HomeMy WebLinkAboutPR 18007: NEIGHBORHOOD STABILIZATION PROGRAM 1 INTEROFFICE MEMORANDUM
HOUSING AND NEIGHBORHOOD REVITALIZATION
To: Floyd T Johnson, City Manager
From: Beverly A. Freeman, Acting Director of Housing & Neighborhood Revitalization
Date: November 1, 2013
Re: P.R. 18007
RECOMMENDATION:
I recommend the City Council adopt P.R. 18007 authorizing the City Manager to
execute the Neighborhood Stabilization Program 1 — Program Income Reservation
System Participation Agreement No. 77090003154 between Texas Department of
Housing and Community Affairs, (TDHCA) and the City of Port Arthur, to support the
continuation of the activities started with NSP1 Contract No. 77090000154.
BACKGROUND:
Pursuant to Resolution 09 -457, the City of Port Arthur entered into a contract with
Texas Department of Housing and Community Affairs, (TDHCA) to implement the
Neighborhood Revitalization Program.
This Agreement is being provided as the result of TDHCA Governing Board action at
their January 17, 2013 meeting. __ _
The TDHCA Governing Board item states in part the Texas NSP1 funds were available
for the purchase, rehabilitation or new construction of single family homes and funds
were to be expended by the NSP Expenditure deadline of March 3, 2012, but all
properties were stated to not necessarily be occupied. Therefore, a continued source of
funds will be necessary to pay third -party costs required at the homebuyer closings.
These costs will generally be tied to Title and Escrow fees, insurance, appraisals and
inspections, but may be extended to repairs required to meet Housing Quality
Standards or TREC Inspection requirements. Activity Delivery charges, in the form of
staff time required to close transactions can also be budgeted.
The TDHCA board approved that funds required to close homebuyer transaction be
budgeted from available NSP Program Income and made available to current
subgrantees in good standing through a Service Agreement, the NSP1 - PI Reservation
System Participation Agreement. -
BUDGETARY /FISCAL EFFECT:
Funding will be provided by the Texas NSP1 — PI Reservation System.
STAFFING /EMPLOYEE EFFECT:
Housing Administration staff will be responsible for administering the agreement.
SUMMARY:
I recommend the City Council adopt P.R. 18007 authorizing the City Manager to
execute the Neighborhood Stabilization Program 1 — Program Income Reservation
System Participation Agreement No. 77090003154 between Texas Department of
Housing and Community Affairs, (TDHCA) and the City of Port Arthur, to support the
continuation of the activities started with NSP1 Contract No. 77090000154.
P. R. 18007
11/01/2013 BAF- Housing
RESOLUTION NUMBER
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
EXECUTE THE NEIGHBORHOOD STABILIZATION
PROGRAM 1 — PROGRAM INCOME RESERVATION SYSTEM
PARTICIPATION AGREEMENT NO. 77090003154
BETWEEN TEXAS DEPARTMENT OF HOUSING AND
COMMUNITY AFFAIRS (TDHCA) AND THE CITY OF PORT
ARTHUR, TO SUPPORT THE CONTINUATION OF THE
ACTIVITIES STARTED WITH NSP1 CONTRACT NO.
77090000154.
WHEREAS, pursuant to Resolution 09 -457, the City of Port Arthur
entered into a contract with the Texas Department of Housing and Community Affairs,
(TDHCA) to implement the Neighborhood Revitalization Program (NSP); and,
WHEREAS, the City Council authorized Amendment No. 1 to the NSP
Contract Number 77090000154 on November 2, 2010 by Resolution No. 10 -478; and,
WHEREAS, the City Council authorized Amendment No. 2 to the NSP
Contract Number 77090000154 on March 8, 2011 by Resolution No. 11 -078; and,
WHEREAS, the City Council authorized Amendment No. 3 to the NSP
Contract Number 77090000154 on September 18, 2012 by Resolution No. 12 -448; and,
WHEREAS, the Housing & Neighborhood Revitalization Division is
requesting that the City Manager be authorized to execute the NSP1 — PI Reservation
System Participation Agreement No. 77090002154 to support the continuation of the
activities started with NSP1 Contract Number 77090000154; and,
WHEREAS, this Agreement is being provided as the result of TDHCA
Governing Board action at their January 17, 2013 meeting; and,
WHEREAS, the Texas NSP1 funds were available for the purchase,
rehabilitation or new construction of single family homes but not all homes are
occupied; and,
WHEREAS, a continued source of funds will be necessary and available in
the NSP1 — PI Reservation System Participation funds to pay third party costs required
at the homebuyer closings; and,
WHEREAS, the TDHCA board approved that funds required to close
homebuyer transaction, be budgeted from available NSP Program Income, and made
available to current subgrantees in good standing through a Service Agreement, the
NSP1 — PI Reservation System Participation Agreement attached hereto as Attachment
"A "; and,
WHEREAS, the amount budgeted will be based on estimates created
from NSP records of expenses for similar programs and transactions, the percentages
established in earlier. NOFAs and Contract would no longer apply.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF PORT ARTHUR:
Section 1. That the facts and opinions in the preamble are true and
correct.
Section 2. That City Manager is authorized to execute the NSP1 — PI
Reservation System Participation Agreement No. 77090003154, in substantially the
same form as attached hereto as Exhibit "A ".
Section 3. 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., 2013 at a Regular Meeting of the City Council of the City of Port Arthur, Texas by
the following vote: AYES:
MAYOR
COUNCILMEMBERS
NOES:
DELORIS "BOBBIE" PRINCE, MAYOR
ATTEST:
SHERRI BELLARD, CITY SECRETARY
APPROVED FOR ADMINISTRATION:
FLOYD T. JOHNSON,
CITY MANAGER
BEVERLY A. FREE! , ACTING DIRECTOR
OF HOUSING & NEQ.HBORHOOD REVITALIZATION
APPROVED ( •R FORM:
"Or
VALECIA TI ENO, C TTORNE
ATTACHMENT ,,A"
TEXAS DEPARTMENT OP HOUSING AND COMMUNITY AFFAIRS
;� ;ti �: r_U,t r r. rr:+rr. {..•.:.r
BOARD) MEMBERS
J. Paul Occr, Ctxur
Rick Perry Juan S. \ftnin., Phl), 1• ii'.alir
CiovrRNoR Wit. Bingham-Et; cardio
Tom Fl. Gann
(. 11atk •lcl�r�ttcrs
Robert 1). "i9tontt'
October 28, 2013
Wilier s direct phone r; 512/475 -3726
Email; ntarnl.Itollonv Ridhc(. toie.tx.US
VIA Email to: bfrecman@portarthur.net
Floyd T. Johnson
City Manager
City of Port Arthur
444 Fourth Street, Suite 203
Port Arthur, TX 77640
RE: TEXAS NEIGHBORHOOD STABILIZATION PROGRAM
NSP1- PROGRAM INCOME RESERVATION SYSTEM PARTICIPATION AGREEMENT 77090003154
Dear Mr. Johnson:
Attached is Texas Neighborhood. Stabilization Program (NSP) NSP1- Progam Income
Reservation System Participation (RSP) Agreement No. 77090003154. The RSP Agreement will
provide for reimbursement of expenses incurred. after August 17, 2013, to close retraining homebuyer
transactions for the existing NSP -1 Contract No. 77090000154. The RSP Agreement has been executed
on-our side in order to expedite activation.
