. CHDO shall return
these assets to City within seven (7) business days after the
date of termination.
D. Enforcement of Contract. City shall not release any funds
for any costs incurred by CHDO foY~ land acquisition under this
contract until City has received from CHDO a Settlement Statement
(HUD 1;1 indicating the costs associated with the purchase.
E. Flood Insurance. City shall. not release any funds for any
costs incurred by CHDO under this contract until City has
received, from CHI)O proof of flood insurance pursuant to the
requirements of t:he National Flooci Insurance Act of 1968, as
amended, and thE~ Flood Disaster Act of 1973. CHDO understands
and agrees that key the execution of this contract CHDO shall
assume responsibility for keeping flood insurance in force in an
amount equal to at least the prorated value of the repairs to the
building rehabilitated with funds under this contract.
F. Displacement:, Relocation, anti Acquisition. CHDO must
ensure that it will not displace persons (families, business and
non-profit organ_Lzations) as a result of a project assisted with
funds provided under this contract:.
SECTION 23. ORAL AND WRIT7'EN~ CONTRACTS
A. All oral a.nd written contracts between the parties to this
contract. relating to the subject matter of this contract that
were made prior too the execution of this contract have been
reduced to writing and are contained in this contract.
B. The. attachments enumerated and denominated below are hereby
made a part of this contract, and constitute promised
performances by CHDO in accordance with Section 3 of this
contract.:
1. Exhibii~ A, Performance ~3tatement
2. Exhibit B, Budget
3. Exhif>it C, Project Implementation Schedule
4. Exhibii~ D, Applicable Laws and Regulations
5. Exhibit E, Certifications
SECTION 24. VENUE
For purposes of ]Litigation pursuant to this contract, venue shall
lie in Jefferson County, Texas.
SECTION 25. ADDRESS OF NOTICE AND COMMUNICATIONS
City of Port Arthur Savannah Housing Corporation
444 4th Street P. O. Box 3948
Port Arthur, Texas 77640 Port: Arthur, TX 77641
ATTN: Colleen Russell ATTN: Sinclair Oubre
Director, Planning & Executive Director
Community Development
SECTION 26. CAPTIONS
Each paragraph of this contract has been supplied with a caption
to serve only a.s a guide to contents. The caption does not
control the meaning of any paragraph or in any way determine its
interpretation or application.
SECTION 27. COMPLIANCE WITH FEDERAL, STATE AND LOCAL LAWS
CHDO shal l comb>ly with all Federa]L ,
statutes, ordinances, rules, regula
any court or acim:inistrative body or
activities and performances of CHI)O
request by City, CHDO shall furni;~h
compliance herewith.
State and local laws,
.ions, orders and decrees of
tribunal related to the
under this contract. Upon
satisfactory proof of its
APPROVED IN FORM:
Mark Sokolow, C'it:y Attorney
Signed and agreed to on the day of 2009.
CITY OF PORT AR'.THUR
By:
Stephen Fitz~g_i.bbons
City Manager
ATTEST:
City Secretary
Signed and agreed to on the _day of 2009.
Savannah Housing Corporation
By.
Sinclair Oubre
Executive DirE~ctor
EXHIBIT A
Performance Statement
Savannah Housing Corporation
CHDO shall carry out t:he following activities identified in the 2009
Federal HOME GuidelinE;s:
Savannah Housing Corparation shall assist. in carrying out the mission of
the City of Port Arthur Community Development Department to eliminate
blight, provide decent:, safe, sanitary and affordable housing for low and
moderate income persons/families (80o N[FI) within the City of Port Arthur.
Two (2) lots shall be provided Savannah Housing Corporation by the City of
Port Arthur.
Savannah Housing Corporation shall perform site clearance and construct
two (2) new homes witYi 1200 sq. ft. to 1400 sq. ft. for low and moderate
income persons/familiE~s over the next twelve months. Savannah Housing
Corporation will work closely with Tejano Center to ensure qualified buyers
are aware of and have access to new homes constructed in the City by
Savannah Housing Corporation.
Savannah Housing Corporation will facilitate the First Time Homebuyer
Program which will include homebuyer orientation and education classes,
credit and budget war}shops, one on one' counseling, pre-purchase and post-
purchase counseling. ;3avannah Housing Corporation will provide two (2)
qualified buyers.
Savannah Housing Corporation shall utilize the HOME Program CHDO Set-aside
funds for eligible C'HDO activities.
It i.s further understood that any costs above the contract amount incurred
by the Savannah Housing Corporation for- these activities shall be paid for
with private or other funds.
