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HomeMy WebLinkAboutPR 16265: SAVANNAH HOUSING CORPORATION Interoffice 91�t'emorandum �fousing � �11�eigFi6orhood �vitaG,zation To: Steve Fitzgibbons, City Manager From: Mike Mason, Director ofHousrng & Neighborhood Revitalization Date: Thursday, December 16, Z010' Re: P, R. No. 16265 RECOMMENDATION: I recornmend the City Council adopt Proposed Resolution 16265, authorizing th� execut:ion of a contract between the City of Port Arthur and Savannah Housing Corpo��ation in the amount of $150,000, to assist with construction of four (4) homes in the 1100 Block of 5tn BACKG ROU N D: The City of Port Arthur has obligated itself to fulfill the requirements of the Federal HOME Program in allocating a minirr�um of fifteen percent (15%) of its annual HOME Progr�im funds for eligible CHDO Set:-aside activities. Savannah Housing Corporation is a c:hartered Texas non-profit corporation whirh meets all of t:he guidelines for re-certification as a Community Housing Development Organization (CHDO), in accordance with the requirements of 24 CFR 92.300. Savannah Housing Corporation will use a minimum of 15% CHDO Set-aside Federal HOME Program funds to assist in carrying o�t the mission of the City of Port Arthur Housing Assistance Programs to eliminate blight and provide decent, safe, sanitary, and affordable housing for low and mod�rate inc�me persons/families within the City. As much as 80% of the new constr�ction homes shall be Energy STAR qualified homes. Savannah Housing Corporation will work closely with the Tejano Center to insu� qualified buyers are aware of and have access to new homes constructed in th� City by Savannah Housing Corporation. The City of Port Arthur Housing and Neighborhood Revitalization Department will also work ��losely with Savannah Housiny Corporation to assist with providing low and moderate income first time homebuyers. The Tejano Center will facilitate the First TimP Homebuyer Program which will include homebuyer orientation and education classes, credit and budget workshops, on�: on one counse�ling, pre-purchase and post-purchase counseling. Additionally, the City will provide down payment and closing costs assistance up to $20,000, (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� additional funds up to $5,000 per home to assist the homebuyer with dc�wn payment and closing costs. BUDGETARY/FISCAL EFFECT: Funding will be provided by the Federal HOME Program CHDO Set-aside funds, account numbE�r 108-2141-626.59-00, project numbers HE0601, HE0701 and HE0801. STAFFING/EMPLOYEE EFFECT: Housir�g & Neighborhood Revitalization Department staff will be responsible for administering the contract with Savannah Housing Corporation. SUMMARY: I recornmend the City Council adopt Proposed Resolution 16265, authorizing the execut:ion of a contract between the City of Port Arthur and Savannah Housing Corpor•ation in the amount of $150,000 to assist with construction of a four (4) homes. P. R. 16265 12-16-10 MM/baf/Housing RESOLUTION NUMBER A RESOLUTION AUTHURIZING THE EXECUTION OF A CONTRACT BEfWEEN SAVANNAH HOUSING CORPORATION AND THE CITY OF PORT ARTHUR IN THE AMOUNT OF $150,000 ( ACCOUNT NUMBER 108-2141-626.59-00, PROJECT NUMBERS HE0601, HE0701 & HE0801) TO ASSIST WITH CONSTRUCTION OF FOUR (4) HOMES IN THE 1100 BLOCK OF 5 STREET AND PROVIDE UP TO $20,000 FOR DOWN PAYMENT AND CLOSING COSTS ASSISTANCE FOR LOW TO MODERATE INCOME PERSON/FAMILIES (ACCOUNT NUMBER 105-2141-626.54-00 PROJECT HE0904) AND AUTHORIZING CHODO RECERTIFICATION IN ACCORDANCE WITH THE REQUIREMENTS OF THE FEDERAL HOME PROGAM WHEREAS, Savannah Housin� Corporation (°SHC� was chartered as a Texas non-pr�ofit corporation to provide safe, decent, sanitary and affordable housing to low and moderate income families; and, WHEREAS, under the requirements of 24 CFR 92.300, SHC meets the requirf:ments of the Federal HOME program regulations for designating/certifying non- profit ��rganizations as Community Housing Development Organizations; 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 caf low and moderate income persons/families; and, WHEREAS, the City Council, by its adoption of Resolution Number 10-11;7, (authc�rizing submission of a 2010 Consolidated Plan), has obligated itself to prnvide direct financial assistance for home awnership to low and moderate income persor�s/families; and, WHEREAS, under the terms of the grant, the City Council must approve �he reque��t for the disbursement of funds to the SHC in the amount of $150,000 ta assist with construction of four (4) homes in the 1100 Block of 5 Street, as delineated in the Contr�jct in substantially the same farm as attached hereto as Exhibit "A"; and, WHEREAS, the City will provide down payment and closing costs assistance of up to $20,,000 for each low to moderate income person/families; and, WHEREAS, SHC has obligated itself to provide additional funds of up to $5,000 per home to assist the prospective homeowner with down payment and closing costs; and, WHEREAS, activities undertaken by th� SHC 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. NOW THEREFORE, BE IT RESOLVED E�Y THE CITY COUNCIL OF THE CITY OF PORT ,ARTHUR: THAT the facts and opinions in the Preamble are true and correct. THAT the City Manager is herein autharized to execute a Contract with Savannah Housirig Corporation in the amount af $150,C100 to assist with construction of fc►ur (4) homes� in the 1100 Block of 5 Street as outlined herein and further described in the attach�ed Contract, in substantially the same form as attached hereto as Exhibit °A". THAT the certification is valid for one �1) year as outlined herein and further described in the Certificate, attached hereto �s Exhibit ��B". THAT a copy of the caption ot this Resolution be spread upon the minutes of the City Cc�uncil. READ, ADOPTED AND APPROVED this day of _ A.D., 2011, at a Regular Meeting of the City Counc:il of the City of Port Arthur, Texas by the following vote: AYES: MAYOR COUNCILMEMBERS NOES: MAYOR ATTE�iT: APPROVED FOR AVAILABILITY OF FUNDS: CITY SECRETARY DIRECTOR OF FINANCE APPR�DVED FOR FORM: � � � _� . ��,," � ' � _.J��` �`� CITY ��TTORNEY � APPR�DVED FOR ADMINISTRATION: CITY I��IANAGER