The RSP Agreement is limited to specific expenses for the listed projects, funds will not be
available for additional activities. As hotnebuyers are approved, NSP will issue the Project Cominittnent
Contract for each address, in the form attached as Exhibit A to the Agreement. Until the Project
Conm'iitment Contract is executed, funds will not be available. Please note that the RSP Agreement
does not include budget for administrative funds, these costs may be reimbursed as Activity Delivery for
the projects, so long as required documentation is provided.
Please execute and return the RSP Agreement, along with the following forms available in the
NSP Forms library Utter// wwiv. tdhca .state.tx.us /nsp /forms.htni
1. Contract System Access Request
2. Texas Direct Deposit Authorization
3. Texas Payee Identification Number Application
4. Environmental Certification of Exemption •
221 lEstet 1lth Street P.O. Box 33941 Austin, Texas 78711 -3941 (800) 525 -0657 (512) 475 -3800 I; ;;If
Texas Neighborhood Stabilization Program
October 28, 2013
Page 2
These forms are required for the new RSP Agreement, although they appear to be duplicative of
information previously provided to TDHCA.
NSP Staff will be publishing instructions in the coming week regarding accessing the RSP
Agreement funds, and will be available to provide necessary technical assistance to complete the NSP
projects.
Please feel free to contact me if you should have any questions, or require further information.
Sincerely,
Marna Holloway
Texas NSP Director
MH
TEXAS DEPARTMENT OF HOUSING COMMUNITY AFFAIRS
NEIGHBORHOOD STABILIZATION PROGRAM ONE PROGRAM INCOME ( "NSP1 -PI")
RESERVATION SYSTEM PARTICIPATION AGREEMENT
AGREEMENT # 77090003154
WITH
City of Pori Arthur,
a political subdivision of the State of Texas
CFDA 14.228 NEIGHBORHOOD STABILIZATION PROGRAM ( "NSP ")
Awarding Federal Agency: U.S. Department of Housing and Urban Development
Award Number: B.08- DN-48 -0001
Federal Award Year: 2008
Pass Through Entity: Texas Department of Housing and Community Affairs
TDHCA Award Year: 2012
NSP1 -PI RESERVATION SYSTEM PARTICIPATION AGREEMENT (this "RSP
Agreement ") in connection with approval to participate in the NSP1 -PI Reservation System (the
"Reservation. System ") is made and entered into by and between the TEXAS DEPARTMENT
OF HOUSING AND a public and official agency of the State of
Texas, hereinafter referred to as (the "Department" or "TDHCA ") and City of Pori Arthur, a
political subdivision of the State of Texas (the "Subgrantee "), herein collectively referred to as
the "Parties."
RECITALS
WHEREAS, the Department has entered into a grant agreement with the U.S.
Department of Housing and Urban Development ( "HUD ") pursuant to which HUD will provide
funds to TDI=ICA to make available to eligible applicants in accordance with the Program
Requirements;
WHEREAS, the Department is a designated grantee of funding that was initially
authorized under Section 2301(b) of the Housing and Economic Recovery Act of 2008
( "HERA ") (Pub. L 110 -289, approved July 30, 2008); and has the authority to make a subaward
or otherwise contract with eligible organizations to participate in the administration of funds
under NSP (the "NSP Funds ") to eligible applicants in accordance with the "Program
Requirements ", include: FIER.A; Development Block Grant federal
regulations (24 C.F.R. Part 570), as applicable (the "CDBG Regulations "); HOME Investment
Partnerships Program federal regulations (24 C.F.R. Part 92), as applicable (the "HOME
Regulations "); Chapter; 24 C.F.R. Part 58 for environmental clearance requirements; 24 C.F.R.
Parts 84 and 85, as applicable, for such issues as procurement and conflict of interest; Section 3
of the Housing and Urban Development Act of 1968 (12 U.S.C. §1701u) and implementing
regulations at 24 C.F.R.Part135; relocation assistance provisions at 42 U.S.0 §5304 (d) and 24
C.F.R. Part 42, (as amended by HERA); lead based paint procedures (24 C.F.R. Part 35, subparts
A, B, J, K, and R); 24 C.F.R, Ports 100 -115 for fair housing; Chapter 2306 of the Texas
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Government Code; Title 10, Chapter 20 of the Texas Administrative Code (the "S le- family
Umbrella Rule ")Title 10, Chapter 29 of the Texas Administrative Code, Texas Single Family
NSP Rule (the "NSP RULE "); Title 10, Chapters 1 and 60 of the Texas Administrative Code;
the Texas NSP I-PI Notice of Funding Availability ( "NOFA "); the NSP technical manual; and
training materials and other publications of the Texas NSP; and
WHEREAS, the previous NSP1 Contract No. 77090000154 ( "NSP1
Contract ") is currently unexpired and will continue in full force and affect, but funds are no
longer available to be drawn from the contract for expenses incurred after August 16, 2013; and
WHEREAS, the Department hereby affirms the NSP1 Contract and all of the provisions
contained therein shall remain in full force and effect during the Term defined below. In cases
where the provisions stated herein conflict with the NSP1 Contract, the terms herein shall apply;
and
WHEREAS, the Subgrantee will continue to incur expenses on the Projects originally
funded under the previous NSP I Contract and will complete new homebuyer transactions
requiring funding; and
WHEREAS, the deferred payable loans made under the NSP1 Contract have matured and
it is not possible to snake the loans current except by a modification and a modification is not
feasible without disproportionate cost and delay; and
WHEREAS, NSP1 Program Income ( "P1 ") funds are available to address the costs and
expenses to facilitate the final homebuyer loan at closing the Property Address(es) listed below
as originally contemplated under the NSPI Contract; and
WHEREAS, the funds reserved under this RSP Agreement shall be distributed either to
the Subgrantee for the reimbursement of eligible costs after the associated interim loan has been
resolved or shall go directly to the Eligible Household purchasing the Property Address listed
below for associated closing costs;
NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth
herein, including the recitals, which are contractual in nature, and other good and valuable
consideration, the receipt and sufficiency of Which are hereby acknowledged, the Parties, each
intending to be legally bound, hereby agree as follows:
ARTICLE 1
DEFINITIONS
A. Unless the context clearly indicates otherwise, capitalized terns used shall have the
meanings ascribed to them in this RSP Agreement, provided that certain capitalized terns
used and not defined herein shall have the meanings ascribed to theirs. in or for purposes
of the NSP Rule. 1n - thee event - a conflict between the Program Requirements with
respect to the meaning of a defined term, the meaning given by HUD shall control. The
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meanings of the capitalized terms used herein and not defined in the Program
Requirements are set forth herein.
