HomeMy WebLinkAboutPR 15778: SAVANNAH HOUSING CORPORATION - CHDO FUNDSInteroffue JKemorandum
7fousing andNeigh6orFiood~vitaGzatwn
To: StE~ve Fitzgibbons, City Manager
From: Mike Mason, Director, Housing and Neighb~~d Revitalization
Date: WE~dnesday, March 3, 2010
Re: P. R. 15778
RECOMMENDATION:
I recommend City Council adopt Proposed Resolution 15778, authorizing execution of a contract
between ~~avannah Housing Corporation and the City of Port Arthur to allocate Community Housing
Development Organization funds (CHDO) for the construction of three affordable homes, down
payment ~~nd closing costs assistance and developer fees.
BACKGROUND:
The City c,f Port Arthur has obligated itself to fulfill the statutory Federal HOME rE~quirement of
allocating a minimum of fifteen percent (15%) of its annual HOME Program funds for eligible CHDO
Set-a-side activities.
Savannah Housing Corporation is a chartered Texas non-profit corporation. The Mayor & City
Council of Port Arthur, hereby certify and designate Savannah Housing Corporation as a Community
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 oiat the mission of the City of Port Arthur Housing Assistance Programs to eliminate blight,
provide clecent, safe, sanitary and affordable housing for low and moderate-income
persons/f2imilies within the City.
As much as 50% to 80% of the new construction homes shall be Energy STAR qualified homes in
accordance with the Leadership in Energy & Envirc-nmental Design (LEEDS), Green Buiilding 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 Tejan~~ 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 ~~nd post-purchase counseling.
Direct financial assistance will be provided to the homebuyers up to $20,000 per horr~ebuyer (up to
$17,000 too assist with down payment and $3,000 to assist with closing costs), based on actual
need. Savannah Housing Corporation has obligated itself to provide an additional $~i,000 to assist
with closing costs.
BUDGETARY/FISCAL EFFECT:
Funding gill be provided by the Federal HOME Program and CHDO Set aside funds; $63,640 of
2006 funds, account number 108-2141-626.59-00, project number HE0601; $67,349 of 2007 funds,
account number 108-2141-626.59-00 project number HE0701; $65,371 of 2008 funds; and $72,567
of 2010 funds, account number 108-2141-626.59-00 project number HE0901; $60,000 of 2006
funds will be provided for down payment and closing costs assistance from account number 108-
2141-626.54-01 project HE0604; $15,000 of 2006 funds will be provided and used for developers
fees from account 108-2141-626.89-00, project HE0604, for a total amount of $343,927.
STAFFING/EMPLOYEE EFFECT:
Housing Division staff will be responsible for administering the contract with Savannah Housing
Corporation.
SUMMARY:
I recommE~nd City Council adopt Proposed Resolution 15778, authorizing execution of a contract
between Savannah Housing Corporation and the City of Port Arthur to allocate Community Housing
Development Organization funds (CHDO) for the construction of three affordable Ihomes, down
payment: and closing costs assistance and developers fees.
P. R. 15778
03-3-10 BAF/MM-Housing
RESOLUTION NUMBER
A RESOLUTION AUTHORIZING EXECUTION OF A CONTRACT
BETWEEN SAVANNAH HOUSING CORPORATION AND THE
CITY OF PORT ARTHUR TO ALLOCATE COMMUNITY HOUSING
DEVELOPMENT ORGANIZATION (CHDO) FUNDS FOR THE
CONSTRUCTION OF THREE AFFORDABLE HOMES, DOWN
PAYMENT AND CLOSING COSTS ASSISTANCE AND DEVELOPER
FEES IN THE TOTAL AMOUNT OF $343,927 FROM THE 2006,
2007, 2008 AND 2009 HOME PROGRAM FUNDS, ACCOUNT
NUMBER 108-2141-626.59-00 PROJECT NUMBERS HE0601,
HE0604, HE0701, HE0801 AND HE0901.
