HomeMy WebLinkAboutPR13035:BMT COMM HOUSING DEV.Memo
To:
From:
Date:
Re:
Steve Fitzgibbon$, City Manager
Da/e Watson~ Director of P/anning
Tuesday, February B, 2005
P.R. 15055
RECOHHENDAT:ION:
T recommend the City Council adopt to Proposed Resolution 13035, authorizing the execution of
a contract between the City of Port Arthur and Beaumont Community Housing Development
Organization, Inc. (BCHDO) in the amount of $357,750 for land acquisition, site clearance and
site development subsidy costs and up to $200,000 for down payment and closing costs
assistance to develop ten (10) new affordable homes for Iow and moderate income
persons/families.
BACKGROUND:
The City of Port Arthur has obligated itself to fulfill the statutory Federal HOME requirement of
allocating fifteen percent (15%) of its annual HOME Program funds for eligible CHDO Set-a-side
activities.
Beaumont Community Housing Development Organization, ]nc. (BCHDO) is a Texas non-profit
corporation and a Certified Community Housing Development Organization (CHDO) that
provides housing assistance to Iow and moderate-income persons/families. BCHDO will use
the 15% CHDO Setaside Federal HOME Program funds to assist in carrying out the mission of
the City of Port Arthur Housing Assistance Programs to eliminate blight, provide decent, safe,
sanitary and affordable housing for iow and moderate-income persons/families within the City of
Port Arthur.
BCHDO will acquire land, perform site clearance and construct ten (10) new homes for Iow and
moderate income persons/families in the next twelve months.
BCHDO will work closely with Savannah Housing Corporation to insure qualified buyers are
aware of and have access to new homes constructed in the City by BCHDO.
Savannah Housing Corporation will facilitate the First Time Homebuyer Program which will
include homebuyer orientation and education classes, credit and budget workshops, one on one
counseling, pre-purchase and post-purchase counseling. Savannah Housing Corporation will
provide a minimum of ten (10) qualified buyers.
Down payment and closing costs assistance of up to $20,000 per location, (up to $17,000 to
assist with down payment and $3,000 to assist with closing costs), shall be provided by the City
of Port Arthur, based on actual need and shall not to exceed a total amount of $200,000.
BCHDO has obligated itself to provide an additional $2,500 per location to assist with closing
costs, not to exceed a total amount of $25,000.
BUDGETARY/FISCAL EFFECT:
Funding will be provided by the Federal HOME Program CHDO Setaside funds.
STAFFING/EHPLOYEE EFFECT:
Housing Administration staff will be responsible for administering the contract with BCHDO.
SUMMARY:
I recommend the City Council to adopt Proposed Resolution 13035, authorizing the execution
of a contract between the City of Port Arthur and Beaumont Community Housing Development
Organization, Inc. in the amount of $357,750 for land acquisition, site clearance and site
development subsidy costs and up to $200,000 for aown payment and closing costs.
Per Resolution No. 05-005, the City authorized Savannah Housing Corporation to administer
the First Time Homebuyer Program at $qq,695.
P.R. 13035
02-08-05 E)W/Housing
RESOLUTION NUMBER
A RESOLUTION AUTHORIZING THE EXECUTION OF A
CONTRACT BETVVEEN BEAUMONT COMMUNITY HOUSING
DEVELOPMENT ORGANIZATION, INC. AND THE C1-FY OF PORT
ARTHUR IN THE AMOUNT OF $357,750 FOR LAND ACQUISITION,
S]-FE CLEARANCE AND SITE DEVELOPMENT SUBSIDY AND UP TO
$200,000 FOR DOWN PAYMENT AND CLOSING COSTS ASSISTANCE
TO CONSTRUCT TEN (10) NEVV HOMES FOR LOW TO MODERATE
INCOME PERSONS/FAMILIES IN THE CITY.
WHEREAS, Beaumont Community Housing Development Organization, Inc. (herein
after referred to as "BCHDO") was chartered as a Texas non-profit corporation to provide safe,
decent, sanitary and affordable housing to the Iow and moderate income families; and,
WHEREAS, the Department of Housing and Urban Development awards Federal
HOME Program funds to the City annually, pursuant to the Housing and Development Act of
1974 for the primary benefit of Iow and moderate income persons/families; and,
WHEREAS, the City Council, by its adoption of Resolution Number 00-76,
(authorizing submission of a 2000 Consolidated Plan) the City has obligated itself to provide
direct financial assistance for homeownership to Iow and moderate income persons/families;
and,
WHEREAS, under the terms of the grant, the City is to review the requests for the
disbursement of funds to the Beaumont Community Housing Development Organization, Inc. in
the amount of $357,750 for land acquisition, site clearance and site development subsidy and
up to $200,000 for down payment and closing costs assistance; and,
WHEREAS, activities undertaken by the Beaumont Community Housing
Development Organization, Inc. must principally benefit Iow and moderate income
persons/families as has been determined by the parties and is established under the guidelines
of the Housing and Community Development Act of 1974, as amended; therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR:
THAT the City Manager is authorized to execute a contract with Beaumont
Community Housing Development Organization, Inc. in the amount of $357,750 for land
acquisition, site clearance and site development subsidy and up to $200,000 for down payment
and closing costs assistance as outlined herein and further described in the attached contract
marked Attachment 1; and,
THAT a copy of the caption of this Resolution be spread upon the minutes of the
City Council.