MIKE I�IASON, DIRECTOR OF HOUSING AND NEIGFIBORHOOD REVITALIZATION EXHIBIT "A" CITY OF PORT ARTHUR CONTRP,CT FOR A CONIlrliJNITY HOUSING DEVELOPMENT ORGANIZATION STATE OF TEXAS � COUNTY OF JEFFERSON � SECTION 1. PARTIES TO THE CONTRACT This contract and agreement is made and entered into by anc� between the City of Port Arthur, 'Pexas (hereinafter called the "City") acting herein by its Mayo_r and City Manager, duly authorized by Resolution of the C:ity Council of the City of` Port Arthur and the Savannah Housing Corporation, (hereinafter called "CHDC") Jefferson County, Texas. The parties hereto agree, by the execution hereof, that they a:re bound to the mutual obligations and to the performanca and accomplishment of tY�e tasks described herein. WITNE�SSETH THAT: WHEREAS, the CHDO operates as a Texas non-profit corporation that is organized to ,�ssist low income individt�als and families achieve the American dream of Homeownership; �ind, WHEREAS, the Department of Housing and Urban Devel.opment annually award HOME Program funding to the Cit��, pursL�ant to the Housing and Devel�opment Act of 1974, as ame�nded (here:inafter called the "grant"); and, WHEREAS, under the term,� of the grant the City must ensure that all applicable ;state ��nd federal requirements are met concerning the disbursement of furzds to the CHDO; and, WHEREAS, projects undert�aken by the CHDO pursuant to this contract must principa:lly be of direct benefit to low and moderate income persons as :has be�n determined by the parties and is established under the guidelin�s of the Housing and Community Development Act of 1974, as amended; NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS: SECTION 2. CONTRP,CT PERIOD This contract and agreement shall commence on January 5, 2C10 and shall terminate on January 4, 2012, unless otherwise specifically provided by the terms of this coni�ract. SECTION 3. CHDO'S PERFORMANCE The CHDO shall construct four (4) homes in the 1100 Block c�f 5th Street. for low and moderate incomE= persons/families with projected sales prices of $96,000 and house 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 re:quired to participate in a First Time Homebuyer Program and maintain the property as their primary residen��e for the applicable peri.od of affordability, or the City will racapture the funds investe�d. The F'irst Time Homebuyer Program .includes homebuyer orienta�tion and education classes, credit and budget workshops, indiviclual counseling, pre-purchase and post-purchase counseling. Savainnah Housing Corporation will provide the qualified buyers. Sav�nnah Housing Corporation will work closely with the Tejano Cente�r to insur•e qualified buyers are aware of and have access to new homes const.ructed in the City. Sauannah Housing Corporation will work close:ly with DS4�1 Homes, LLC to pr��vide construction of the homes. The City of Port Arthur Housing �and Neighborhood Revitalization DepaY�tment will also work closely with Savannah Housing Corpc>ration to assist with providing low and moderate income first. time homebuyers. In acldition, funds are bein.g provided to assist with the construction costs in the total amount of $150,000 is beinc� provi.ded as delineated in Exhibit "B'" from Federal HOME Program. As much as 80% of the new construc:tion homes shall be Energy STAR qualified homes. The City of Port Arthur sha:11 protride down payment and closing costs assistance in the amo�ant not: to exceed up to $20,000. Savannah Housing Corporation has obligated itself to provid.e additional funds up to $5,0��0 per home to assist the homebuyer with down payment and closing cost;s associated with the purchase of the homes. The CHDO shall perform all <�ctivit:ies in accordance with th.e terms of the Performance Statement�, hereinafter called Exhibit A; the Budget, hereinafter called Exhibit B; the Project Implementation Schedule, he:reinaft�er called Exhibit C; the Applicable Laws and Regulations, hereinafter called Exhibit D; the Certifications, hereinafter c��lle.d Exhibit E; the assur�ances, certifications, and all oth�r statements made by the CHDO i.n its application for the project funded under this contract; anc� with a1:1 other terms, provisions, and �requirements set forth in this contract. It shall be CHDO's responsibility to furnish it�� own accounting services includi:ng cle:rical, statistical, bookke�eping for expenditures made by CH:DO in performance of the obligat.ions herein. SECTION 4. CITY'S OBLIGATIONS A. M easure of Liability 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 reasonab:le costs incurred by the C:HDO durin.g the contract period for pe:rformances rendered under this contr�act by CHDO, subj ect to the limi_tations set forth in t:his Section 4. 1. It is expressly underst��od and agreed by the part:ies heret.o that City's obligations un�der this Section 4 are conti.ngent upon the actual receipt of adequate federal funcis to meet City's liabilities under this contract. If adequate f=unds are r.�at available to make payments under this contract, Cit:y shall. notify CHDO in writing within a reasonable time afte�: such fact is determined. City shall then terminate this contrac:t and will not be liable for failure to make payments to CHDO un<ier this contract. :Z. City shall not be liable� to CHDO for any costs incurred by CH]�U, or any portion thereof, which has been paid to CHDO or is su]�ject to payment to CHDO, or has been reimbursed to CHDO or is su'oject to reimbursement to CHI>O by any source other than City or CH:DO. 3. City shall not be liable� to CHDO for any costs incurred by CH:DO or for any performances rE�ndered by CHDO which are not allowable costs as set fortlz in S�ction 6 of this contract. City assumes no responsibility to reimk�urse CHDO for any unauthorized expense incurred nor shall CHDO create any deficit :in the n.ame of City nor shall CHDO assign <�ny pa�rment due from City to any other party. 4. City shall only disburse� funds to CHDO upon receipt of invoices from suppliers or ��ontrar_tors or other evidences approved by City's Housing .Assistance staff. These invoice:s must be in accordance with Exhibit B oiE this contract. 5. City shall not be liablES ta CHDO for any costs ir.