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 fai~nilies; and,
WHEREAS, the Department of Housing and Urban Development awards (Federal HOME
Program hands to the City annually, pursuant to the Housing and Development Act o~f 1974 for the
primary bE~nefit of low and moderate income persons/families; and,
WHEREAS, by its adoption of Resolution Number 05-106, (authorizing submission of a
2005 Consolidated Plan) the City has obligated itself to provide direct financial assistance for
homeownE~rship to low and moderate income persons/families; 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; and,
WHEREAS, Savannah Housing Corporation will construct three affordable homes for
low and moderate income citizens, provide down payment and closing costs assistance; developer
fees will pirovided upon completion of the homes,; and,
WHEREAS, as much as 50% to 80°/a of the new construction homes sriall be Energy
STAR qualified homes in accordance with the Leadership in Energy & Environmental Design
(LEEDS), (green Building System; and,
WHEREAS, 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; and,
WHEREAS, the Tejano Center will facilitate the First Time Homebuyer Program which
will includf~ homebuyer orientation and education classes, credit and budget workshops, one on one
counseling, pre-purchase and post-purchase counseling; and,
WHEREAS, direct financial assistance will be provided to the homebuyers up to
$20,000 per homebuyer (up to $17,000 to assist with down payment and $3,000 to assist with
closing costs), based on actual need. Savannah Housing Corporation has obligated itself to provide
an additional $5,000 to assist with closing costs; and,
WHEREAS, the Mayor and City Council of Port Arthur, hereby certify and designate
Savannah Housing Corporation as a Community Housing Development Organization (CHDO) in
accordance with 24 CFR 92.300. Savannah Housing Corporation is now eligible to u:>e a minimum
of 15% CI-iD0 set aside Federal HOME Program funds to assist in carrying out the rnission of the
City of Port Arthur Housing Assistance Programs t:o eliminate blight, provide decent, safe, sanitary
and affordable housing for low and moderate-income persons/families within the City,. 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, as attached hereto as Exhibit "A" wrierein the City will expend HOME funds of in the
total amount of Three Hundred Forty-Three Thousand Nine Hundred Twenty-Seven, ($343,927), for
the construction of three affordable homes, down payment and closing costs assistance and
developer<.> fees.
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., 2010 at a Regular Meeting of the City Council of the City of
Port Arthur, Texas by the following vote: AYES: MAYOR.
COUNCILN1EMBERS
NOES:
MAYOR
ATTEST:
CITY SECRETARY
APPROVE[) FOR FORM:
~,~,., ~~
CITY ATTORNEY
APPROVE[) FOR ADMINISTRATION:
CTTY MANAGER
~ ~ ~ .~ --
MIKE MASON, I E OR
HOUSING ~~ND NEIGHBORHOOD REVITALIZATION
APPROVED FOR AVAILABILITY OF
FUNDS:
DIRECTOR OF FINANCE
ATfACHMENTl
CITY OF PORT ARTHUR
CONTRACT FOR A
COMMUNITY HOUSING DEVELOPMENT ORGANIZATION
STATE C)f= TE=XAS ~
COUNT'S OF JEFFERSON ~
SECTION 1. PARTIES TO THE CONTRACT
This contract and agreement is made and entered into by and between the City
of Port Arthur, Texas (hereinafter called the "City") acting herein by its
Mayor and City Manager, duly authorized by Resolution of the City Council of
the C-ity of Port Arthur and the Savannah Housing Corporation, (hereinafter
called '"CHDO") Jefferson County. Texas. The parties hereto agree, by the
execui;ion hereof, that they are bound to the mutual obligations and to the
performance and accomplishment of the tasks described herein.
WITNE>SETH 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,
WHEREAS, the Department of f-lousing 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,
WHEREAS, under the terms of the grant the City must ensure that
all applicable state and federal requirements are met concerning the
disbursement of funds to the CHDO; and,
WHEREAS, projects undertaken by the CHDO pursuant to this ~~ontract
must principally be of direct benefit to low and moderate income persons as
has bE~en determined by the parties and is established under the guidelines of
the Housing and Community Development Ac of 1974, as amended;
Now, Therefore, The Parties hereto do mutually agree as follows:
SECTION 2. CONTRACT PERIOD
This contract and agreement shall commence an April 5, 2010 and shall
termiriat:e on April 4, 2011, unless otherwise specifically provided by the
terms of this contract.
SECTION 3. CHDO'S PERFORMANCE
The CFiDO shall construction three homes, provide down payment and closing
costs assistance for a low and moderate income persons/families with projected
sales prices of $85,000 to $100,000 and house plans of 1200 sq. 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 residence
for tree applicable period of affordability, or the City will recapture 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 provide the qualified buyer. 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. In addition, site clearance and new construction developi~nent
expen~;es ire the amount of $100,000 is being provided as delineated in Exhibit
"B" from Federal HOME Program funds.