READ, ADOPTED AND APPROVED this day of
A.D., 2005 at a Regular Heeting of the City Council of the City of Port
Arthur, Texas by the following vote: AYES: MAYOR
COUNCILMEMBERS
NOES:
MAYOR
A~E~:
APPROVED FOR AVAILABILI-I'Y OF
FUNDS:
CITY SECRETARY
DIRECTOR OF FINANCE
APPROVED FOR FORM:
CiTY A'I-rORN EY
APPROVED FOR ADMINISTRATION:
CITY MANAGER
DALE WATSON, DIRECTOR
PLANNING & COMMUNEFY DEVELOPMENT
AI'rACHMENT ~l'
CITY OF PORT ARTHUR
CONTRACT FOR A
COMMUNII'f HOUSING DEVELOPMENT ORGANI/.ATION
STATE OF TEXAS n
COUNTY OF JEFFERSON n
SECTION 1. PARTIES TO THE CONTRACT
This con~rac~ and agreement is maae and entered into Dy ano
between the CiTy of Port Arthur, Texas (hereinafter calleo the
"City") acting herein by ~ts Mayor aha City Manager, duly
authorized Dy Resolution of the City Council of the City of Port
Arthur and the Beaumont Community Housing Development
Organization, Inc., BCHDO, (hereinafter called "CHDO") Jefferson
County, Texas. The parties hereto agree, by the execution
hereof, that they are bound to the mutual obligations and to the
performance and accomplishment of the tasks described herein.
WITNESSETH THAT:
WHEREAS, the CHDO operates as a Texas non-profit
corporation that is organized to assist low income individuals
and families achieve the American dream of Homeownership; and,
WHEREAS, the Department of Housing and Urban
Development annually award HOME Program funding to the City,
pursuant to the Housing and Development Act of 1974, as amended
(hereinafter called the "grant"); and,
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 contract must principally be of direct benefit to low and
moderate income persons 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, The Parties hereto do mutually agree as
follows:
SECTION 2.
CONTRACT PERIOD
This contract and agreement shall commence on March 2, 2005 and
shall terminate on March 1, 2006, unless otherwise specifically
provided by the terms of this contract.
SECTION 3.
CHDO'S PERFORMANCE
The CHDO shall acquire land, perform site clearance and construct
ten (10) new homes with projected sales prices of $70,000 to
$85,000 and house plans of 1200 sq. ft. to 1400 sq. ft. in the
next twelve (12) months for low and moderate income
persons/families from the First Time Homebuyer Program
facilitated by Savannah Housing Corporation. The homebuyer will
be required to maintain the property as their primary residence
for the applicable period of affordability, or the City will
recapture a prorated sum of the funds invested. The First Time
Homebuyer Program includes homebuyer orientation and education
classes, credit and budget workshops, one on one counseling, pre-
purchase and post-purchase counseling. Savannah Housing
Corporation will provide BCHDO ten (10) qualified buyers.
Savannah Housing Corporation will work closely with Beaumont CHDO
to insure qualified buyers are aware of and have access to new
homes constructed in the City by BCHDO. In addition, to the land
acquisition, site clearance and site development subsidy expenses
in the amount of $357,750 being provided as delineated in Exhibit
"B" from Federal HOME Program funds; down payment and closing
costs assistance of up to $20,000 per location, (up to $17,000 to
assist with down payment and $3,000 to assist with closing costs)
will also be provided for a maximum amount of $200,000. BCHDO
has obligated itself to provide an additional $2,500 per location
to assist with closing costs.
In the event Savannah Housing Corporation does
eligible buyers, BCHDO will have the option to
eligible buyers.
not provide
locate and certify
The CHDO 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 Exhibit C; the
Applicable Laws and Regulations, hereinafter called Exhibit D;
the Certifications, hereinafter called Exhibit 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 in this
contract. It shall be CHDO's responsibility to furnish its own
accounting services including clerical, statistical, bookkeeping
for expenditures made by CHDO in performance of the obligations
herein.
SECTION 4.
CITY'S OBLIGATIONS
A. Measure 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 reasonable costs incurred by the CHDO
during the contract period for performances rendered under this
contract by CHDO, subject to the limitations set forth in this
Section 4.
1. It is expressly understood and agreed by the parties
hereto that City's obligations under this Section 4 are
contingent upon the actual receipt of adequate federal funds to
meet City's liabilities under this contract. If adequate funds
are not available to make payments under this contract, City
shall notify CHDO 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 CHDO under
this contract.