B. "Project" means the NSP1 -P1 funding sought for specific address or addresses under the
Subgrantee's common ownership, control and financing in whole or in part and
previously approved through the NSP Contract No.77090000154, including, and is
limited to, the following addresses:
1) 2339 5th Street, Port Arthur
2) 1601 9th St, Port Arthur
3) 1742 9th St, Port. Arthur
4) 1831 9th Street, Port Arthur
5) 1947 9th- St- ,- Port...Arthur- — — _ _.-
6) 2024 9th Street , Port Arthur
ARTICLE 2
RESERVATION SYSTEM PARTICIPATION
Section 2.1 Term
This RSP Agreement shall be effective on the latter date this RSP Agreement is executed
by the Subgrantee and an authorized rcpresentative.of the Department and shall terminate
on August 31, 2014 (the "Term "), unless earlier terminated or amended in accordance
with the provisions herein.
Section 2.2 Reservation System Access
A. This RSP Agreement is entered into in accordance with the Program Requirements.
Execution of this RSP Agreement does not guarantee the availability of funds to carry out
the activities described herein. To the extent that the Department makes NSP Funds
available for the completion of eligible activities specified in the previous NSP Contract
No. 77090000154, the Subgrantee shall have access to the Department's Housing
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Contract System (httns:// contract. tdhca .state.tx.usfailigatoriLogin.m) to make a
reservation of NSP Funds in accordance with the terms and conditions herein.
B. Subgrantee shall have access to the Department's Housing Contract System
(.htfps :// contract. tdhca. state.tx.tts /alligator/Login.m) to submit a reservation. of funds for a
Project on any business day during the Term of this RSP Agreement, provided sufficient
funds are available.
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C. For any Project that is approved for a reservation of funds, the Subgrantee must enter into
an agreement with the Department to govern the provision of approved funds and specify
the applicable Program Requirements (the "Project Commitment' Contract "). The
Project Commitment Contract is attached hereto as Ex.hibit A, attached hereto and made
a part hereof for all relevant purposes.
D. Notwithstanding any other provision of this RSP Agreement to the contrary, the total of
all payments and other obligations incurred by Department under this RSP Agreement
shall not exceed the-amounts-available under the Reservation System after making all
appropriate adjustments and provisions for other obligations, limitations, costs, and
expenses.
Section 2.3 Targeted Households
A. Each Eligible Household served under the RSP Agreement is required to have an income
that is less than or equal to 120% of the area median income ( "AMI') determined in
accordance with 24 C.F.R. Part 92 and24 C.F.R. § 5.609, will occupy the unit for which
NSP Funds are being provided as the household's principal residence in accordance with
the Program Requirements; and that meets all other Program Requirements.
ARTICLE 3
RECAPTURE. AND REPAYMENT OF FUNDS
Section 3.1 Recapture of Funds
A. Subgrantee shall besubject ttr the ✓following recapture provisions and the Department
reserves the right to force recapture of all funds disbursed under this RSP Agreement for
any of the following events and any other event agreed to by the parties in the Loan
Documents. When applicable, the Department shall use the federal recapture
requirements in 24 C.F.R. §92.254 to determine the amount of funds subject to recapture.
a. Department determines that Subgrantee will be unable to expend all funds
reserved within the terns of a Project Commitment Contract and funds disbursed
did not result in the completion of the units for construction activities and
occupancy by Households for all activities in accordance with this RSP
Agreement;
b. NSP Funds have been determined by the Department or HUD to have been
expended for costs other than eligible costs as defined and specified under the
previous NSP Contract No. 77090000154 and Program Requirements and limited
to those listed in Subparts C and 1 of 24 C.F.R. §570 (the "I",ligible Costs ") and
have not been repaid to the Department within thirty (30) Business Days of such
. notice provided
c. A housing unit assisted with NSP Funds fails to comply, or ceases to comply,
with the affordability requirements in 24 C.F.R. § §92.254(4) and (S)(ii) and as
otherwise specified herein.
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d. A violation of any law, regulation or order applicable to the Subgrantee that has
or might reasonably be expected to have a material adverse impact on the
Subgrantee's ability to fulfill the terms of this RSP Agreement and is not cured
within the applicable cure period, if any, provided in such law, regulation, or
order;
e. Gross negligence, fraud, willful misconduct, misappropriation of funds, or
criminal activity by Subgrantee or any affiliate of the Subgrantee providing
services to or in connection with the RSP Agreement or Subgrantee;
f. The Subgrantee is debarred, suspended, proposed for debarment, or placed in an
ineligible status by HUD;
g. Failure to provide any Required Report;
h. Default of the terms and conditions of previous NSP Contract No. 77090000154;
B. Subgrantee acknowledges that in the event Subgrantee is unable to perform in accordance
with this RSP Agreement, the Department shall terminate this RSP Agreement and
Subgrantee will surrender rights to any committed funds,
ARTICLE 4
RESERVATION OF NSPI -PI FUNDS
Section 4.1 Reservation and Commitment of NSP Funds
A. A Department approved reservation of NSP Funds and Project Commitment Contract
shall be required for each Project that receives NSP Funds.
B. A Commitment of NSP Funds shall not be made under this RSP Agreement until such
time as the Executive Director of the Department or his designee has approved. the
Project Commitment Contract. if the Executive Director of the Department fails to
approve the Project Commitment Contract, the Department shall have no liability to
reimburse or otherwise compensate Subgrantee for activities performed.
C. For a Comrnitlnent of NSP Funds to a Project, Subgrantee must submit to the Department
at its offices in Travis County, Texas, a properly completed electronic reservation of NSP
Funds for an Activity and support documentation using the Housing Contract System in
accordance with the Program Requirements required and specified by .Department in its
sole discretion.