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.
The City of Port Arthur shall provide down payment and closing costs
assistance in the amount not to exceed ~~20,000. Savannah Housing Corporation
has obligated itself to provide an additional $5,000 to assist with down
payment: and closing costs associated with the purchase of the home.
Developer fees in the amount of $5,000 per location shall be awarded S~~vannah
Housing Corporation.
The CHDCI shall perform all activities in accordance with the terms of the
Performance Statement, hereinafter called Exhibit A; the Budget, hereinafter
called Exhibit B; the Project Implementation Schedule, hereinafter called
Exhib-it C; the Applicable Laws and Regullations, hereinafter called Exhibit D;
the Certifications, hereinafter called E=xhibit E; the assurances,
certifications, and all other statements made by the CHDO in its application
for the project funded under this contract; and with all other terms,
provisions, and requirements set forth ~n this contract. It shall be CHDO's
respor~.sibility to furnish its own accounting services including clerical,
statistical, bookkeeping for expenditures made by CHDG in performance of the
obl ig<~tions herein.
SECTION 4. CITY'S OBLIGATIONS
A. Measure of Liabili
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 CHDG during the contract period for
performances rendered under this contract by CHDG, subject to the limitations
set forth in this Section 4.
I. It is expressly understood and agreed by the parties hereto that
City'; obligations under this Section 4 are contingent upon the actual receipt
of adE~quate federal funds to meet City's liabilities under this contract. If
adequ~ite funds are not available to make payments under this contract, City
shall notify CHDG in writing within a reasonable time after such fact is
determined. City shall then terminate this contract and will not be liable
for failure to make payments to CHDG under this contract.
2. City shall not be liable to CHDG for any costs incurred by CHDO,
or any portion thereof, which has been paid to CHDG or is subject to payment
to CHC10, or~ has been reimbursed to CHDG or is subject to reimbursement to CHDO
by any source other than City or CHDG.
3. City shall not be liable to CHDG for any costs incurred by CHDO or
for arty performances rendered by CHDG which are not allowable costs as set
forth -in Section 6 of this contract. City assumes no responsibility to
reimburse CHDG for any unauthorized expense incurred nor shall CHDO create any
deficit in the name of City nor shall CHDO assign any payment due from City to
any oi:her party.
4. City shall only disburse funds to CHDO upon receipt of invoices
from <>uppliers or contractors or other evidences approved by City's Housing
Assisi:ance staff. These invoices must k>e in accordance with Exhibit B of this
contract..
5. City shall not be liable to CHDO for any costs incurred by CHDO
for ar~,y performances rendered by CHDO wkiich are not strictly in accordance
with t:he terms of this contract, including the terms of Exhibit A, Exhibit B,
Exhibit C, Exhibit D, and Exhibit E of this Contract.
r.~. City shall not be liable for costs incurred or performances
rendered by CHDO before commencement of this contract or after termination of
this contract.
B. Limit, of Liabili
Notwithstanding any other provision under this contract, the total of
all payments and other obligations incurred by City under this contract shall
not e>;ceed the sum of Three Hundred Forty-Three Thousand Nine Hundred Twenty-
Seven and No/100 Dollars ($343,927.00) f'or new construction activities, down
pa;yment and closing costs and developers fees.
SECTION 5. DISBURSEMENT OF FUNDS
A. (;ity 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 contraca until the funds are needed for
payment: of eligible costs. The amount of each request must be limited to the
amount, needed.
B. I1: 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 release land acquisition 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 release land acquisition funds for appraisals and surveys at the
time an invoice is provided by CHDO.
E. Cii:y will release funds for pre-development activities at the time an
invoice is presented by CHDO for each pr•e-development line item listed in
Ex'hibil: B.
F. It. is expressly understood and agreed by the parties hereto that any
right or' remedy provided for in this Sec:tior~ 5 or in any other provision of
this contract shall not preclude the exercise of any other right or remedy
under i;his 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
right; or remedies. Failure to exercise any right or remedy hereunder shall
not cor~stit.ute a waiver of the right to exercise that or any other right or
remedy at any time.