2. City shall not be liable to CHDO for any costs incurred
by CHDO, or any portion thereof, which has been paid to CHDO or
is subject to
is subject to
or CHDO.
payment to CHDO, or has been reimbursed to CHDO or
reimbursement to CHDO by any source other than City
3. City shall not be liable to CHDO for any costs incurred
by CHDO or for any performances rendered by CHDO which are not
allowable costs as set forth in Section 6 of this contract. City
assumes no responsibility to reimburse CHDO for any unauthorized
expense incurred nor shall CHDO create any deficit in the name of
City nor shall CHDO assign any payment aue from City to any o~ner
party.
4. City shall only disburse funds to CHDO uoon receipt of
invoices from SuPPliers or contractors or otner evidences
approved by City's Housing Assistance staff. These invoices must
be in accordance with Exhibit B of this contract.
5. City shal' nos be -iable to CHDO for any costs incurred
by CHDO for any performances rendereG Dy CHDO which are not
strictly in accoroance with the terms of this con~rac~, including
the terms of Exhibit A, Exhibit B, Exhibit C, Exhibit D, and
Exhibit E of this Contract.
6. City shall not be -iable for costs ~ncurred or
performances rendered by CHDO before commencement of this
contract or after termination of this contract.
B. Limit of Liability
Notwithstanding any other provision under this contract, the
total of all payments ana o~ner obligations incurred Dy City
under this contract sba'' not exceed ~ne sum of Three Hundred
Fifty Seven Thcusanm Seven Hunored Fifty and No/lO0 Dollars
($357,750.00) for land acouisition, site clearance and site
development subsidy and Two Hundred Thousand ana No/lO0 Dollars
($200,000) for down oaymen~ ana closing costs assistance.
SECTION 5.
DISBURSEMENT OF FUNDS
A. City will reimburse eligible costs incurred under this
contract in accordance with the requirements of 24 CFR 570. CHDO
may not request disbursement of funds under this contract until
the funds are needed for payment of eligible costs. The amount
of each request must be limited to the amount needed.
B. It is expressly understood and agreed by the parties hereto
that payments under this contract are contingent upon CHDO's full
and satisfactory performance of its obligations under this
contract. City reserves the right to 'recapture funds provided
under this contract in the event that CHDO has been unable to
co'mmit 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. City will release funds for
time an invoice is presented by
line item listed in Exhibit B.
pre-development activities at the
CHDO for each pre-development
F. It is expressly understood and agreed by the parties hereto
that any right or remedy provided for in this Section 5 or in any
other provision of this contract shall not preclude the exercise
of any other right or remedy under this contract or under any
provision
any right
remedies.
shall not
any other
of law, nor shall any action taken in the exercise
or remedy be deemed a waiver of any other rights or
Failure to exercise any right or remedy hereunder
constitute a waiver of the right to exercise that or
right or remedy at any time.
of
SECTION 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, any unused funds and any income derived specifically
from the use of HOME funds by CHDO. Income to CHDO, which is
generated as a result of CHDO's 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
pursuan~ to 24 CFR Part 570.
A-122
SECTION 7. RETENTIO1, AND ACCESSIBILITY OF RECORDS
A. CHDO must establish and maintain sufficient recoras, as
determined Dy City, ~0 account for the exdenditure and use of
HOME funds.
B. CHDO shal' give the City, the Comotroller of tne United
States, or any of thei" duly authorized representatives, access
to an~ the right to examine al~ books accounts, records, fedoras,
files and o~ner papers, things or property belonging to or =n use
by CHDO pertaining to this contract. Such rights to access
shal' continue as long as the records are retained Dy CHDO. CHDO
agrees to maintain sucn records ~n an accessible location.
C. All records pertinent To this contract shall be retainea by
CHDO for three years following the date of ~ermination of this
contract or submission of ~ne final close-out reporT, whichever
is -a~er, with the roi-owing exceptions:
1. If any litigation, claim or audit ~s started before the
expiration of tne tnree year oerioo and extenos De~'ona ~ne tnree
year perioa, tne recoros wi-- De maintained until all -itigation,
claims or audit findings involving ~ne records nave been
resol ve~.
2. Records relating to real proper~y acquisition or long
term lease shal- be retainee for a oerioo equal to the useful
life of any repairs made with HOME funds.
SECTION 8. qEPORTING REQUIREMENTS
A. CHDO shall submit to City sucn reoorts on the operation ana
performance of this contract as may De requirem Dy City
=ncluding but not limiteG go tne fedoras sDecified ~ this
Section 8. CHDO shal~ provide City with all reports necessary
foF City's compliance with 24 CFR Part 570.