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D. Reservation of NSP Funds will not occur until Subgrantee has submitted all required
documentation and such documentation has been accepted by Department. lf, during
review, the Department identifies administrative or other deficiencies, the Department
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shall, in its sole discretion, disapprove the request. Disapproved requests shall not
constitute a reservation of NSP Funds_
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Section 4.2 Disbursement of NSP Funds •
A. Subgrantce may not request disbursement of funds for Eligible Costs incurred under this
RSP Agreement until the funds are needed for payment of Eligible Costs in accordance
with the Program Requirements. Subgrantce shall submit to Department at its offices in
Travis County, Texas, a properly completed electronic request for funds and support
documentation using the Housing Contract System
( Ilitps: li titlntraet. tdltca .slate.tx.11s/allitator /Lo Lin) in accordance with the Program
Requirements and as required and as specified by Department in its sole discretion.
B. Subgrantec may not request disbursement in an amount less than $ 1,000.00, unless the
request constitutes all available funds for the activity or contract.
C. Subgrantce is limited to no more than two disbursement requests for each Project
Commitment Contract.
D. For completed activities, Subgrantee may receive reimbursement for reasonable Activity
Delivery costs directly related to the Project in an amount not to exceed the limitations
provided in the Texas NSP 1 NOFA, subject to the provisions of this agreement, for
Eligible Costs under this RSP Agreement.
E. Department shall -determine the reasonableness of each amount requested and shall not
make disbursement of any such payment until Department has reviewed and approved
such request. The Department may request Subgrantee to make modifications to the
disbursement request and is authorized to modify the disbursement procedures set forth
herein and to establish such additional requirements for payment of NSP Funds to
Subgrantec as may be necessary or advisable for compliance with all Program
Requirements.
F. Subgrantee agrees to attend training, as may be required by Department, prior to the
disbursement of any funds under this RSP Agreement.
G. Department shall not release any funds for any costs incurred by Subgrantec under this
RSP Agreement until Department has received from Subgrantce the following: executed,
legally enforceable loan documents as applicable) which may include, at a minimum, a
promissory note and deed of trust for each assisted Project containing remedies adequate
to enforce the Program Requirements including the affordability requirements of 24
C.F.R. §92.254 ( "Loan Documents "). Subgrantee shall record such agreements in the
real property records of the county in which the Unit is located and return the original
documents, duly certified as to recordation by the appropriate county official, to
Department.
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H. Department shall not release NSP Funds for any costs incurred by Subgrantee under this
RSP Agreement until Department has received certification from Subgrantee that its
fiscal control and fund accounting procedures are adequate to assure - the proper disbursal
of and accounting for, funds provided under this RSP Agreement. The Department shall
specify the content. and form of certification.
I. Department shall not be obligated for any costs incurred or performances rendered after
the termination date of the Project Commitment Contract under which the Commitment
of NSP Funds is made. Documentation for reimbursement of costs incurred in accordance
with this paragraph rnust be submitted in accordance with this Section and before the 30
day following completion of the activity described in the Project Commitment Contract.
J. Department shall not disburse NSP Funds under this RSP Agreement until and unless the
Department has received adequate federal ftlrrds to meet Department's liabilities under
this RSP Agreement. If adequate funds are not available to make payments under this
RSP Agreement, Department shall notify Subgrantee in writing within a reasonable time
after such fact is determined. In that event, this RSP Agreement shall terminate and
neither Department nor Subgrantee shall have any further rights or obligations hereunder.
K. In addition to the limitations on liability otherwise specified in this RSP Agreement, it is
expressly understood and agreed by the Parties hereto that if Subgrantee fails to submit to
Department iii a tinily and satisfactory manner any Required Reports, Department may,
at. its sole option and in its sole discretion, withhold any or all disbursements otherwise
due or requested by Subgrantee hereunder. If Department withholds such disbursements,
it shall notify Subgrantee in writing of its decision, the reasons for this action and the
time period in which Subgrantee must bring itself into compliance. Disbursements
withheld pursuant to this 'section may be held by Department until such time as the
Subgrantee is in compliance with the requirements for which funds are being withheld. If
Subgrantee fails to perform as required within the stated cure period, Department may
terminate this RSP Agreement and Subgrantee hereby agrees and acknowledges that
upon termination of this RSP Agreement, Subgrantee's rights to any reservation of NSP
Funds may be terminated.
ARTICLE 5
AMENDMENTS
A. Except as specifically provided otherwise in this RSP Agreement or in the NSP Rule, any
changes, additions, or deletions to the terms of this RSP Agreement shall be in writing,
approved by the Department, executed by both Parties to this RSP Agreement and shall
comply with the amendment requirements of the NSP Rule. A facsimile or electronic
copy executed by both Parties will be sufficient to evidence the Parties agreement to any
amendment, revision or change to this RSP Agreement. If any Party returns this copy by
facsimile machine or electronically, the signing party intends the copy of its authorized
signature printed by the receiving machine, or the electronic copy, to be its original
signature.
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B. Any changes, additions, or deletions to the •terrns of this RSP Agreement which are
required by changes in the NSP rule, federal or state law, or regulations, are
automatically incorporated into this RSP Agreement without the requirement of a written
amendment hereto, and shall become effective on the date designated by such law or
regulation.
C. Amendment requests must be submitted in writing by Subgrantee not less than sixty .(60)
days before the end of the Term. Amendment requests received within.60 days before the
Term's end shall be considered on an•individual basis.
D. Department approved amendments submitted to the Subgrantee must be executed and
returned within ten (10) business days of receipt. If the amendment is not returned within
ten (10) days, it will be cancelled and be of no further effect.
ARTICLE 6
CROSS- CUTTING FEDERAL REQUIREMENTS
Section 6.1 Environmental Clearance
A. No funds may be requested or committed to a Project before the completion of the
environmental review process, including the requirements of 24 C.F.R. §58.6, and
the Department has provided written clearance.
B. If funds are provided under this RSP Agreement to a "unit of general local government,"
the recipient is delegated authority as the Responsible Entity (RE) and makes all
environmental..clearance determinations. The Department assumes the role of HUD
pursuant to 24 C.F.R. Part 58, "Subpart H — .Release of Funds for Particular Projects" and
is responsible for reviewing and approving the Request for Release of Funds and granting
the recipient the Authority to Use Grant Funds.