SECTIC)N 6. UNIFORM ADMINISTRATIVE REQUIREMENTS,
COST PRINCIPLES, AND PROGRAM INCOME
A. CHDO shall maintain records of the receipt, accrual, and disposition of
all program income in the same manner as required for all other funds 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, an;y unused
funds and any income derived specifically from the use of HOME funds b,y CHDO.
Income to CHDO, which is generated as a result of CHDO's use 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
regulations under OMB Circular Numbers A,-110 and A-122 pursuant to 24 CFR Part
92.
SECTION 7. RETENTION AND ACCESSIE3ILITY OF RECORDS
A. C:HDO 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, or any
of thc~ir~ 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 contract. Such
rights t:o access shall continue as long as the records are retained by CHDO.
CHDO ~~gr~ees to maintain such records in an accessible location.
C. All records pertinent to this contract shall be retained by CHDO for
three ;years following the date of termination of this contract or submission
of the final close-out report, whichever is later, with the following
except: i ons
~. If any 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 involving
the records have been resolved.
?. Records relating to real property acquisition or long term lease
shall be retained fora period equal to the useful life of any repairs made
with HOME funds.
SECTION 8. REPORTING REQUIREMENTS
A. CHDO shall submit to City such reports on the operation and performance
of this contract as may be required by City including but not limited to the
reports specified in this Section 8. CFIDO shall provide City with all reports
necessary for City's compliance with 24 CFR Part 92.
B. In addition 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 satisfactory manner any report
required by this contract, City may, at its sole discretion, withhold any or
all p~yrrents otherwise due or requested by CHDO hereunder. If City withholds
such payments, it shall notify CHDO in writing of its decision and the reasons
therefore. Payments withheld pursuant t.o this paragraph may be held b,y City
until such time as the delinquent oblig<~tions for which funds are withheld are
fulfi-Iled by CHDO.
SECTION 9. MONTT~RTNG
The C-ity reserves the right to, from time to time, carry out field inspections
to ensure compliance with the requirements of this contract. CHDO 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 t;he monitor's findings. If the monitoring reports note deficiencies
in CHDO'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 suspension or termination of this contract, as provided in
Sections li and 18 of this contract.
SECTION 10. INDEPENDENT CONTRACTOF;
It is expressly understood and agreed by the parties hereto that City is
contr~~c:ting with CHDO as an Independent Contractor, and that CHDO, as such,
agree; to hold City harmless and to indemnify City from and against an,y 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 t;his contract. CHDO shall present proof of Directors and Officers
Insurance.
SECTICIN 11. SUBCONTRACTS
A. f..xcep~t for subcontracts to which the federal labor standards
requirements apply, CHDO may not subcontract for performances described in
this contract without obtaining City's written approval. CHDO shall only
subcontract for performances described in this contract to which federal labor
standards requirements apply after CHDO has submitted a Subcontractor
Eligi~~ility Form, as specified by City, for each proposed subcontract, and
CHDO has obtained City's prior written approval, based on the information
submitted, of CHDO's intent to enter into such proposed subcontract. CHDO, in
subcontracting for any performances described in this contract, expressly
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
subcoritr~actor's eligibility, be construed as relieving CHDO of the
responsibility for ensuring that the performances rendered under all
subcontracts are rendered so as to comply with all 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 CHDO'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 may subsequently accrue to City under this contract.
C. CHDO shall comply with all applicable federal, state, and local laws,
regul~~tions, and ordinances for making procurements under this contract.
SECTION 12. CONFLICT OF INTEREST
No person who (1) is an employee, agent, consultant, officer or elected or
appointed official of the City of Port Arthur or any applicant that receives
funds and who exercises or has exercises any functions or responsibilities
with respeca to activities assisted with funds provided under this contract or
(2) wrio 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
interE~st iri any contract, subcontract, or agreement (or proceeds thereof) with
respect to a HOME assisted activity either for themselves or those with whom
they f'cave family or business ties, during their tenure or for one year
there~~fter. CHDO shall ensure compliance with applicable provisions under 24
CFR 8~=>.36 and OMB Circular A-110 in the procurement of property and services.
SECTION 13. NONDISCRIMINATION AND SECTA~;IAN 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
exclucled from participation in, be denied the benefits of, or be subjected 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 A,ct of 1968 (12 U.S.C. 1701u) that:
1. To the greatest extent feasiible, 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
low-income persons residing within the City of Port Arthur; and
2. To the greatest extent feasible, contracts for work to be
performed in connection with any such pr~ojec:t be awarded to business concerns,
including, but. not limited to, individuals or firms doing business in the
field of~ planning, consulting, design, architecture, building construction,
rehabilitation, maintenance, or repair, which are located in or owned in
subst~int.ial part by persons residing in the City of Port Arthur.