�curred by CHDO for any performances rend�red by CHDO which are not. strictly in accordance with the terms of this contract, inc�luding the terms of Exhibit A, Exhibit B, Exhibit C, Exhibit D, ar.id Exhibit E of this Contract. 6. City shall not be liabl�� for costs incurred or performances rendered by CHDO bef��re commencement of this contr�act or after termination of this contract. B. Lim of Liability Notwithstanding any other provision under this contrac:t, the total. of all payments and other obligations incurred by Cit:y undeY• this contract shall n.ot exceed the sum of One Hundreci Fifty Thou�cand and No/100 Dollars ($150,000.00) for new construct:ion act:ivities . SECT]:ON 5. DISBURSEMENT OF FUNDS A. City will reimburse el.igible costs incurred under thi:� contr�act in accordance with the requirements of 24 CFR 92. CHDO shal7_ not request disbursement of funds under this contrac1� until the i=unds are needed for pa�yment of eligible costs. The amount of e��ch request must be limited to the amount needed. B. It� is expressly underst=ood arzd 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 unal�le to commit funds before the end of th�Ls contract period. C. City will release land acquis�Ltion funds for ti�le policy/closing fees at the �ime a settlement statement and invoice is provided by CHDO indic��ting the total closing costs for the purchase of land. D. City will release land <�cquis_Ltion funds for appraisals and surveys at the time an invo:ice is provided by CHDO. E. City will release funds for pre-development activities at the time an invoice is presented by CHDO for each pre-development l:ine item listed in Exhibit B. F. It is expressly understood and agreed by the parties h.ereto that any right or remedy pr��vided for� in this Section 5 or in any other provision of this contract shall not preclude the exe:rcise of any other right or remedy unde�� this contract or under a.ny provision of law, nor shall any artion taken in the exerciae of any right or remedy be deem�d a w��iver of any other right�� or remedies. Failure to exercise any ri.ght or remedy hereunder shall not constitute a waiv�r of i�he right to exercise that. or any other right or remedy at any 1�imE. SECTION 6. UNIFORM ADMINISTRP,TIVE REQUIREMENTS COST PRINCIPLES, AND PROGRAM INCOME A. CHDO shall maintain records of the receipt, accrual, a�nd disposition of all program income in the same manner as rec�uired for all other funds under this contract. CHDO shall provicle reports of program income as requested by City and at the termination of this contract. B. Upon the completion of the construction of (4) foun c��mes and the termination of this contr��ct, CHDO shall return to City, $37,500 in unused funds and any i�ncome derived specificall�r from the u.se of said HOME funds by CHDi�. The remaining $112,500, shall be retained and utilized by CHDO �solely for City approved eligible CHDO activities. Said funds and the income which is gener�ate� as a result of CHODO' s�use of grant funds shall k�e utili.zed for the above stated purposes for three consecuti�re uses. CHDO shall be required to p:rovide reports detailing t:he opera.tion, performance and the eligible use and flow of HODZE fund� retained by CHDO. C. As a non-profit organization, CHDO must comply with applicable regulations under OMB �:irr.ular Numbers A-110 anc� A-122 pursu.ant to 24 CFR Part 92. SECTION 7. RETENTION AND ACCESSIBILITY OF RECORDS A. CHDO must establish and maintain sufficient records, ais deter�mined by City, to account fo:r the expenditure and use of HOME funds. B. CHDC� shall give the City, the Comptroller of the Unite�d States, or any of their duly auth��rized representatives, ac:cess to an.d the right to examine all b��oks accounts, records, re:ports, files and other papers, things or property belonging to or in use by CHDO pertaining to this cont:ract. Such rights to acce:�s shall continue as long as the rec��rds are retained by CHDO. CHDO agrees to maintain such records i�n an accessible location. C. All records pertinent to thi;s contract shall be retair�ed by CHDO for three years following th�� date of termination of t:his contract or submission of the fin<�1 close-out report, whicr�ever is later, with the following exce��tions: 1.. If any litigation, claim or audit is started befc�re the expiration of the three year peric�d and extends beyond the three year period, the records will be maintained until all litic�ation, claims or audit findings involving the records have been resolved. 2. Records relating to rea:1 property acquisition or long term lease shall be retained for �� period equal to the usef`ul life af any repairs made with HOMl3 funds. SECTION $. REPORTING REQUIREMENTS A. CHDV shall submit to City suc�h reports on the operatic�n and performance of this contract as m<�y be required by City inc:luding but not limited to the reports specified in this Section 8. CHDO shall provide City with all reports necessary for City's compliance with 24 CFR Part 92. B. In addition to the lim:itatioris on liability otherwise specif:ied in this contract, it is expressly understood and agreed by the parties hereto that :if CHDO fails to submit �o City in a timely and satisfactory manner an}r report required by this contract, City may, at its sole d�Lscretion, withhold any or all payments otherwise due or requestE�d by CHDO hereunder. If City withho:lds such payments, it shall notify CHDO in writing of its decision and the reasons thereforE.. Payments withheld pursuant to this paragraph may be he:Ld by C.ity until such time as th.e delinquent obligations for �Nhich i=unds are withheld are fulfilled by CHDO. SECTION 9. MONITORING The City reserves the right to, from time to time, carry ou.t field inspections to ensure compl_Lance with the requirements of this contract. CHDO shall ��ttend a compliance meet:ing after the award ��f funds and prior to the f_�rst draw. After each monitoring visit, City shal:l prov_�de CHDO with a wr:itten report of the monitor's findings. If the: m�nitoring reports note deficiencies in CHDO's performance�s under the terms of this contract, the monitoring report shall include requirements for the timely correction of su��h def_�ciencies