C. If Subgrantee is a private or public non - profit, housing authority or other form of
organization that is not a unit of local government, it is not delegated authority to become
an RE and make cnvironrnental determinations and therefore, shall assist Department in
completing the environmental review by providing all relevant documentation needed to •
perform an environmental review, or carry out mitigating measures required, or selecting
an alternate property for assistance. •
D. Subgrantees may be required to attend NSP training for environrnentaI assessment. The
assessments must be satisfactory to Department. This RSP Agreement is conditional in
nature and does not grant Subgrantee legal claim to any NSP Funds for a specific Project
or site until the environmental review process is approved by Department. The agreement
to provide funds to the project is conditional on Department's or Subgrantee's
determination - to proceed -- -with, - modify or cancel the project based on the results of a
subsequent environmental review.
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E. NSP Funds provided under this RSP Agreement may not be used in connection with
acquisition or rehabilitation or new construction of housing located in an area identified
by the Federal .Emergency Management Agency (FEMA) as having special flood
hazards, unless the locality in which the site is located is participating in the National
Flood Insurance Program (NFIP) or less than a year has passed since FEMA notification
regarding such hazards and flood insurance is obtained as a condition of approval of the
cornmitrnent. Subgrantee must determine if the locality participates in the NFIP during
the preliminary stages of the environmental clearance process.
Section 6.2 Lead -Based Paint
Subgrantee shall comply with 24 C.F.R. §92.355 which requires that housing assisted
with NSP Funds is subject to the Lead -Based Paint Poisoning Prevention Act (42 U.S.C.
4821 - 4846), the_Residential Lcad- B,ased .Paint Hazard Reduction Act of 1992 (42 U.S.C.
4851- 4856), the implementing regulations at 24 C.F.R. Part 35, (including subparts A, B.,
K, M and R), and the Lead; Renovation, Repair, and Painting Program Final Rule, 40
C.F.R. Part 745. Failure to comply with the lead -based paint requirements, may result in
sanctions and penalties pursuant to 24 C.F.R. §35.170.
Section 6.3 Equal Eiitployment Qpportunity Program
Subgrantee agrees to carry out an Equal Employment Opportunity Program as provided in
President's Executive Order 11246 of September 24, 1965, as amended, and its
implementing regulations at 41 C.F.R. Part 60.
Section 6.4 Limited English Proficiency ( "LEP ")
Subgrantee shall comply with the requirements in Executive Order 13166 of August 11,
2000, reprinted at 65 FR 50121, August 16, 2000 Improving Access to Services for Persons
with Limited English Proficiency and 67 FR 41455. To ensure compliance the Subgrantee
must take reasonable. steps to insure -that LEP persons have meaningful access to the
program and activities. Meaningful access may entail providing language assistance
services, including oral and written translation, where necessaiy
Section 6.5 Miuority/Wornens' Business Enterprise
Subgrantee will use its best efforts for minority outreach to afford minority business
enterprises and wornen's business enterprises the maximum practicable opportunity to
participate in the performance of this RSP Agreement and must prescribe procedures
acceptable to HUD for a minority outreach program under Executive Orders 11625, 12432
and 12138. The Subgrantee may rely on written representations by businesses regarding
their status as minority and women -owned business enterprises in lieu of an independent
investigation.
ARTICLE 7
RECORDS AND REPORTING
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Section 7.1. Retention and Accessibility- of Records
A. Subgrantee shall maintain fiscal records and supporting documentation for all
expenditures of funds made under this RSP Agreement in a manner which conforms to
A -122 and 24, and C.P.R. §570.490. Records shall be maintained at the Subgrantee's
primary place of business. Subgrantee shall retain such records, and any supporting
documentation, for the greater of:
(i) Three years after close -out of the NSP 1 HUD grant to the state of Texas (not. the
closeout of this RSP Agreement);
(ii) if notified by the Department in writing, the date that the final audit is accepted
with all audit issues resolved to the Department's satisfaction;
(iii)A date consistent with the period required by other applicable laws and
regulations as described in 24 C.F.R. §570.487 and §570.488; or
(iv)Such other periods as may be described herein.
13. Such records shall include but not be limited to:
(i) .Records providing a full description of each Project undertaken;
(ii) Records - that each activity undertaken benefits low, moderate, or
middle income persons;
(iii)Records documenting the purchase and sale amounts of the property, applicable
discounts, and the sources and uses of Rinds for each Project;
(iv)Records documenting compliance with the fair housing and equal opportunity of
the NSP program, including but not limited to the racial, ethic, and gender
characteristics of persons who are applicants for, participants in, or beneficiaries
of the program;
(v) Records documenting efforts to ensure that any initial successor in interest has
complied with the applicable tenant protection requirements under the Protecting
Tenants at Foreclosure Act of 2009 (Pub. L. 111-22). in addition, records
documenting efforts to ensure compliance with Section 1497 of the Dodd -Frank •
Wall Street Reform and Consumer Protection Act (Pub. L. 111- 203,1 -1.R. 4173),
as applicable; and •
(vi)Other records necessary to document compliance with Subpart K of 24 C.F.R.
§570.487.
C. If any litigation, Claim, negotiation, audit, monitoring, inspection or other action has
started before the expiration of the required record retention period records must be
retained until completion of the action and resolution of all issues which arise from it, or
until the end of the required period, whichever is later.
D. Records covering displacement and acquisitions must be retained for five (5) years after
the date by which .all persons displaced from the property and all persons whose property
is acquired for the project have received the final payment to which they are entitled in
accordance with 49 C.F.R. Part 24 and 24 C.F.R. Part 42, as amended by J-IERA.
E. Subgrantee shall give the United States Department of Housing and Urban Development,
the Inspector General, the General Accounting Department, the Auditor of the State of
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Texas, any department or agency of the State of Texas, and the Department, or any of
their duly authorized representatives, access to and the right to examine all books,
accounts, records, reports, files, and other papers, things, or property belonging to or in
use by the Subgrantee pertaining to this RSP Agreement. Such rights to access shall
continue as long as the records are retained by the Subgrantee.
F. Subgrantee acknowledges that Department is subject to the Texas Public Information Act
and Subgrantee agrees that funds received from the Department are subject to the Texas
Public Information Act and the exceptions Subgrantee to disclosure as provided under the
Texas Public Information Act. Subgrantee agrees to maintain such records in an
accessible location and to provide citizens reasonable access to such records consistent
with the Texas Public Information Act.
G. The Subgrantee shall include the substance of this Section 7A in all subcontracts.
Section 7.2 Reporting Requirements
A. Subgrantee shall submit to Department such reports on the operation and performance of
this RSP Agreement as may be required by Department, including but not limited to the
reports specified in this section. Subgrantee shall provide Department with all reports
necessary for. Department's compliance, at a ininitnum, with 24 C.F.R. Part 570, the
Notice of NPS; Closeout Requirements and Recapture at Docket No. FR- 5660 -N -01, and
10 TAC Ch. 60, which shall collectively hereby be referred to as "Required Reports."
B. In addition to Required Reports, the Subgrantee shall provide reports to Department
regarding program activities as necessary to evidence progress of performance in
accordance with the Program Requirements.