B. Religious Organizations.. Funds provided under this contract ma.y not be
provided to primarily religious organizations, such as churches, for any
activity including secular activities. 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
organizations in acquiring housing. Funds provided under this contract may
not bE~ used to rehabilitate or construct, nonresidential owned by primarily
religious organizations except as proviced in Section 22 of this contract.
The completed housing or nonresidential 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
criter~-ia for either tenants or users of the property as specified in 24 CFR
92.25.
SECTION 14. LEGAL AUTHORITY
A. CHDO assures and guarantees that CHDO possesses legal authority to enter
into this contract, receive funds authorized by this contract, and to perform
the services CHDO has obligated to perform hereunder.
B. The person or 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 contract on behalf of CHDO and to
validly and legally bind CHDO to all terms, performances, and provisions
herein set forth.
C. CHDO shall not employ, award contract to, or fund any person that has
been debarred, 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 termiinate this contract if CHDO is
debarred, proposed for debarment, or ineligible from participating in the HOME
Program.
SECTION 15. LITIGATION AND CLAIMS
CHDO shall give City immediate notice irr writing of 1) any action, including
an,y pr,oc:eeding before an administrative agency filed against CHDO in
connection with this contract; and 2) arry claim against CHDO, the cost and
expense 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 pE~rtinent papers received by CHDO with respect to such action or claim.
SECTION 16. CHANGES AND AMENDMENTS
A. Except as specifically provided otherwise in this contract, any
alterations, additions, or deletions to the terms of this contract shall be by
amendment hereto in writing and executed by both parties to this contract.
B. It is understood and agreed by the parties hereto that performances
under this contract must be rendered in accordance with the Act, the
regulations promulgated under the Act, the assurances and certifications made
to City by CHDO, and the assurances and certifications made to the United
State; 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 this contract by both parties, it is agreed by the parties hereto that the
performances under this contract are by the provisions of the HOME Pro~~ram and
any amendments thereto 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, interpret, or clarify
performance requirements under this contract. Such policy directives shall be
promulgated by the City Manager when authorized by the City Council of Port
Arthur in the form of HOME issuances shall have the effect of qualifying the
terms of this contract and shall be bindling upon CHDO, as if written herein,
proviced however that said policy directives and any amendments to the City's
HOME E'rogram shall not alter the terms 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
autom~rtically incorporated into this contract without written amendment
hereto. and shall become effective on the date designated by such law or
regul ~rti on .
SECTION 17. SUSPENSION
In thE~ event CHDO fails to comply with any terms of this contract, City may,
upon u~ritten notification to CHDO, suspend this contract in whole or in part
and withhold further payments to CHDO, and prohibit CHDO from incurring
additional obligations of funds under this contract.
SECTION 18. TERMINATT~N
The Cit:y may terminate this contract in whole or in part, in accordance with
24 CFF; 85.43 and this Section. In the event CHDO materially fails as
determ-fined by City, to comply with any term of this contract, whether stated
in a Federal statute or regulation, an assurance, in a City plan or
application, a notice of award, or elsewhere, City may take one or more of the
fo l 1 o~ri ng actions
T. Temporarily withhold cash payments pending correction of tl~e
deficiency by CHDO or take more severe enforcement action against CHDO.
~'. Disallow all or part of the cost of the activity or action not in
cornpl i ance .
3. Withhold further HOME awards from CHDO.
4. Take other remedies that may be legally available as deterrrrined by
the City, to comply with the terms of this contract, City may terminate this
contract for convenience in accordance with 24 CFR 85.44. This contract may
be terminated at any time when both parties agree that the continuation of the
performances would not produce beneficial results commensurate with further
expendit;u re of funds. Termination shal'~~I occur 30 days after the parties agree
to teririinat:e. The CHDO shall not incur any new obligations once an agreement
to terminat:e is reached and shall cancel all outstanding obligations. The
CHDO will be reimbursed for expenses incurred to the date of termination
provided grant. funds are available.