by CHDO. Failur�e by CHDO to take action specifi��d in t�he monitoring report may be cause for suspension or termination af this contract, as pr�ovided in Sections 17 and 18 of this cont�ract. SECTION 10. INDEPENDENT CANTRACTOR It is expressly understood �and agr_eed by the parties heretc� that City is contracting with CHDO as ��n Independent Contractor, and that CHDO, as such, agrees to hold City harmless and to ind'.emnify City from and against any a:nd all claims, demands, and cau�es of action of every kind and ch,aracte�r which may be asserted by� any third party occurring or in any w<�y incident to, arising ou.t of, or in connection with the service:� tc� be performed by CHDO under this contract. CHDO shall present proof of Directors and Officers Insurance. SECTION 11. SUBCONTRACTS A. Except for subcontracts to wlzich� the federal labor sta.ndards requirements apply, CHDO ma�y not :subcontract for performances described in this contract withoul� obtaining City's writter.� approval. CHDO shall only subcontract for performances de:�cribed in th.is contract to which federal labor standards requireme�nts apply after CHDO has submitted a;Subcontractor Eligibility Form, as s��ecified by City, for each pr��posed subcontract, and C�iDO has obtained City's prior written app:roval, based on the information submitted, of CHDO's intent to en�ter into such proposed subccntract. CHDO, in subcontracting for any performances described in this contract, expre;ssly understands that in entering into such subcontracts, City is in no way liable t;o CHDO's subcontractor(s). B. In no event shall any provis:ion of this Section 11, specifically the requirement that CHDO obtain City's prioY- written approval of a subcontractc�r's eligibility, be const:rued as relie CHDO of the responsil�ili.ty for ensuring that t:he performances rendered under all siabcantracts are rendered :co as to comply with all terms of this contract, as if such performances rendered were rendered by CHDO. City's approv�al under Section 11 does not constitiate adoption, ratificatiori, or acceptance of CHDO's or subcontrartor's performance hereuncter. City maintains the right to insis1t upon Contractor's full compliance with the terms of this contract, and by the act of approval under Section 11, City dc�es not waive any right of` action which may exist or which m<�.y subsequently accrue to City under this contract. C. CHDO shall comply with all appli.cable federal, state, and l�cal laws, regulations, and ordinances for making procure�rients under this contract. SECTION 12. CONFLICT OF INTEREST No person who (1) is an employee, agent, consultant, office:r or elected or appointed offici,al of i�he City of Port Arthur or• any applicant that receives fun��s and whc� exercises or :has exeY•cised any functions or responsibilities wit.h respect to activitie�s assisted with funds provide�3 unde:r this contract or (2) whc� is in a position to participate i:n a derisi.on making process or a�ain inside information with reg,ard to such activities may obtai.n a personal or financial inter�st or benefit from a HOME assi��ted activity or have an interest in ��ny contract, subcontract, or agreement (or proceeds ther�of) w:ith respect to a HOME assi.sted activity either for themsel�ves or thase with whom they have: family or business ties, during theiY� tenure or for one yea.r thereafter. CHDO shall ens�ure cornpliance with applicable provisions under 24 CFR 85.36 and OMB Circular A-110 in the: procurement of property and servires. SECTION 13. NONDISCRIMINATION AND SECTARIAN ACTIVITY A. Equal Opportunity. CHDO shall E�nsure that no person shall on the grounds of race, color, relig:ion, sex, handicap, familial status, or national origin :be exc=Luded from participation in, be denied the benefits of, or :be sub_jected to discrimination u.nder any program or activity fun�3ed in whole or in part with fun�ds 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 Developnient Act of 1968 (12 U.S.C. 1701u) that: l. To the greatest e:xtent jEeasible, opportunities fc�r training and employment arising in connection with the plar�ning and carrying out of any project a:�sisted with HOME funds pr•ovided under this contract be give:n to low-income persons residing� wi�hin the City of Port Art:hur; and 2. To the greatest e:xtent jEeasible, contracts for wc�rk to be performed in connection with any such project be awarded'� to business concerns, including, but not limited to, individua.ls or firms doing business in the field of planning, consulting, design, architecture, building construction, rehabilitation, maintenance, or repair, whi��h are located in or owned in substantial part by persons resid:ing in the City of Port Ar�thur. B. Religious Organizations. Funds provided under this contract may not be provide�3 to p��imarily religious organizations, such as chur��hes, jEor any activity including� secular activities. In addition, funds provided under thi� contract may not be used to rehab:ilitate or construct housing owned by primarily religious organizations or to assist primarily religi�us organizations in acquir:ing housing. Funds provid�ed under this contract may not be usE�d t.o rehabilitate or con�truct nonresidential owned by primarily religious organizations e:xcept as provided in Section 22 of this contract. The completed housing or nonresidential b�uilding(s) must be used exclusiti�ely by the owner entity for secular pur��oses and must be availabl.e to all persons regardless of r�ligion. There must be no religious or membership criteria for eit:her tenant.s or users of the property as specified in 24 CFR 92.257. SECTION 14. LEGAL AUTHORTTY A. CHDO assures and guaramtees t�hat CHDO possesses legal authority to enter into thi;s cont�_act, receive funds author�ized by this contract, and to pe:rform t:he services CHDO has obligated to perform hereunder. B. The person or persons �signinq and executing this contr�act on behalf of CHDO, or representing themselves as signing and executing this contract on �ehalf of CHDO, do hereby warran.t and guarantee that he, she or they haue been duly authorized by� CHDO to execute this contract on behalf_ of CHDO and to validly a.nd legally bind CHDO to all te:rms, pe�rformances, and provision.s 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 Housin.g and Urban Development. In addition, (�ity shall have the right to suspend or terminate this contract: if CHDO is debarred, prc�posed for debarment, or ineligibl�� from participating in the HOME� Program. SECTION 15. LITIGATION ADiI) CLAIMS CHDO shall give City immedi,�te not=ice in writing of 1) any action, including any proceading before an administrative a.gency filed against CHDO in conne��tion with this contract; and 2) any claim against CHDO, the cost and e�xpense of which CHDO may be entitled to be reimbursed b�y City. Except as otherwise diY�ected by City, CHDO shall furnish immed.