B. In addition to the limitations on liability otherwise
specified in this contract, it ~s exoressly uneers~ooe ane agreed
Dy the oarties hereto that ~f CHDO fails to submit :o City in a
timely and satisfactory manner any reoort required by this
contract, City may, a~ ~ts sole discretion, withhold any or all
payments otherwise oue or reouestea by CHDO nereuneer. If City
withholds such oayments, ~t shal- notify CHDO in writing of its
decision and the reasons therefore. Payments ~ithheld pursuan~
to this oaragraon may De hele Dy City until sucn time as tne
del~neuent obligations for whicn funds are withhele are fulfilled
by CHDO.
SECTION 9. MONITORING
The City reserves the right to, from time to time, carry out
fiela insoections to ensure compliance with the reauirements 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 the 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 17 and 18 of this contract.
SECTION 10.
INDEPENDENT CONTRACTOR
It is expressly understood and agreed by the parties hereto that
City is contracting with CHDO as an Independent Contractor, and
that CHDO, as such, agrees to hold City harmless and to indemnify
City from and against any and all claims, demands, and causes of
action of every kind and character which may be asserted by any
third party occurring or in any way incident to, arising out of,
or in connection with the services to be performed by CHDO under
this contract. CHDO shall present proof of Directors and Officers
Insurance.
SECTION 11.
SUBCONTRACTS
A. Except for 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 Eligibility Form,
as specified by City, for each proposed subcontract, and CHDO has
obtained City's prior written aooroval, based on the information
submitted, of CHDO's intent ~o enter into sucn Drooosea
subcontract. CHDO, in subcontracting for any performances
aescribed ~ this contract, exoressly unaerstands that in
entering into sucn SUbContracts, City =s ~ no way liable to
CHDO's SUbContractor(s).
B. tn no evens shall any provision of this Section 11,
specifically ~ne reouirement that CHDO obtain City's prior
written approval of a SUDcontractor's eligibility, be cons~rJed
as relieving CHDO of the res~onsibi"=~y for ensuring ~nat tne
performances renmerea under all suoccntracts are renmerem so as
to comply with ali terms of this contract, as == sucn
performances rendered were renoereo Dy 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 the 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, regulations, 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 exercised
any functions or responsibilities with respect to activities
assisted with funds provided under this contract or (2) who is in
a position to participate in a
inside information with regard
personal or financial interest
activity, or have an interest i
agreement (or proceeds thereof)
activity either for themselves
decision making process or gain
to such activities may obtain a
or benefit from a HOME assisted
n any contract, subcontract, or
with respect to a HOME assisted
or those with whom they have
family or business ties, du~ing their tenure or for one year
thereafter. CHDO shall ensure compliance with applicable
provisions under 24 CFR 85.36 and OMB Circular A-110 in the
procurement of property and services.
SECTION 13. NONDISCRIMINATION AND SECTARIAN ACTIVITY
A.Equal Opportunity. CHDO shall ensure that no person shall on
the grounds of race, color, religion, sex, handicap, familial
status, or national origin be excluded from participation in, be
denied the benefits of, or be 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
Act of 1968 (12 U.S.C. 1701u) that:
1. To the greatest extent feasible, opportunities for
training and employment arising in connection with the planning
and carrying out of any project assisted with HOME funds provided
under this contract be given to 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 project be awarded to
business concerns, including, but not limited to, individuals or
firms doing business in the field of planning, consulting,
design, architecture, building construction, rehabilitation,
maintenance, or repair, which are located in or owned in
substantial part by persons residing in the City of Port Arthur.
B. Religious Organizations. Funds provided under this
contract may 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 provioea ~r Section 22 of this contract. The completed
housing or nonresidential building(s) must De useo exclusive~ by
the owner entity for secular DUrDOSeS ano mus~ De available to
all persons regardless of religion. There must De no religious or
membership criteria for either tenants or users of ~ne property
as sDecifiea in 24 CFR 92.257 ana 24 CFR Part 570.
SECTION 14. LEGAL AUTHORITY
A. CHDO assures ana guarantees that CHDO oossesses legal
authority to enter into this contract, receive funds authorize~
by this contract, and to perform the services CHDO nas 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, no 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 terminate 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 in writing of 1) any
action, including any proceeding before an administrative agency
filed against CHDO in connection with this contract; and 2) any
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
pertinent 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 States
Department of Housing and Urban Development by the City of Port
Arthur with regard to the operation of the City's HOME Program.
Based on these considerations, and in order to ensure the legal
and effective performance of 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 Program 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 binding upon
CHDO, as if written herein, provided however that said policy
directives and any amendments to the City's HOME Program shall
not alter the 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 automatically incorporated into this
contract without written amendment hereto, and shall become
effective on the date designated 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, 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.
TERMINATION
The City may terminate this contract in whole or in part, in
accordance with 24 CFR 85.43 and this Section. In the event CHDO
materially fails as determined by City, to comply with any term
of this contract, whether stated in a Federal statute or
regulation, an assurance, in a City plan or application, a notice
of award, or elsewhere, City may take one or more of the
following actions:
1. Temporarily withhold cash payments pending correction
of the deficiency by CHDO or take more severe enforcement action
against CHDO.