SEC-HON 19. AUDIT
A. Unless otherwise directed by City, CHDO shall arrange for the
perfor,r>lance 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 oracle in accordance with 24 CFR Part 44,
or OMB Circular A-110 for any of its fiscal years included within thecontract
period specified in Section 2 of this contract in which the CHDO receives more
than 8,25,000 in Federal financial assistance provided by a Federal agency in
the form of grants, contracts, loans, loan guarantees, property, cooperative
agreements, interest subsidies, insurance or direct appropriations, but does
not include direct federal cash assistance to individuals. The term includes
awar,d~, 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
establishment of CHDO which received, expended, or otherwise administered
federal funds;
3. Notwithstanding Section 4(a)(4) and Section 4(a)(5), CHDO shall
utilize funds budgeted under this contract to pay for that portion of the cost
of such audit services properly allocable to the activities funded by City
under this contract, provided however that City shall not make payment for the
cost: of such audit services until City has received such audit report from
CHDO;
4. Unless otherwise specifically authorized by City in writinca, CHDO
shall submit the report of such audit to City within thirty (30) days ~~fter
cornpletion of the audit, but no later than one (1) 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
City or its authorized representative.
~:~. As a part of its audit, CHDO shall verify expenditures according
to thE~ Budget attached as Exhibit B.
B. Notwithstanding Subsection A of this Section 19, City reserves the right
to conduct an annual financial and compliance audit of funds received and
performances rendered under this contract. CHDO agrees to permit City or its
author,iz~ed representative to audit CHDO's records and to obtain any documents,
materials, or information necessary to facilitate such audit.
C. CHDO understands and agrees that it shall be liable to City for any
costs disallowed pursuant to financial and compliance audit(s) of funds
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 19 as City may require
of CHDO.
E. All approved HOME audit reports shall be made available for public
inspect;ion within 30 days after completion of the audit.
SECTION 20. ENVIRONMENTAL CLEARANCE REQUIREMENTS
A. CHDO understands and agrees that by execution of this contract CHDO
shall be responsible for providing to City all information, concerning this
HOME funded project, required for City to meet its responsibilities for
environrrient.al review, decision making, and other action which applies to
City in accordance with and to the extent specified in 24 CFR, Part 58. In
accordance with 24 CFR 58.77(b). CHDO further understands and agrees that CHDO
shall make all reasonable efforts to assist City in handling inquiries and
compl~iints from persons and agencies seeking redress in relation to
enviror~rr~ental reviews covered by approved certifications.
SECTION 21. LABOR STANDARDS
A. ~)avis-Bacon Wage Rates. All laborers and mechanics employed in the
rehab-ilitat:ion of a project assisted under this contract shall be paid wages
at raises not less than those prevailing on similar rehabilitation in this
locality, if such a rate category exists, or the appropriate rate as
deterr~ined by the Secretary of Labor in accordance with the Davis-Bacon Act
(40 U.S.C. 276,-5), and contracts involving their employment shall be subject
to the provisions, as applicable, of the Contract Work Hours and Safety
Stand~~rds Act (40 U.S.C. 327-333). Construction contractors and
subcor~tr•actors, must comply with regulations issued under these Acts and with
other federal laws and regulations pertaining to labor standards and HUD
Handbook. 1334.1 (Federal Labor Standards Compliance in Housing and Community
Development: Programs), as applicable.
B. opeland 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 Act" of June 13, 1934, (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
appro~>riate provisions to be inserted iri any contracts or subcontracts
pursuant. to the performances under this contract to ensure compliance
thereurith by all contractors and subcontractors thereto.
SECTION 22. SPECIAL CONDITIONS
A. c:;ity shall not release any funds for costs incurred by CHDO under this
contr~ict until City has received certification from CHDO that its fiscal
control and fund accounting procedures acre adequate to assure proper disbursal
of anti accounting for funds provided uncler this contract. City shall specify
the content. and form of such certification.
B. Repayment. City reserves the right to permit CHDO to retain interest or
return on investment of HOME funds for additional eligible activities oy the
CHDO. CHDO will be permitted to retain all CHDO proceeds, including all
interE~st and other return on the investment of HOME funds will be made to
City. CHDO revolve the funds for use with eligible affordable housing
project,.
C. Reversion of Assets. Upon termination of this Contract, all funds
rernaining on hand on the date of termination, and all accounts receiva'~ble
attribut:able to the use of funds received under this contract shall revert to
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 iricur,red by CHDO for land acquisition under this contract until City has
recei~ied from CHDO a Settlement Statement (HUD 1) indicating the costs
assoc-iat:ed with the purchase.