�ately to City copies of a.11 pertinent papers received b�y 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 de:Letions to the terms of th,is contract shall be by amendment he�reta in writing and execut.ed by both parties to this contract. B. It is understood and agreed by the parties hereto that. performances under this contract rnust. be rendered in accoro�ance with the Act, the regulatio:ns prornulgated under the Act, tY:�e assurances and certificatio:ns madE� tc City by CHDO, and the: assurances and certifications made to the United States Department of Housing and Urban Davelopment by the City of Port Arthur with regard to the operation of the City's HOME Proc�ram. Based. on these considerations, anc3 in order to ensure the l.egal and effective performance of thi;s contract by both partie�:, it is agreed by the parties hereto t]zat the performances undeY� this contract are by the provisions of the HOME Program and any amendments thereto and may furthe:r be amended in the follo�iing manner: City may from time to time during the period of performance of this contract issuE= policy directives which serve to establish, interpret, or clari:Ey performance requirement.s under this contract. Such policy directives shall :be promL�lgated 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 cont:ract. and shall be :binding upon CHDO, as if written herein, provided however that said poli.cy directives and any amendments to 1�he City's HOME Program sr�all not alter the terms of this contr<�ct so as to release City of any obligation specified in Section 4 of this contract to reim��urse costs incurred by CHDO prior to tlze effective date �of said amendments or policy directives. C. Any alterations, additions, c�r deletions to the terms of this contract which are req�uired ��y changes in Federal or ���tate law or regulations are automatica:Lly incorporated into thi�� contract without written amendment hereto, and shall become: effect.ive on the date desig:nated by such law or regulation. SECTION 17. SUSPENSION In the event CHDO fails to comply with any terms of this contract,, City may, upon written notification to CHDO, sus��end this contract in whole or i:n part and withhold further payments to CHDO, and prohibit CHDO from incurring additional obliga.tions of funds under this contract. SECTION 18. TERMINATION The City may terminate this contr��ct in whole or in part, in accordance with 24 CFR 85.43 and i�his Section. In the even.t CHDO materially fails as determi:ned by City, to comply with any term of this contract, whether stated =in a. Federal statute or regulation, an assurance, i:n a Cit�y Flan or application, a notice of award,. or elsewhere, Cit�y may t�ake one or more of the following actions: l, Temporarily withhold ca:�h payments pending correction of the deficiency by CHDO o:r take more severe enforcement action against CHDO. 2. Disallow all or p��rt of the cost of the activity or act:ion. not in compliance. 3, Withhold further ]�OME a�vards from CHDO. 4. Take other remedies that; may be legally available as determined by the City, to romply with the terms of this contract, City may terminat�� this contract for convenience in accordance with 24 CFR 85.4-4. Th_Ls contract may be termina.ted at any time when both parties agree t=hat the continuation of the performances would not prod,ace beneficial results commensurate with further expenditure of funds.. Termination shall occur 30 days after the parties agrea_ to te�rminate. The CHDO shall not incur any new obligations o�ce an agreement to term.inate is reached and shall cancel a11 outst=anding obligations. The CHDO will be reimbursed for expe�nses incurred to the date of termination provided grant funds ��re 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 re:ndered under this contract, subject to the following co:nditions and limitations: 1. CHDO shall have a:n audit� made in accordance with 24 CFR Part 44, or OMB Circular A for any of its fiscal years included within the contract period specified in Section 2 of this contract in which the CHDO receives more than $25,000 in Federal financial assistanca prov:ided by a Federal agency in the form of grants, contracts, loans, loan guarantees, property�, cooperative agreements, int�rest subsidies, insurance or direct appropriations, but does not include direct federal cash assistance to individuals. The tE.rm includes awards of Fec�eral financial assistance receiv�ed dirE�ctly from federal agencie:s, or indirectly through other units of State and local governmer.�t; 2. At the option of CHDO E�ach� audit required by thi.s section may cover either CH:DO' entire operations or each department, agency, or esta:blishmE�nt of CHDO which receivec�, expended, or otherwise administerE=_d 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 ��udit services properly allocable to the activities funded by City under this contract, provi�ed however that City :�hall riot make payment for the cost of such audit services until C:ity ha:� received such audit report from CHDO; 4, Unless otherwise specif�Lcally authorized by City in writing, CHDO shall submit �he report of such audit to City within thirty (30) days after completion of the audit, but no later than one (1) year aftE�r the end of each fiscal period. included within the period of thi:� contract. Audits performed under Subsection A of this �3ectiori 19 are subject to review and resolution by City or its a�athori:;ed representative. 