All costs and developer fees delineated are subject to Federal Statutes,
Code of Federal Regulations and HUD Guidelines as to CHDO activities and
shall not exceed said guidelines, and any provisions of fees in excess
thereof are void.
Prior to the implementation of construction, the location of the homes to
be constructed, the certification of eligibility of the buyers, all
financing, lien documents and all house plans shall be reviewed and
approved by the City of Port Arthur. furthermore, all homes shall have a
ten (10) year. builders warranty on the foundation, two (2) year warranty on
the mechanics and orze (1) year warranty an the workmanship. The necessary
precautions including retainages and applicable bonds will be obtained from
contractors as to ensure performance ar.~d avoid liens.
EXHIBIT B
Budget
Savannah Housing Corporation
The developer's fees, ($5,000 per home), will be disbursed to Savannah
Housing corporation in two phases.
1. $2,500 upon 50$ completion of the construction
2. $2,500 will. be paid upon receipt, of a final certificate of
occupancy and invoice from Savannah Housing Corporation.
New construction Activities $200,000
Down payment and closing costs assistance $40,000
Grand Total shall not to exceed $240,000
EXHIBIT C
Project Implementation Schedule
Savannah Housing Corporation
CONTRACT START DATE: CONTRACT ENDING DATE:
April 8, 2009 April 7, 2010
HOME Buyer
Activities
1
2
3
4
5
6
7
8
9
10
11
12
Identify
Partici
ants
p
Evaluate
H
hi
omeowners
p
Barriers
Case Mana
ement
g
A
ccess
Conventional
Mortgage Resourr_es
Pre & Post
P
h
urc
ase
Counseling
Site Clearance,
Site Development,
Construction
Activities
EXHIBIT D
The Applicable Laws and Regulations
CHDO shall comply with all federal., state, and local laws and
regulations applicable to the activities and performances
rendered by CHDO under this contract including but not limited to
the laws, and regulations specified in Section I through IV of
this Exhibit D.
I. CIVIL RIGHTS
The Fair Housing Act (42U.S.C'. 3601-20) and implementing
regulations at 24 CFR part 10; Executive Order II063, as amended
by Executive Order 11063, as amended, by Executive Order 12259 (3
CFR, 1958-1963 Comp., 652 and 3CFF;, 1980 Comp., p. 307) (Equal
Opportunity in Housing and implementing regulations at 24 CFR,
Part 107; and title VI of the Civil Rights Act of 1964 (42
U.S.C. 2000d) (Nondiscrimination on Federally Assisted Programs)
and implementing regulations issuE~d at 24 CFR, Part 1;
Executive Order 11063, as amended by Executive Order 12259,
and 24 CFR part. 107, "Nondiscrimiriat.ion and Equal Opportunity in
Housing under Executive order 110Ei3 or 24 CFR, Part 107 shall be
a proper basis for the imposition of sanctions specified in 24
CFR 107.60;
The prohibition against discrimination on the basis of age
under the Age L)iscrimination Act of 1975 (42 U.S.C. 6101-07) and
implementing regulations t 24 CFR,, Part 146, and the
prohibitions against discrimination against handicapped
individuals under Section 504 of i~he Rehabilitation Act of 1973
(29 U.S.C. 794) and implementing regulations at 24 CFR, Part 8;
The requix-ements of Executive Orders 1246 (3 CFR 1964-65,
Comp., p. 339) (:Equal Employment Opportunity) and the
implementing regulations issued at 4I CFR, Chapter 60.
The requirements of Executives Orders 11625 and 12432
(concerning Minority Business Ente:rprise), and 12138 (concerning
Women's Business Enterprise). Consistent with HUD's
responsibilities under these OrdeY•s, each applicant must make
efforts to encourage the use of minority and women's business
enterprises in connection with HOME funded activities. Each
Contractor must prescribe proceduY•es acceptable to the State to
establish activit:ies to ensure they inclusion, to the maximum
extent possible, of minorities and women, and entities owned by
minorities and women. The Contractor/Subcontractor will be
required to identify contracts which have been bid by minority
owned, women owned, and/or small disadvantaged businesses.
The Age Discrimination Act of'. 1975 (42 U.S.C., Section 6101
et seq.); Section 504 of the Rehabilitation Act of 1973 (29
U.S.C., Section 794) and "Nondiscrimination Based on Handicap in
Federally-Assisted Programs and Activities of the Department of
Housing and Urbari development", 24: CFR, Part 8. By signing this
contract, Contractor understands and agrees that the activities
funded herein shall be operated iri accordance with 24 CFR, Part
8; and the Architectural Barriers Act of 1968 (42 U.S.C., Section
4151 et. seq.), including the use of a telecommunications device
for deaf person; (TDDs) or equally effective communication
system.