E. Flood Insurance. City shall not release any funds for any costs
incurred by CHDO under this contract unt;il City has received from CHDO proof
of flood insurance pursuant to the requirements of the National Flood
Insur~rnc:e Act of 1968, as amended, and the Flood Disaster Act of 1973. CHDO
understands and agrees that by 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 1-unds under this contract.
F. Displacement, Relocation, and Acq~risition. CHDO must ensure that it
will rrot. displace persons (families, business and non-profit organizations)
as a result, of a project assisted with funds provided under this contract.
SECTION 23. ORAL AND WRITTEN CONTF;ACTS
A. All oral and written contracts between the parties to this contract
relating to the subject matter of this contract that were made prior to the
execut:~on 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. Exhibit A, Performance Statement.
2. Exhibit B, Budget
3. Exhibit C, Project Implementation Schedule
4. Exhibit 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
444 4i:h Street
Port Arthur, Texas 77640
ATTN: Steve Fitzgibbons
City Manager
SECTION 26. CAPTIONS
Savannah Housing Corporation
P. 0. Box 3948
Port: Arthur, TX 77641
ATTN: Sinclair Oubre
Executive Director
Eacf~ ~rar~agraph of this contract has beers supplied with a caption to serve only
as a guide to contents. The caption does not control the meaning of any
paragraph or in any way determine its interpretation or application.
SEC-LION 27. COMPLIANCE WITH FEDERAL, STATE AND LOCAL LAWS
CHDO shall comply with all Federal, State and local laws, statutes,
ordinances. rules, regulations, orders and decrees of any court or
administrative body or tribunal related to the activities and performances of
CHDO under this contract. Upon request by City, CHDO shall furnish
sat-isfactory proof of its compliance herewith.
APPRO'JED IN FORM:
Valecia Tiz_eno, City Attorney
Signed and Agreed to on the day of 2010.
CITY Of= PORT ARTHUR
By:
Stephen Fitzgibbons
(~i i;;y Manager
ATTEST:
City Secretary
Signed and Agreed to on the day of 2010.
Savannah Housing Corporation
By: _
>inclair Oubre
f=xecutive Director
EXHIBIT A
Performances Statement
Savannah Housing Corporation
CHDO shall carry out; the following activities identified in the Federal HOME Guidelines:
Savannah Horasing Corporation shall assist in carrying out the mission of the City of Port
Arthur Community Development Department to el-iminate blight, provide decent, safe,
sanitary anti affordable housing for low and moderate income persons/families (80~ MFI)
within the Cit;y of Port Arthur.
Savannah Housing Corporation shall construct tthree homes, that are 1200 sq. ft. to 1400
sq. ft. fora low and moderate income person/family. The homes shall range from $85,000
to $100,000 each. Savannah Housing Corporation will work closely with Tejano Center to
ensure qualified buyer is aware of and have access to the new home constructed in the City
by Savannah Housing Corporation. Savannah Housing Corporation shall provide down payment
and closing costs assistance in the amount of $20,000 per home ($17,000 for principal buy
down and `3,000 for closing fees). A developer fee of $5,000 per location will be
provided to Savannah Housing Corporation.
Savannah Housing Corporation will work. with The Tejano Center to 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.
Savannah Housing Corporation will provide a qualified buyer.
Savannah Housing Corporation shall utilize the HOME Program CHDO Setaside funds for
eligible CHDO activities.
It is furthE~r understood that any costs above the contract amount incurred b,y 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 one (1) year warranty on the workmanship. The necessary
precautions including retainages and applicable bonds will be obtained from contractors as
to ensure perforrlance and avoid liens.
EXHIBIT B
Budget
Savannah Housing Corporation
The developer's fees are $5,000 per location and will be disbursed to Savannah Housing
corporation in two phases.
1. 962,500 upon 50i completion of the construction
2. 9>2,500 will be paid upon receipt oi- a final certificate of occupancy and
iinvoice from Savannah Housing Corporation.