C. Subgrantee shall provide reports to Department as necessary to complete final HUD
reporting, regardless of the term or-expiration status of this Agreement.
ARTICLE 8
AUDITS AND. MONITORING
Section 8.1 Audits
A. Subgrantee shall submit to Department, within sixty (60) days after the end of each fiscal
year, an Audit Certification Form as specified by Department for each fiscal year in
which any month of the Subgrantce's fiscal year overlaps a month of the contract Tenn.
Unless otherwise directed by Department, Subgrantee shall arrange for the performance
of an annual financial and compliance audit of funds received and performances rendered
under this RSP Agreement, subject to the following conditions and limitations:
(i) Subgrantee shall have an audit conducted in accordance with 24 C.F.R. §84.26 or
§85,26, as applicable; OMB Circular A -133; and 31 U.S.C. 7501 for any of its
fiscal years included within the contract Tenn specified in Section. 1 of this RSP
Agreement in which Subgrantee has expenses of more than $500,000 in federal
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•
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 riot include direct federal cash
assistance to individuals. The term federal financial assistance includes awards of
financial assistance received directly from federal agencies, or indirectly through
other units of State and local government.
(ii) At the option of Subgrantee, each audit required by this section may cover
Subgrantee's entire operations or each department, agency, or establishment of
Subgrantee which received; expended, or otherwise administered federal funds.
(iii)Notwithstanding anything to the contrary in herein, Subgrantee may utilize funds
budgeted under this RSP Agreement to pay for that portion of the cost. of such
audit services .properly allocable to the activities funded by Department under this
RSP Agreement. Provided, however, Department shall not make payment for the
cost of such audit services until Department has received the audit report from
Subgrantee and any other documentation deemed necessary to meet the Program
Requirements.
(iv)Unless otherwise specifically authorized by Department in writing, Subgrantee
shall submit two (2) copies of the report of such audit to Department within thirty
(30) days after completion of the audit, but no later than nine (9) months after the
end of each fiscal period included within the period of this RSP Agreement.
Audits performed under this section are subject to review and to direction on
resolution of findings by Department or its authorized representative.
B. Notwithstanding anything in to the contrary herein, Department reserves the right to
conduct an annual financial and compliance audit of funds received and performances
rendered under this RSP Agreement. Subgrantee agrees to permit Department, or its
authorized representative, to audit. Subgrantee's records and to obtain any documents,
materials, or information necessary to facilitate such audit.
C. Subgrantee understands and agrees that it shall be liable to Department for any costs
disallowed pursuant to financial and compliance audit(s) of funds received under this
RSP Agreement. Subgrantee further understands and agrees that reimbursement to
Department of such disallowed costs shall. be paid by Subgrantee from funds which were
not provided or otherwise made available to Subgrantee under this RSP Agreement.
D.. Subgrantee shall take all necessary actions to facilitate the performance of such audit or
audits conducted pursuant to this section as Department may require of Subgrantee.
E. All approved NSP audit reports shall be made available for public inspection within thirty
(30) days after completion of the audit.
F. The Subgrantee shall include language .in any subcontract that provides the Department
the ability to directly review, monitor, and/or audit the operational and financial
performance and/or records of work performed under this RSP Agreement.
Section 8.2 Uniform Administrative Requirements and Cost Principles •
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A. Subgrantee may not retain Program Income (as defined at 24 C.F.R. §570.500(a)(1)) but
not including the exclusions found at 24 C.F.R. §570.500(a)(4) of any kind, however
derived, under this RSP Agreement, including the retention of Program Income to fund
other eligible Texas NSP activities. Any program income derived under this RSP
Agreement must be submitted to Department within ten (10) business days. Revenue
received by a private individual or other entity as a result of Subgrantee's activities
involving NSP Funds must also be submitted to Department within ten (10) business
days. Unless otherwise stated herein, the Subgrantee shall comply with the requirements
of 24 C.F.R. §570.489(e) to account for program income, repayment and recaptured
funds.
Section 8.3 Monitoring
A. Failure by Subgrantee to take the action specified in the monitoring report may be cause
for suspension, termination or recapture of funds, as provided in Article 9 of this RSP
Agreement.
B. Subgrantee agrees to attend training, as required by Department.
ARTICLE 9
SUSPENSION OK TERMINATION
A. Either of the Parties to this RSP Agreement shall have the right to terminate this RSP
Agreement when both Parties agree that the continuation of the activities funded under
this RSP Agreement would not produce beneficial results commensurate with the further
reservation of NSP Funds provided that both Parties agree, in writing, upon the
termination conditions, including the effective date of such termination.
B. Upon termination or receipt of notice to terminate, whichever occurs first, the Subgrantee
shall cancel, withdraw, or otherwise terminate any outstanding reservation of NSP Funds
related to the performance of this RSP Agreement or the part ofthis.RSP Agreement to
be terminated and shall cease to incur costs thereunder. The Department shall not be
liable to the Subgrantee for costs incurred by Subgrantee after termination or receipt of
notice to terminate.
ARTICLE 10
GENERAL PROVISIONS
Section 10.1 Special Conditions
A. Upon termination of this RSP Agreement, all funds remaining on hand on the date of
termination, and all accounts receivable attributable to the use of funds received under
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this RSP Agreement shall revert to Department. Subgrantee shall return. these assets to
Department within seven (7) business•days after the date of termination.
B. It is expressly understood and agreed by the Parties hereto that Department is contracting
with Subgrantee as an independent contractor, and that Subgrantee, as such, agrees to
hold Department harmless and to the extent allowed by law indemnify Department 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 Subgrantee under this RSP
Agreement.
C. It is expressly understood and agreed by the Parties hereto that any right or remedy
provided for in Section 10.1, or in any other provision of this RSP Agreement, shall not
preclude the exercise of any other right or remedy under this RSP Agreement or under
any provision of law. Nor shall any action taken in the exercise of any right or remedy be
deemed a waiver of any other_ right or remedy. Failure to exercise any right or remedy
hereunder shall not constitute a waiver of the right to exercise that or any other right or
remedy at any time.
D. Subgrantee understands that failure to perform under the terrns of this RSP Agreement or
in accordance with the Program Requirements may result in the Department's imposition
of the applicable remedies specified in 10 TAC Part 1.
Section 10.2 Subcontracts
A. Subgrantee shall include language in any subcontract that failure of
subcontractor /consultant to adequately perform under the contract may result in penalties
up to and including debarment from perforating additional work for the Department.