II. LEAD-BASED PAINT
Title IV of the Lead-Based Paint Poisoning Prevention Act
(42 U.S.C. Sec. 4831).
III. ENVIRONMENTAL STANDARDS
Environmental Review Procedures for Title I Community
Development Block Grant Programs, 24 CFR Part 58, as amended in
47 Fed. Reg. 15750 (April 12, 1982);
National H:i;~toric Preservation Act of 1966 (16 U.S.C. Sec.
470 et seq.) and 40 CFR Parts 1500-1508;
The National Historic Preservation Act of 1966 (16 U.S.C.
Sec. 470 et seq.) as amended; particularly Section 106 (16 U.S.C.
Sec. 470f);
Executive Order 11593, Protection and Enhancement of the
Cultural Environment, May 13, 1971. (36 Fed. Reg. 8921),
particularly Section 2 (c) ;
The Reservoir Salvage Act of 1960 (16 U.S.C. Sec. 469 et
seq.), particularly Section 3 (16 U.S.C. Sec. 469a-1), as amended
by the archeological; and Historic: Preservation Act of 1974;
Flood Disaster Protection Act: of 1973, (42 U.S.C. Sec. 4001
et. seq.) as amended, particularly Sections 102 (a) and 202(a) (42
U.S.C. Sec. 4012a (a) and Sec. 4106(a);
Executive Order 11988, Floodplain Management, May 24, 1977
(42 Fed. Reg. 26951), particularly Section 2(and);
Executive Order 11990 Protection of Wetlands, May 24, 1977
(42 Fed. Reg. 26961), particularly Section 2 and 5;
The Coastal Zone Management Act of 1972, (16 U.S.C. Sec.
1451 et seq.) as amended, particularly Section 307(c) and (d) (16
U.S.C. Sec. 1456 (c) and (d);
The Safe Drinking Water Act of 1974, (42 U.S.C. Sec. 201,
300 (f) et seq.), and (21 U.S.C. SE~c. 349) as amended,
particularly Section 1424 (e) (42 U.S.C. Sec. 300h-303 (e) ;
The Endangered Species Act of: 1973, (16 U.S.C. Sec. 1531 et
seq.) as amended, particularly Section 7 (16 U.S.C. Sec. 1536));
The Wild a.nd Scenic Rivers Ac:t of 1968, (16 U.S.C. Sec. 1271
et seq.) as amended, particularly Section 7(b) and (c) (16 U.S.C.
Sec. 1278 (b) anal (c)) ;
The. Clean Air Act (41 U.S.C. Sec. 7401 et seq.) as amended,
particularly Section 176(c) and (d) (42 U.S.C. Sec. 7506(c) and
(d));
Farmlands Protection and Policy Act of 1981, (7 U.S.C. Sec.
4201 et. seq.) 24 CFR Part 51, Environmental Criteria and
Standards.
IV. ACQUISITIC>N,~RELOCATION
The Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 (42 U.S.C., Sec. 4601 et. seq.),
49 CFR Part 24, and 24 CFR Sectior.~ 570.49a (55 Fed. Reg. 29309
(July 18, 1990)).
EXHIBIT E
Certification Regarding Lobbying for
Contracts, Grants, Loans, and. Cooperative Agreements
The undersigned.c:ertifies, to the best of his knowledge and
belief, that:
1. No federal appropriated funds have been paid or will be
paid, by or on behalf of the undersigned, 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 memk~er of congress in connection
with the awarding of any federal contract, the making of any
federal grant, the making of any federal loan, the entering into
of any cooperative agreement, or modification of any federal
contract., grant., loan, or cooperative agreement.
2. 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 i_n connection with this federal
contract, grant., loan, or cooperative agreement, the undersigned
shall complete and submit standard form -LLL, "Disclosure Form to
Report Lobbying", in accordance w_'Lth its instructions.
3. The undersigned shall require that the language of this
certification ~>e included in the award documents for all sub-
awards at all tviers (including subcc>ntracts, sub-grants, and
contracts under grants, loans, and cooperative agreements) and
that all CHDOs shall certify and disclose accordingly.
This certification is material representation of fact which
reliance was placed when this transaction was made or entered
into. Submission of this certification is a prerequisite for
making ar enter°ing into this tran:~action imposed by section 1352,
Title 31, U.S
certification
than $100,000
Signed:
Code. Any person ~n~ho fails to file the required
shall be subject to a civil penalty of not less
for- each such failure .
Sinclair Oubre DATE