New construction Activities ($85,000-$100,000) $268,927
Down payment: and closing costs ($20,000 ea) $ 60,000
Developers fees ($5,000 ea) $ 15,000
Grand Total shall not to exceed X343,927
EXHIE~IT C
Project Implementation Schedule
Savannah Housing Corporation
CONTRACT START DATE: CONTRACT ENDING DATE:
April 5, 2010 April 4, 2011
HomE~ Buyer Activities 1 2 3 4 5 6 7 8 9 10 11 12
I
dentify Participants
Evaluate H
hi
omeowners
p
Barr~i ers
C
M
ase
anagement
Acce:>s Conventional
Mortgage Resources
Pre fx Post Purchas
e
Counseling
Sit
Cl
Si
e
earance,
te
De
~l
t
ve
opmen
,
Consi;ruction
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
contr~ic:t including but not limited to the laws, and regulations specified in
Section I through IV of this Exhibit D.
CIVIL RIGHTS
The Eair Housing Act (42U.S.C. 3601-20) and implementing regulations at
24 CFF; part 10; Executive Order II063, as amended by Executive Order 11063, as
amended by Executive Order 12259 (3 CFR, 1958-1963 Comp., 652 and 3CFR, 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.
20004; (Nondiscrimination on Federally Pssisted Programs) and implementing
regulations issued at 24 CFR, Part l;
Executive Order 11063, as amended by Executive Order 12259, and 24 CFR
part 107, "Nondiscrimination and Equal Opportunity in Housing under Executive
order :11063 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
Discrirninat.ion Act of 1975 (42 U.S.C. 6101-07) and implementing regulations
t 24 CF=R, Fart 146. and the prohibitions against discrimination against
handicapped individuals under Section 5C14 of the Rehabilitation Act of 1973
(29 U.S.C. 794) and implementing regulations at 24 CFR, Part 8;
The requirements 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 Executive Orders 11625 and 12432 (concerning
Minority Business Enterprise), and 12138 (concerning Women's Business
EnterC~rise). Consistent with HUD's responsibilities under these Orders, each
applicant must make efforts to encourage the use of minority and women's
businE~ss enterprises in connection with HOME: funded activities. Each
Contr~rct.or~ must prescribe procedures acceptable to the State to establish
activities to ensure the inclusion, to t:he maximum extent possible, of
minorities and women, and entities owned by minorities and women. The
Contract.oriSubcontractor 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 Urban development", 24 CFR, Part
8. B~}~ signing this contract, Contractor understands and agrees that the
activities funded herein shall be operated in accordance with 24 CFR, Part 8;
and tree Architectural Barriers Act of 1968 (42 U.S.C., Section 4151 et. seq.),
including the use of a telecommunications device for deaf persons (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 far Title I Community Development Block
Grant Programs, 24 CFR Part 58, as amended in 47 Fed. Reg. 15750 (April 12,
1982);
National Historic 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 1.06 (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. 4-69a-1), as amended by the
archeological; and Historic Preservation Act. of 1974;
(=-food Disaster Protection Act of 1.973, (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. ~-:106(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 amE~r~ded, 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. Sec. 349) as amendled, 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
ameridE~d, particularly Section 7 (16 U.S.C. Sec. 1536));
The Wild and Scenic Rivers Act 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) and (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 Aca of 1981, (7 U.S.C. Sec. 4201 et.
seq.) 24 CFR Part 51, Environmental Criteria and Standards.
IV ACQUISITION/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 CFI
Section 570.49a (55 Fed. Reg. 29309 (July 18, 1990)).
EXHIBIT E
Certification Regarding Lobbying for
Contracts, Grants, Loans, and Cooperative Agreements
The undersigned certifies, to the best of his knowledge and belief, that:
.k. No federal appropriated fundls 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
officE~r or employee of congress, or an employee of a member of congress in
conriec:tion with the awarding of any federal contract, the making of an;y
federal grant, the making of any federal loan, the entering into of an,y
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 wi ll 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
emplo~y~ee of congress, or an employee of a member of congress in 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 with its instructions.
3. The undersigned shall require that the language of this
certii-ic:ation be included in the award documents for all subawards at all
tiers (including subcontracts, subgrants, 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 where this transaction was made or' entered into. Submission of this
certi'~ication is a prerequisite for makiing or entering into this transaction
imposed, by section 1352, Title 31, U.S. Code. Any person who fails to file
the rE~quired certification shall be subject to a civil penalty of not less
than `.6100,000 for each such failure.
Signed:
Si ricl ai r Oubre DATE