2. Disallow all or part of the cost of the activity or
action not in compliance.
3. Withhold further HOME awards from CHDO.
4. Take other remedies that may be legally available as
determined by the City, to comply with the terms of this
contract, City may terminate this contract for convenience in
accordance with 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 expenditure of funds. Termination shall occur 30
days after the parties agree to terminate. The CHDO shall not
incur any new obligations once an agreement to terminate is
reached and shall cancel all outstanding obligations. The CHDO
will be reimbursed for expenses incurred to the date of
termination provided grant funds are available.
SECTION 19. AUDIT
A. Unless otherwise directed by City, CHDO shall arrange for
the performance of an annual financial and compliance audit of
funds received and performances rendered under this contract,
subject to the following conditions and limitations:
1. CHDO shall have an audit made in accordance with 24 CFR
Part 44, or OMB Circular A-110 for any of its fiscal years
included within the contract period specified in Section 2 of
this contract in which the CHDO receives more than $25,000 in
Federal financial assistance provided by a Federal agency in the
form of grants, contracts, loans, loan guarantees, property,
cooperative agreements, interest subsidies, insurance or direct
appropriations, but does not include direct federal casn
assistance to individuals. The Term ~ncluoes awaros of Federal
financial assistance received directly from federal agencies, or
indirectly through other units of State ano local government;
2. At the option of CHDO, eacn audit reouired by this
section may cover either CHDO's entire operations or eacn
department, agency, or establisnmen~ of CHDO which received,
expended, or otherwise administered federal funds;
3. Notwithstanding Section 4(a)(4) ana Section 4(a)(5),
CHDO shall utilize funds budgeted unoe" this contract to oay for
that portion of the cost of such audit services properly
allocable to the activities funded Dy City unoer this contract,
provided however that City shall not make payment for the cost
such audit services until City nas received sucn audit repor~
from CHDO;
of
'4. Unless otherwise specifically authorized by City in
writing, CHDO shall submit the report of such audit to City
within thirty (30) days after completion of ~ne audit, but no
later than one (1) year after the eno of each fiscal period
included within the period of this contract. Audits Derformea
under Subsection A of this Section 19 are subject to review and
resolution by City or its authorized reDresentative.
5. As a part of its audit, CHDO shall verify exoenditures
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
authorized 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
performance of such audit or audits conducted
Section 19 as City may require of CHDO.
facilitate the
pursuant to this
E. All approved HOME audit reports shall be made available for
public inspection within 30 days after completion of the audit.
SECTION 20.
ENVIRONMENTAL CLEARANCE REQUIREMENTS
A. CHDO 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 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 understands and
agrees that CHDO shall make all reasonable efforts to assist City
in handling inquiries and complaints from persons and agencies
seeking redress in relation to environmental reviews covered by
approved certifications.
SECTION 21.
LABOR STANDARDS
A. Davis-Bacon Wage Rates. All laborers and mechanics employed
in the rehabilitation of a project assisted under this contract
shall be paid wages at rates not less than those prevailing on
similar rehabilitation in this locality, if such a rate category
exists, or the appropriate rate as determined by the Secretary of
Labor in accordance with the Davis-Bacon Act (40 U.S.C. 276a-5),
and contracts involving their employment shall be subject to the
provisions, as applicable, of the Contract Work Hours and Safety
Standards Act (40 U.S.C. 327-333~. Construction contractors and
subcontractors, must comply with 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. Copelano Anti-Kickback Act. CHDO shall comply with all
aPPlicable regulations of ~ne Secretary of Labor, Uni~eo States
Deoar~men~ of Labor, maoe pursuan~ ~o one so-calleo "Copeland
Anti-Kickback Act" of June 13, 1934, (48 Stat. 948:62 Stat. 862;
Title U.S.C., Section 874; ano ~tle 40 U.S.C., Section 276 C),
and any amenomen~s or modifications ~nereof, ano shal- cause
appropriate provisions to De inserted in any contracts or
subcontracts pursuant to the performances unoer this contract to
ensure compliance therewith Dy all contractors an~
SUbCOntractors thereto.
SECTION 22.
SPECIAL CONDITIONS
A. City shall not release any funds for costs incurred by CHDO
unoer this con~ract until City nas received certification from
CHDO that ~s fisca' control ano fund accounting oroceoures are
aoequa~e ~o assure proper o~sbursal of ano accounting for funds
provided unoer this contract. City shall specify ~ne content ana
form of such certification.
B. Repayment. CHDO agrees that all repayments, including
all interest and other return on ~ne ~nves~men~ of HOME funds
will De maoe to City. City reserves the right to permit CHDO to
retain interest or return on ~nves~ment of HOME funds for
additiona' eligible activities by ~ne CHDO.