5. As a part of its <�udit, CHDO shall verify expenditures according to the Budget att<�ched ��s Exhibit B. B. Notwithstanding Subsection A of this Section 1.9, City reserves the right to condurt an annual financial and compliance audit of funds raceived and performances rendered under th�s contract. CHDO agrees to permit City or its authorized representative to audit. CHDO's records and to o��tain any documents, materials, o:r info��mation necessary to facilitate such audit. C. CHDO understands and a!�rees t:hat it shall be liable tc� City for any costs disallowed pu:rsuant to financial and complian.ce audit ( s) of funds received �under t�his contract . CHDO furth.er understands and agrees that reimbursement to City of such disallowed costs shall be p;aid by CHDO from funds which weY�e not provided or otherwise made �availak�le to CHDO under this con.tract. D. CHDU shall take all ne�cessar�,r actions to facilitate th�.e performance of such audit or audii:s conducted pursuant to t.his Section 19 as City may require of CHDO. E. All approved HOME audit repo�rts shall be made availabl.e for public inspection within 30 days ��fter completion of the aL�dit. SECTION 20. ENVIRONMENTAL CLEARANCE REQUIREMENTS A. CHDU understands and agrees i�hat. by execution of this contract CHDO shall be responsiblE� for providing to City al.l information, concerning this HOME funded project, required for City to meet its responsibilities for environmental 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 understancls and agrees that CHDO shall make all rE�asonable efforts to assi�;t City in handling inquiries and complaints from persons and agenc�ies seeking redress in relation to emsironmental reviews covere�d by approved certifications. SECTION 21. LABOR STANDAR A. Davis-Bacon wage Rates. All laborers and mechanics e�iployed in the rehabilitation of a projecl� assisted under this cont.ract shall be paid wages at rates not :Less than those prevailinc� on similar rehabilitation in t:his locali.ty, if such a rate cat,egory exists, or the appropriate rate as determined by the Secret.ary of Labor in accordance with the Davi:�-Bacon Act (40 U.S.C. 27Ea-5), and contracts involving their emp:Loyment shall be subject t.o the provisions, as applicable, �of the Contract Work Hours and �,afety Standards Act (40 U.S.C. 327 Construction contractor�; and subcontractors, must comply with :reg�lations issued under t.hese Acts and with other federal laws <�nd regulations pertainir.�g to labor standards and HUD Han�3book :L334.1 (Federal Labor Star.�dards Compliance in Housing and C��mmunil�y Development Programs), as applicable. B. Copeland Anti-Kickback Act. CHDO shall comply with a.11 applicable regulations of t:he Sec�retary of Labor, United St.ates Department of Labor, made p�ursuanl= ta the so-called "Copela.nd Anti-Kickback Act" of June 13, 19:34, (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 cau��e appropriate provisions to b� inse�rted in any contracts or subcontracts pursuant to the perf<�rmances under this contra.ct to ensure compliance therewith by all contractors and subcontractors thereto. SECTION 22. SPECIAL CONDI'.�IONS A. Cittr shall not release any funds for costs incurred by� CHDO under this contract until City has received certification from CHDO t.hat its f iscal contrc�l and fund accounting procedure:� are adeqLiate to assure proper d'.isbursal of and accounting for j°unds provided under this contract. City shall specify the contE�nt and form of such certification. B. R.epayment. CHDO agrees that all repayments, incluciing all i.nterest and other retu.rn on the investment of HOME fuizds will be made to City. City reserves the right to permit CFiDO to retai.n interest or return on investment of HOME funds for addit.ional eligible activities by the CHDO. C. Reversion of Assets. Upon termination of this Cont:ract, all funds remaining on hand on the date of termination, anci all accoL�nts receivable attributable to the use of funds recei�red undeY• this contract shall revert to City. CHDO shall retu�°n these: assets to City within seven (7) business days after t:he date of termination. D. Enforcement of Contract. City shall not release any funds for a.ny rosts incurred by CHDO fo:r land acquisition under t:his contr�act until City has received from CHDO a Settlement St<<tement (HUD 1) indicating the costs asso��iated with the purchase. E. Flood Insurance. City shal:l nat release any funds for any costs incurred by CHDO under this contract until City has received from CHDO proof of flood insurance pursuant to the� requirements of the National Floo�3 Insurance Act of 1968, a�s amend.ed, and the Flood Disaster ;�ct of 1973. CHDO underst:ands and agrees that by the execution ��f this contract CHDO shal.l assum.e responsibility for keeping flaod insurance in force in an amount equal to at least the pror<�ted value of the repairs to the building rehabilitated with funds under this contract. F. Displacement, Relocation, and Acquisition. CHDO must. ensure that it will not displace persons (families, busine:ss and non-profit organizations) as a re;sult. of a project assistecl with funds provided under this contracl�. SECTION 23. ORAL AND WRIT'.�EN CONTRACTS A. All oral and written c��ntraci:s between the parties to this contract relating to the su:bj ect rnatter of this contract th.at were made prior to the execution of this contract have been. reduced to writing and are contained in this contract. B. The attachments enumerated and denominated below are h.ereby made a part of this contrac�, and constitute promised performances by CHDO in accordance� with Section 3 of this contractr. l. Exhibit A, Performance :3tatement 2. Exhibit B, Budget 3. Exhibit C, Project ImplE�mentation Schedule 4, Exhibit D, Applic��ble L��ws and Regulations 5. Exhibit E, Certif:icatiorzs SECTION 24. VENUE For pu:rposes of litigation �ursuant to this contract, venue shall l:ie in Jefferson County, Te:xas. SECTION 25. ADDRESS OF N07�ICE AND COMMUNICATIONS City of I?ort Arthur Sav��nnah Housing Corporation 444 4t:h Street P. O. Box 3948 Port A.rthur, Texas 77640 Part Arthur, TX 77641 ATTN: Steve Fitzgibbons ATTP1: Sinclair Oubre City Manager Executive Director SECTION 26. CAPTIONS Each paragraph of this cont:ract h��s