B. Subgrantee shall only subcontract for performance of activities described in this RSP
Agreement after Subgrantee has obtained the appropriate documentation verifying the
subcontractor's eligibility, as required by state of federal law or specified by Department,
for each such proposed subcontract. Subgrantee, in subcontracting for any activities
described in this RSP Agreement, expressly understands that in entering into such
subcontracts, Department is in no way liable to Subgrantce's subcontractor(s).
Section 10.3 Conflict of Interest
A. It is the responsibility of the Subgrantee to comply with all applicable laws, rules,
regulations, ordinances, and other legal requirements regarding prohibited acts including,
but not limited to conflicts of interest and nepotism. In that regard the Subgrantee is
required to have in place and at all times follow written policies to ensure such
compliance and to avoid prohibited acts or the appearance thereof. Han actual or
suspected prohibited act or the appearance thereof occurs or is alleged, Developer shall
promptly identify same, review the matter with its counsel, and advise the Department (i)
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what, factually, occurred, (ii) was there any violation of legal requirements or policy, and
(iii) if there was a violation, what will be the corrective action to address that matter and
prevent any recurrences.
B. Subgrantee shall ensure that no employee, director, or agent of the Subgrantee shall
participate in the selection, or in the awardor administration ofa subcontract supported
by funds provided if a conflict of interest, real or apparent, would be involved. Such
conflict of interest would arise when: (i) The employee, director, or agent; (ii) any
member of his or her irnmediate farnily; (iii) his or her partner; or, (iv) any organization
which employs, or is about to employ any of the above, has a financial or other interest in
the firm or person selected to perform the subcontract.
C. Subgrantee shall comply with 24 C.F.R. §570.489(h) of the federal regulations.
D. In all cases not governed by Subsection (B) of this.Section, no persons specified in
subsection (C) of this Section who exercise or have exercised any functions or
responsibilities with respect to the activities assisted under this RSP Agreement, the
previous NSP Contract No. 77090000154 or any other NSP contract or who are in a
position to participate in a decision making process or gain inside information with
regard to such activities, may obtain a financial interest or benefit from the activity, or
have an interest or b.enefit.frorri•the• activity, or have any interest in any contract,
subcontract or agreement with respect thereto, or the proceeds thereunder, either for
themselves or those with whom they have family or business ties during their tenure or
for one year thereafter.
Section .10.4 Nondiscrimination, F air Housing, Egual Access and Ectual O pport uni ty
A. Subgrantee shall ensure that no person shall, on the grounds of race, color, religion, sex,
disability, 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 RSP Agreement. Subgrantee shall follow
Title VI of the Civil Rights Act of 1964, as amended (42 U.S.C. 2000d et sec.), the Age
Discrimination Act of 1975 (42 U.S.C. 6101 et seq.) and its implementing regulations at
24 C.F.R. Part 146, Titles 11 and III of the Americans with Disabilities Act .(42 U.S.C.
§ §12131 - 12189, as implemented by Department of Justice regulations at 28 C.P.R. Parts
35 and 36, and Title VIII of the Civil Rights Act (42 U.S.C. 3601 et seq.), as
implemented by the department of Housing and Urban Development at 24 C.F.R.Part
100. -
13. Subgrantee shall include the substance of this section in all of its subcontracts.
Section 10.5 Faith Based Activities
None of the performances rendered by Subgrantee under this RSP Agreement shall
involve, and no portion of the funds received by Subgrantee under this RSP Agreement
shall be used in support of any inherently religious activity, such as worship, religious
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instruction, or proselytization. Subgrantee shall comply with the regulations promulgated
by HUD at 24 C.F.R. §570.200(j).
Section 10.6 Legal Authority
A. Subgrantee assures and guarantees Department that Subgrantee possesses the legal
authority to enter into this RSP Agreement, to receive funds authorized by this RSP
Agreement, and to perform the services Subgrantee has obligated itself to perform under
this RSP Agreement.- _ ___
B. The person(s) signing and executing this RSP Agreement on behalf of Subgrantee does
hereby warrant and guarantee that he is duly authorized by Subgrantee to execute this
RSP Agreement on behalf of Subgrantee and to validly and legally bind Subgrantee to all
the terms, performances, and provisions of this RSP Agreement.
C. Subgrantee shall not employ, award contracts to, or fund any person that has been
debarred, suspended, proposed for debarment, or placed on ineligibility status by HUD,
under Executive Order 12549 and/or the Department. In addition, Department shall have
the right to suspend or terminate this RSP Agreement if Subgrantee is debarred,
suspended, proposed for debarment, or is otherwise ineligible from participating in the
NSP Program by HUD or the Department. Subgrantee acknowledges and agrees that this
section specifically includes, but is not limited to consultants hired by Subgrantee to
assist Subgrantee in any aspect relative to the activities of this RSP Agreement shall
receive the certification provided by the Department from each proposed subcontractor
under this RSP Agreement and its principals.
Section 10.7 Oral and Written A reemtents
A. All attachments are a part of this RSP Agreement and constitute promised performances
under this RSP Agreement.
Section 10.8 Venue
This RSP Agreement shall be construed under and in accordance with the laws of the
State of Texas. VENUE FOR ANY LITIGATION REGARDING THIS RSP
AGREEMENT SHALL BE FIXED IN ANY COURT OF COMPETENT
JURISDICTION IN AUSTIN, TRAVIS COUNTY, TEXAS; provided, however, the
foregoing shall not be construed as a waiver by either party of sovereign immunity,
official immunity or any other immunity or defense provided by law.
Section 10.9 Compliance with Federal, State and Local Law
Subgrantee shall comply witlial{federal, state and local laws, statutes, ordinances, rules,
regulations, orders and decrees of any court or administrative body or tribunal related to
the activities and performances of Subgrantee under this RSP Agreement. Upon request
by Department, Subgrantee shall furnish satisfactory proof of its compliance therewith. ,
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Section 10.10 Assignment
This RSP Agreement is entered into by Department and between Subgrantee only.
Accordingly, it is not assignable by either party without the prior written consent and
agreement of the other party, which consent may be withheld by such party in its sole
discretion,
Section 10.11 Severability
If any provision of this Agreement is held invalid, the remainder of the Agreement shall
not be affected thereby and all other parts of this Agreement shall nevetiheless be and
retrain its full -force and effcct-and.construcd so as best to effectuate the intent of the
Parties.