C. Reversion of Assets. Upon termination of this Contract,
all funds remaining on hand on the date of termination, and all
accounts receivable attributable 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 incurred by CHDO fQr land acquisition under this
contract until City has received from CHDO a Settlement Statement
(HUD 1) indicating the costs associated with the ~urchase.
E. Flood Insurance. City shall not 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 Flood Insurance 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 funds under this contract.
F. Displacement, Relocation, and Acquisition. CHDO must
ensure that it will not 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 CONTRACTS
A. All oral and written contracts between the parties to this
contract relating to the subject matter of this contract that
were maae Drior ~o ~ne execution of this con~rac~ nave peen
reduced ~o writing ana are contained in this con~rac~.
B. The attachments enumerated ana denominated below are
maae a Dart of this contract, and constitute promisea
performances Dy CHDO =n accoraance with Section 3 of this
contract:
hereby
1. Exhibit A,
2. Exhibit B,
3. Exhibit C,
4. Exhibit D,
5. Exhibit E,
Perfcrmance Statement
Budge~
Project Implementation Schedule
Applicable Laws anG Regulations
Certifications
SECTION 24. VENUE
For purposes of 'itigation Dursuan~ to this con~rac~, venue shall
lle in Jefferson County, Texas.
SECTION 25.
ADDRESS OF NOTICE AND COMMUNICATIONS
City of Port Arthur
444 4th Street
Port Arthur, Texas 77640
Beaumont Community Housing
Development Organization,
5220 Highland Avenue
Beaumont, Texas 77705
Inc.
ATTN: Dale Watson ATTN: Antoinette Hardy
Director, Planning & Executive Director
Community Development
SECTION 26.
CAPTIONS
Each paragraph of this contract has been 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.
SECTION 27. COMPLIANCE WITH FEDERAL, STATE AND LOCAL LAWS
CHDO shall comoly with all Federal, State and local laws,
statutes, ordinances, rules, regulations, orders ana decrees of
any court or administrative DOOy or tribunal related to ~ne
activities ana oerfo.rmances of CHDO under this contract, upon
reaues~ Dy City, CHDO shall furnish satisfactory oroof of its
compliance herewith.
APPROVED IN FORM:
Mark Sokolow, City Attorney
Signed and Agreed to on the
day of
, 2005.
CITY OF PORT ARTHUR
By:
Stephen Fi~zgiDDOnS
City Manager
ATTEST:
City Secretary
Signed and Agreed to on the
.day of
, 2005.
Beau~ont Community Development
Housing Organization
By:
Antoinette Hardy
Executive Director
EXHIBIT A
Performance Statement
Beaumont Community Housing Development Organization, Inc.
CHDO shall carry out the following activities identified in the 2005
Federal HOME Guidelines:
Beaumont Community Housing Development Organization, Inc. shall assist in
carrying out the mission of the City of Port Arthur Housing
Assistance Program to eliminate blight, provide decent, safe,
sanitary and affordable housing for low and moderate income
persons/families (80% MFI) within the City of Port Arthur.
Beaumont Community Housing Development Organization, Inc. shall acquire
land within the City of Port Arthur, perform site clearance and
construct ten (10) new homes with 1200 sq. ft. to 1400 sq. ft. for
low and moderate income persons/families over the next twelve months.
Beaumont Community Housing Development Organization, Inc., will work
closely with Savannah Housing Corporation to ensure qualified buyers
are aware of and have access to new homes constructed in the City by
Beaumont CHDO. Down payment and closing costs assistance of up to
$20,000 per location, (up to $17,000 to assist with down payment and
$3,000 to assist with closing costs), shall be provided by the City
of Port Arthur, based on actual need and not to exceed a total amount
of $200,000. BCHDO has obligated itself to provide an additional
$2,500 per location to assist with closing costs, not to exceed a
total amount of $25,000.
Savannah Housing Corporation will facilitate the First Time Homebuyer
Program which will include homebuyer orientation and education
classes, credit and budget workshops, one on one counseling, pre-
purchase and post-purchase counseling. Savannah Housing Corporation
will provide ten (10) qualified buy.ers.
In the event Savannah Housing Corporation does not provide eligible
buyers, BCHDO will have the option to locate and certify eligible
buyers at no additional costs to the City.
Beaumont Community Housing Development Organization, Inc. shall utilize
the HOME Program CHDO Setaside funds for eligible CHDO activities.
It is further understood that any costs above the contract amount
incurred by the Beaumont Community Housing Development Organization,
Inc. 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 and the necessary
precautions including re~ainages ana applicable bonds wil- De
obtained from contractors as to ensure performance ana avoia "~ens.
EXHIBIT B
Budget
Beaumont Community Housing Development Organization, Inc.
It is estimated that each location shall utilize and not exceed an
amount of $6,525 for land acquisition and $29,250 for site
development subsidy activities to develop ten (10) new affordable
homes.