been supplied with a ca.ption to serve only as a guide to contents. The caption does not. control the meaning of any .paragr��ph or in any way determin�.e its interpretation or applicati��n. SECTION 27. COMPLIANCE WITH FEI)ERAL, STATE AND LOCAL LP,Ti1 CHDO sha11 comply with all Federa=l, State and local laws, statutes,, ordinances, rules, regu:Lati.ons, orders and decree:s of any court or administrative body or t.ribunal related to the: activities and performances of CHDO under this contract. U��on request by City, CHDO shall furnish �atisfactory proof of i.ts compliance herewith. APPRC�VED IN FORM : Valec�ia Tizeno, City Attorney SIGNE�D AND AGREED to on the _day of , 2010. CITY OF PORT ARTHUR By Stephen Fitzgibbons City Manager ATTEST: City Secretary SIGNED AND AGREED to on the _day of , 2010. SAVANNAH HOUSING CORPORP,TION By Sinclair Oubre Executive Director EXHIBNT "A" TO THE CpNTRACT EXHIS]:T "A" PERFORMANCE STATEMENT SAVANNAH HOUSING CORPORATION CHDO shall carry out the following activities identified in the 2011 & 2012 Federal HC�ME Program Guidelines: Savannah H;ousing Corporation shall assist in carrying out the m:�ssion of the City of Port Arthur Community Development Department to eliminate blight, pr�ovide decent, safe, sanitary and affordable housing fc�r low and moderate income persons/families (800 ]KFI) within the City of Pc�rt Arthur. Savannah H:ousing Corporation will work with The Tejano Center tc> facilitate the First Time Homebuyer Program which will include homebuyer oz-ientation and education classes, credit and budg�=t workshops, one on one c:ounseling, pre-�urchase and post-purchase counsel:ing. Savannah Housing Corporation will provide a qualified buyer. The ��ity of. Port Arthur Housing and Ne:ighborhood Revitalization Department will also work closely with Savannah H��using Corporation to assi.st with prov.iding l.ow and moderate income firs1t time homebuyers. Savannah Housing Corporation shall wor:k closely with DSW Homes, LLC to prov:ide construction of the four (4) hc�mes in the 1100 Block of 5 Street that will be :L200 sq. ft. to 1400 sq. :Et. for low and moderate i.ncome person/families. Savannah Housing Corporation, will work closel.y with Tejano Center to ensure qualified buye:rs are aware of and have a.ccess to the new home ronstructed in the City by Savannah Housing Corpora�tion. In addition, =unds are being provided 1�o assist with the construction costs in the total amount of $150,000 is being provided as delineated in Exhibit "`B" from Federal HOME Program. Savannah Housing Corporation shall uti:Lize the HOME Program CHDCi Set-aside funds for eligible CHDO activiti�s. It is further understood that any costs above the contract amour.�t incurred by the Savannah Housing Corporation fo�r these activities shall ��e paid for with private or other funds. All costs delineated are subject to Federal Statutes, Code of Fe.deral Regulations and HUD Guidelines a,s to CHDO activities and shall n.ot exceed said guidelines, and any provisi��ns of fees in excess thereof ar•e void. Prior to the implementation of construc:tion, the location of the homes to be constructed, the certification of e�Ligibility of the buyers, all financing, lien documents and a1:1 housE, plans shall be reviewed and approved by the City of Port Art]zur. �?urthermore, all homes shall have a ten ;10) year builders warranty on the foundation, two (2) year warranty on the mechani��s and one (1) year w��rrant�r on. the workmanship. The necessary precautions including retainages and applicable bonds wi.11 be obtained from contractors as to ensure performance and avoid liens. EXHIBIT "B" TO THE CqNTRACT EXHIBIT "B" BUDC;ET SAVANNAH HOUSING CORPORATION New constx�uction Activities (four (4) homes) $150,000 Grand Tota.l shall not to exceed $150,000 Down payme:nt and closing costs assista:nce in the amount of $20,C)00 will be provided ��y the City. EXH I BIT "C" TO THE CC�NTRACT EXHIBIT "C" Project Implementation Schedule Savannah Housirig Corporation CON'TRACT STP,RT DATE: CONTRACT ENDING DATE: January 5, 2011 January 4, 2012 Honte Buyer Act:ivities 1 2 3 4 5 6 7 8 9 10 11 12 Identify Participants Evaluate Homeownership Barriers Case Management Access Conventional Mortgage Resources Pre & Post Purchase Counseling Site Clearance, Site Development, Construction Activities EXHIBIT "D" TO TH E CO NTRACT EXHIBI'.0 "D" The Applicable Law:s and Regulations CHDO sha1:1 comply with all fed�ral, :�tate, and local laws and regulati��ns applicable to the activit;ies and performances rendered by CHDO und��r this contract including but not limited to the laws, and regulati��ns specified in Section I through IV of this Exhibit D. I. CIVIL RIGHTS The :Eair Housing Act (42U.S.C. 3601-20) and implementing regulations at 24 CFR part 10; Execut:ive Order II063, as amended by Executive Order 11063, as amended by Executive Order 12259 (3 CFR, 1958-1963 Comp., 652 and 3CFR, 1980 C,omp., p. 307) (Equal Opportunity in Housing and implementing regulatic�ns at 24 CFR, Part 107; and title VI of the Civil Rights Act; of 1964 (42 U.S.C. 2000d.) (Nondiscr.imination on Federally Assi;�ted. Programs) and implementing regulations issued at 24 CFR, Part l;; Exec�ut�ve Order 11063, as amendE�d by Executive Order 12259, and 24 CFR part 10?, "Nondiscrimination and Equal Opportunity in Housing under Executive order 11063 or :24 CFR,, Part 107 shall be a pro��er basis for the imposition of sanction� spec_�fied in 24 CFR 107.60; The prohibition against discrim=Lnation on the basis of ag�e under the Age Discrimination Act of 1975 (42 U.S.C. 6101 and implementing regulations t 24 �^FR, P��rt 146, and the prohibit.ions against discrimination against handic�apped individuals under S'�ection 504 of the Rehabilitation Act of 197:3 (29 U.S.C. 794) and impl.ementing regulations at 24 CFR, Part 8; The requirements of Executive 0=rders 1246 (3 CFR 1964-65, Comp., p. 339) (Equal Employment Opportunity) and the implementing re:gulations issued at 4I CFR, Chapter 60. The requirements of Executive O:rders 11625 and 12432 (cor.icerning Minority Business Enterprise), and 12138 (concerning Women's F4usiness Enterprise). Consistent with HUD's r��sponsibilities under thes:e Orders, each ap�licant must make efforts to encaurage the use of minor.ity and women's business enterprises in connection with HOME funded ac:tivities. Each Contractor must prescribe proc��dur.es acceptable to the .