Down payment and closing costs subsidy assistance of up to $20,000
per location, (up to $17,000 to assist with down payment and $3,000
to assist with closing costs), shall be provided by the City of Port
Arthur, based on actual need, and shall not exceed a total amount of
$200,000 for the entire program. BCHDO has obligated itself to
provide an additional $2~500 per location to assist with closing
costs, not to exceed a total amount of $25,000.
Proposed Costs for Site Development Subsidy
Cost Plan Corners Site Soil Foundation/ Developers Total
Estimate ADoraised Located Clearance TesUna Footinos Fee
Lot 1 $300 $350 $100 $7,500 $3,000 $13,000 $5,000 $29,250
Lot 2 $300 $350 $100 $7,500 $3,000 $13,000 $5,000 $29,250
Lot 3 $300 $350 $100 $7,500 $3,000 $13~000 $5,000 $29,250
Lot 4 $300 $350 $100 $7,500 $3,000 $13,000 $5,000 $29,250
Lot 5 $300 $350 $100 $7,500 $3,000 $13,000 $5,000 $29,250
Lot 6 $300 $350 $100 $7,500 $3,000 $13,000 $5,000 $29,250
Lot 7 $300 $350 $100 $7,500 $3,000 $13,000 $5,000 $29,250
Lot 8 $300 $350 $100 $7,500 $3,000 $13~000 $5,000 $29,250
Lot 9 $300 $350 $100 $7,500 $3~000 $13,000 $5,000 $29,250
Lot 10 $300 $350 $100 $7,500 $3,000 $13,000 $5,000 $29,250
The developer's fees. ($5,000 per home), will be disbursed in two parts.
Once a certified home buyer is approved by the City of Port Arthur Housing
Assistance Division, $3,000 of the $5,000 allocation per home will be paid and
utilized for the following services:
· identifying property
· negotiating the sale of property
· communicating with the title company
· closing on the property
· pre-purchase meeting with approved buyer
The remaining $2,000 of the $5,000 developer's fee will be paid upon receipt of a
final certificate of occupancy and invoice from BCHDO.
Proposed Costs for Land Acquisition
The totalcos~forland acqu~i~onwiHnotexceed $64250
Land Appraisal Survey Title Policy/ Total
Cost Closina Fees
Lot 1 $5,000 $350 $375 $800 $6,525
Lot 2 $5,000 $350 $375 $800 $6,525
Lot 3 $5,000 $350 $375 $800 $6f525
Lot 4 $5,000 $350 $375 $800 $6,525
Lot 5 $5~000 $350 $375 $800 $6,525
lot 6 $5~000 $350 $375 $800 $6,525
Lot 7 $5,000 $350 $375 $800 $6,525
Lot 8 $5,000 $350 $375 $800 $6,525
Lot 0 $5,000 $350 $375 $800 $6,525
Lot 10 $5,000 $350 $375 $800 $6,525
Grand Total for land acquisition, site clearance and site
development subsidy activities to develop ten (10) new
affordable homes shall not to exceed $357,750
EXHIBIT C
Project Implementation Schedule
Beaumont Community Housing Development Organization,
Inc.
CONTRACT START DATE:
March 2, 2005
CONTRACT ENDING DATE:
March 1, 2006
HOME Buyer Activities i 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
Land Acquisition, Site
Clearance, Site
Development,
Construction
Activities
EXHIBIT D
The Applicable Laws and Regulations
CHDO shall comply with all federal, state, and local laws and
regulations applicable to the activities and oerformances
rendered by CHDO under this contract including out not limited
the laws, and regulations specified in Section I tnrough IV of
this Exhibit D.
~0
I. CIVIL RIGHTS
The Fair Housing Act (42U.S.C. 3601-20) and imolementing
regulations at 24 CFR part 10; Executive Croer II063, as amended
by Executive Order 11063, as amended Dy Executive Order 12259 (3
CFR, 1958-1963 Comp., 652 and 3CFR, 1980 Como., D. 307) (Eoual
Opportunity in Housing and implementing regulations au 24 CFR,
Part 107; and title VI of the Civil Rights Act of 1964 (42
U.S.C. 200Od) (Nondiscrimination on Federally Assisted Programs)
and implementing regulations issued at 24 CFR, Part 1;
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 Discrimination Act of 1975 (42 U.S.C. 6101-07) and
implementing regulations t 24 CFR, Part 146, and the
prohibitions against discrimination against handicapped
individuals under Section 504 of 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 Enterprise). Consistent with HUD's
responsibilities under these Orders, each applicant must make
efforts to encourage the use of minority and women's business
enterprises in connection with HOME funded activities. Each
Contractor must prescribe procedures acceptable to the State to
establish activities to ensure the inclusion, to the maximum
extent possible, of minorities and women, and entities owned by
minorities and women. The Contractor/Subcontractor will be
required to identify contracts which have been bid by minority
owned, women owned, and/or small disadvantaged businesses.
The Age Discrimination Act of 1975 (42 U.S.C., Section 6101
et seq.); Section 504 of the Rehabilitation Act of 1973 (29
U.S.C., Section 794) and "Nondiscrimination Based on Handicap in
Federally-Assisted Programs and Activities of the Department of
Housing and Urban development", 24 CFR, Part 8. By signing this
contract, Contractor understands and agrees that the activities
funded herein shall be operated in accordance with 24 CFR, Part
8; and the Architectural Barriers Act of 1968 (42 U.S.C., Section
4151 et. seq.), including the use of a telecommunications device
for deaf 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 for 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
Sec. 470 et seq.)
Sec. 470f);
Historic Preservation Act of 1966 (16 U.S.C.
as amended; particularly Section 106 (16 U.S.C.
Executive Order 11593, Protection and Enhancement of
Cultural Environment, May 13, 1971 (36 Fed. Reg. 8921),
particularly Section 2(c);
the
The Reservoir Salvage Act of 1960 (16 U.S.C. Sec. 469 et
seq.), particularly Section 3 (16 U.S.C. Sec. 469a-1), as amended
by the archeological; and Historic Preservation Act of 1974;
Flood Disaster Protection Act of 1973, (42 U.S.C. Sec. 4001
et. seq.) as amended, particularly Sections 102(a) and 202(a) (42
U.S.C. Sec. 4012a (a) and Sec. 4106(a);
Executive Order 11988, Floodplain Management, May 24, 1977
(42 Fed. Reg. 26951), particularly Section 2(and);
Executive Order 11990 Protection of Wetlands, May 24, 1977
(42 Fed. Reg. 26961), particularly Section 2 and 5;
The Coastal Zone Management Act of 1972,
1451 et seq.) as amended, particularly Section
U.S.C. Sec. 1456(c) and (d);
(16 U.S.C. Sec.
307(c) and (d) (16
The Safe Drinking Water Act of 1974, (42 U.S.C. Sec. 201,
300(f) et seq.), and (21U.S.C. Sec. 349) as amended,
particularly Section 1424 (e) (42 U.S.C. Sec. 300h-303(e);
The Endangered Species Act of 1973, (16 U,S.C. Sec. 1531 et
seq.) as amended, particularly Section 7 (16 U.S.C. Sec. 1536));
The Wild and Scenic Rivers Act of 1968, (16 U.S.C.
et seq.) as amended, particularly Section 7(b) and (c)
Sec. 1278(b) and (c));
Sec. 1271
(16 U.S.C.
The Clean Air Act (41U.S.C
particularly Section 176(c) and
(d));
Sec. 7401 et
d) (42 U.S.C.
~eq.) as amended,
Sec. 7506(c) and
Farmlanas Protection and Policy Act of 1981, (7 U.S.C,
4201 et. seq.) 24 CFR Part 51, Environmental Criteria ana
Standards.
Sec.
IV. ACQUISITION/RELOCATION
The Uniform Relocation Assistance and Rea- Property
Acouisition Policies Act of 1970 (42 U.S.C., Sec. 4601 et. seq.),
49 CFR Part 24, and 24 CFR Section 570.49a (55 Fed. Reg. 29309
(July 18, 1990)).
EXHIBIT E
Certification Regarding Lobbying for
Contracts, Grants, Loans, and Cooperative Agreements
The undersignea certifies, so the best of his knowleage ana
belief, that:
1. No federal appropriated funds have Deen paid or will be
paid, by or on behalf of the undersignea, so any person for
~nfluencing or a~em~ting ~o influence an offi]er or emoloyee of
any agency, a member of congress, an officer or emoloyee of
congress, or ar employee of a member of congress ~ connection
with the awarding of any federal conmract, tne making of any
federal grans, ~ne making of any federa- -oan, ~ne entering in~o
of any coaDerative agreemens, or modification of any federal
contract, grant, loan, or cooperative agreemens.
2. If any funds other ~nan federal appropriated funds have
been paid or wil- De pa~ ~o any person for influencing or
astem~ting ~o influence an officer or employee of any agency, a
member of congress, an office~ or employee of congress, or an
emoloyee of a memoer of congress i~ connection with this federal
con~ract, grant, -oan, or cooperative agreement, the un~ersigne~
shal' complete and submi~ ssanoaro form -LL_, "Disclosure Form to
Reoor~ LoDoying", in accoraance with iss instructions.
3. The undersigneo shall require that ~ne language of this
certification De inclJded in tne awaro documents for all
suDawar~s at all ~iers (including subcontracts, subgran~s, and
contracts under grants, loans, and cooperative agreements) and
that all CHDOs shall certify.and disclose accordingly.
This certification is mater~al representation of fact which
reliance was placed when this transaction was made or entered
into. Submission of this certification is a prerequisite for
making or entering into this transaction imposed by section 1352,
Title 31, U.S. Code. Any person who fails to file the required
certification shall be subject to a civil penalty of not less
than $100,000 for ea~ch such failure.
Signed:
Antoinette Hardy
DATE