>tate to establish activities to ensure the i.nclusion, to the maximum e:xtent possible, of minorities and women, a:nd entities owned by minoz�ities and wo�nen. The Contractor/Subcontractor will be required to ident;ify contracts wnich have been bid by min��rity owned, women owned, and/or small disadvantaged businesses. The� Age Discrimination Act of 1975 (42 U.S.C., Section 6]_Ol et seq.); �'�ection 504 of the Rehabilitation Act of 1973 (29 U.S.C:., Section 794) and "Nondiscrimination :Based on Handicap in Federally-Assisted Programs and Acti of the Department c>f Housing and Urban development", 24 CFR, Part 8. By signing this contY•act, Contractor understands and agrees th��t the activities funded rierein shall be operated in accordance with 24 CFR, Part 8; and the Architectural Barriers Act of 1968 (42 LT.S.C., Section 4151 et.. seq.), including tlze use of a telecommunica1�ions device for deaf pe:rsons (TDDs) or equally effective communic<�tian system. I2. LEAD-BASED PAINT Title =LV of the Lead-Based Paini� Pcisoning Prevention Act. (42 U.S.C. Sec. 4831). III. ENV'IRONMENTAL STANDARDS Environmental Review Procedures for• Title I Community Dev�elopment Block Grant Programs, 24 CFR P�rt 58, a� amended in 47 Fed. Re:g. 15750 (April 12, 1982); National Historic Preservation ��ct of 1966 (16 U.S.C. Sec�. 470 et seq.) and 40 CFR Parts 1500-1508; The :[Vational Historic Preservat:ion Act of 1966 (16 U.S.C. Sec. 470 et seq.) as amended; particularly Sectian 106 (16 U.S.C. Sec. 470f); Executive Order 11593, Pr�tectic�n and Enhancement of the Cultural Environment, May 13, 1971 (36 Fed. RESg. 8921), particularly Se:ction 2 ���) ; The Reservoir Salvage Act of 19E;0 (16 U.S.C. Sec. 469 et seq.), particularly Section 3(16 U.S.C. Sec�. 469a as amended by the arrheological; and Historic Preservation� Act of 1974; Flood Disaster Protection Act o:E 1973, (42 U.S.C. Sec. 4C�01 et. seq.) as amended, particularly Sectic�ns 102(a) and 202(a) (42 U.S.C. Sec. 4012a (a) and Sec. 4106(a); Executive Order 11988, Fl��odpla:in Management, May 24, 1977 (42 Fed. Reg. 26951), particularly Sectic�n 2(and); Executive Order 11990 Protection of Wetlands, May 24, 1977 (42 Fed. Reg. 26961), particularly Secti<�n 2 and 5; The Coastal Zone Management Act of 1972, (16 U.S.C. Sec. 1451 et seq.) as amended, particularly Sectic�n 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 amended, particularly Se:ction 1424 (e) (42 U.S.C. Sec. 300h-303(e),; The :Endangered Species Act of 1�a73, (16 U.S.C. Sec. 1531 et seq.) as amended, particularly Secti��n 7(.L6 U.S.C. Sec. 1536)); T:he 'Wild and Scenic Rivers Act c�f 1968, (16 U.S.C. Sec. 1271 et seq.) as amended, particularly Secti<�n 7(b) and (c) (16 U.S.C. Sec. 1278(b) a:nd (c)); The Clean Air Act (41 U. S. C. Sec� . 7401 et seq. ) as amende:d, particularlv Section 176 (c) an�3 (d) (42 U.S.C. Sec. 7506 (c) ar.�d (d) ); Farmlands Protection and Policy Act. of 1981, (7 U.S.C. Se:c. 4201 et. seq.) 24 CFR Part 51, Environmeni�al Criteria and Standard:�. IV. ACQUISITION/RELOCATION The Uniform Relocation Assistanc�e and Real Property Acqui.sition Poli�ies Act of 1970 (42 U.S.C., Sec. 4601 et. seq.), 49 CFR F�art 24, and 24 CFR Section 570.49a (55 Fed. Reg. 29309 (July 18, 1990)). EX H I B IT "E" TO TH E Cq NTRACT EXHIBZ:T "E" Certification Rega:rding Lobbying for Co�ntracts, Grants, Loans, ,and Cooperative Agreem,ents The undEsrsigned certifies, to the be�st ��f his knowledge and belief, that: :L. No federal appropriated fu�nds have been paid or will be paid, by or oiz behalf of the undersigned, to any person for influen��ing or attempt:�rig to influence an off.icer ar employee of any agency, a member of cong��ess, an officer or employee of congress, or an emplo�yee of a member. c�f congress in connecti_on with the awarding of any fed�=ra1 contract;, the making of any federal grant, the making of any :Eederal loan, trie entering into of any cooperative agreement, or modi:Eication of any i=ederal contract, grant:, loan., or cooperative agreemen�t. 2. If any funds other than federal appropriated funds ]zave been paid or will be paid to any pe�rson for influencing or attempt:ing to influenc:e� an officer or employee of any agency, a member of cc�ngress, an offic:er or employee of congress, or an employee of a membe=r of congres:� in connection with this federal contract, grant, loaiz, or cooperat:i.ve agreement, the undersigned shall complete and subrnit standarc� form -LLL, "Disclosur�e Form to Report Lobbying", in ��ccordance with it:> instructions. 3. The undersigned shall require that the language of t�his certific�a.tion be included in the award documents for all sub awards at all tiers (including subcontracts, sub grants, and contracts under grants, loans, and cooperative agreements) and that all CHDOs shall certify a.nd disclose accordingly. This ceY•tification is material representation of fact which re�liance was plac�ed when this transaction was made or entered into. Stzbmission of this certification is a prerequisite for making or enterinq into this tra.nsaction imposed by section 1352, Title 31, U.S. Code. Any person ��ho fails to file the require�3 certification shall be .�ubject to a civil penalty of not less than $100,000 for each such failur�e. Signed: Sinclair Oubre DATE EXHIBIT "B" AITACHMENT 1 ` ., ` t `� �' � f ` �. . - ��. ';�- .- __ - �_. ���� -- c�'i r?' r � f _ � .. -_ - - � i � 4`' /f j t�f � . � �rt r t r t h u r �/ / '�"' ,m �r/` r / 7C i"l1.1 hereby recertifies " nna1� Housin �or oration" Sava g � As a �ommunity xousing► �De�r�e t Organ�xation This certificate shall show evtdence that said organization has satisfactorily demonstrated to the Department its compliance with federal HOME Investment Partnerships Program requirements set forth at 24 CFR Part 92. The City of Port Arthur commends Savannah Mousing Corporation for its proactive involvement in establishing affordable housing for the citizens in the Port Arthur Community. �Deloris uBo66ie" 2��ince, �Kayor Steve Fitsgi66ons, C'itj► �tanager