Section 10.12 Force Majeure
Time is of the essence in the completion and delivery of the obligations stated herein. If
the obligations, including construction or rehabilitation of the improvements are delayed
by the following, an equitable adjustment will be made for delay or failure to perform
hereunder:
Any of the following events: (i) catastrophic weather conditions or other extraordinary
elements of nature or acts of God; (ii) acts of war (declared or undeclared), (iii) acts of
terrorism, insurrection, riots, civil disorders, rebellion or sabotage; and (iv) quarantines,
embargoes and other similar unusual actions of federal, provincial, local or foreign
Governmental Authorities; and
The non- performing party is without fault in causing or failing to prevent the occurrence
of such event, and such.. occurrence could not have been circumvented by reasonable
precautions and could not have been prevented or circumvented through the use of
commercially reasonable alternative sources, workaround'plans or other means.
Section 10.13 Counterparts and Facsimile Signatures
This RSP Agreement may be executed in one or more counterparts each of which shall
be deemed an original but all of which together shall constitute one and the same
instrument. Signed signature pages may be transmitted by facsimile or electronic
transmission, and any such signature shall have the same legal effect as an original. An
executed facsimile or entail copy will be sufficient to evidence the Parties' agreement to
any amendment, revision or change to this RSP Agreement if it is trade on a forth
provided by the Department. If any party returns a copy by facsimile machine, the
signing party intends the copy of its authorized signature printed by the receiving
machine to be its original signature. Harry party returns a copy by email, the signing
party intends the copy of its authorized signature mailed to the receiving email to be its
original signature.
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Section 10.14 Notice
A. If notice is provided concerning this RSP Agreement, notice may be given at the
following (herein referred to as "Notice Address "):
As to Department:
TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
P. O. Box 13941
Austin, Texas 78711 -3941
• Attention: NSP Program
Telephone: (51.2) 475 -3726
e -mail address: marni .holloway @tdhca.state.lx.us
As to Strbgrrantee:
City of Port Arthur
444 Fourth Street, Suite 203
Port Arthur, TX 77640 _... _
Attention: Floyd T. Johnson, City Manager Telephone:
(409) 983-8115
e -mail address: bfreeman @portarthur.net
B. All notices or other communications hereunder shall be deemed given when
delivered, mailed by overnight service, or five days oiler mailing by certified or
registered mail, postage prepaid, return receipt requested, addressed to the appropriate
Notice Address as defined in the above Subsection A of this Section 10.14.
Section 10.20 Nunnber3 Gender
Unless the context requires otherwise, the words of the masculine gender shall include
the feminine, and singular words shall include the plural.
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IN WITNESS WHEREOF, each of the Parties has executed this RSP Agreement as of the dates
written below..
DEPARTMENT: TEXAS DEPARTMENT.` OF HOUSING AND
COMMUNITY AFFAIRS, a public and official
agency of the State of Texas
By: 1( 4Dp &-d�'
Name: Brooke Boston
Its duly authorized officer or representative
Date: l9
City of Port Arthur, a political subdivision of the State
of Texas
SUBGRANTEE:
By:
Floyd 1'. Johnson, City Manager
Date:
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TEXAS DEPARTMENT OF HOUSING COMMUNITY AFFAIRS
NEIGHBORHOOD STABILIZATION PROGRAM ONE PROGRAM INCOME ( "NSPI -PI ")
EXHIBIT A
RESERVATION SYSTEM PARTICIPATION AGREEMENT
# 77090003154 WITH
City of Port Arthur,
a political subdivision of the State of Texas
PROJECT COMMITMENT CONTRACT FOR
PROJECT COMMITMENT CONTRACT ( "Contract ") in connection with the
Neighborhood Stabilization Program ( "NSP ") Reservation System Participation Agreement No.
77090003154 ( "RSP Agreement") and the previous NSP I Contract Number 77090000154 is
made and entered into by and between City of Port Arthur, a a political subdivision of the State
of Texas ( "Subgrantee ") and TEXAS DEPARTMENT OF HOUSING AND COMMUNITY
AFFAIRS, a public and official agency of the State of Texas ("Department"), herein
collectively referred to as "Parties."
RECITALS
WHEREAS, Subgrantee wishes to make a Commitment of NSP Funds to the Qualified
Project, as defined in Article I, in accordance with and subject to all provisions of the RSP
Agreement and Program Requirements;
WHEREAS, Subgrantee agrees and acknowledges that this Contract serves as a
supplement to the RSP Agreement and, by execution hereof, shall be subject to all terms and
conditions of RSP Agreement unless otherwise specified herein;
WHEREAS, the terrn Program Requirements as used herein shall have the meaning
proscribed to it in the RSP Agreement as may be amended from time to time; and
WHEREAS, Subgrantee agrees and acknowledges that this Contract serves as a
supplement to the RSP Agreement and, by execution hereof, shall be subject to all terms and
conditions of the RSP Agreement for the duration of this Contact, as may be amended from time
to time, unless othenvise specified herein.
NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth
herein, including the Recitals, which are contractual in nature, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, each
intending to be legally bound, hereby agree as follows:
ARTICLE I
OUALIFIED PROJECT
Subgrantee shall complete the administration of the :. Pu ehhase: and :Relr.abilitation:: -.or
Redeveloprrientl Program in accordance with the terms and conditions of the NSP I Contract No
77090000154, the Notice, NSP Rules, the NOFA, the Application and Program Requirements
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utilizing the NSP Funds for the development of the property located at [street
address] in [City], Texas ( "Qualified Protect ").
Subgrantee has reviewed the proposed Qualified Project and Applicant. Household, and
verifies that it meets the Program Requirements and the requirements of the RSP Agreement.
ARTICLE II:
COMMITMENT OF NSP FUNDS
Section 2.1 Tenn
A. This Contract shall be effective upon the latter date of execution by the Parties and shall
remain in full force and effect until ( "Term "), unless earlier
terminated or amended in accordance with the provisions herein or provisions of the RSP
Agreement.
B. Without limitation, this Contract shall be subject to the terms and conditions of the RSP
Agreement, as may be atnended from time to time, and Program Requirements for the
entire Tenn regardless of term of the RSP Agreement.
Section 2.2 NSP Funds
A. The Department shall make a Commitment of NSP funds to Subgrantee in an amount not
to exceed AND NO /100 DOLLARS ($ ) for direct
homebuyet financing and AND NO /1.00 DOLLARS ($ )
in Activity Delivery finds to complete the Purel ase r : :: a d : ;::Rebai ilitation :..or
Redevelopment] of the Qualified Project which has been purchased by Subgrantee and
redeveloped in accordance with the Program Requirements.
B. Subgrantee shall be allowed to incur costs prior to the effective date of this Contract as
specified in Section 2.1. Such costs may only be incurred for activities directly related to
the [purchase and rehabilitation or redevelopment] of the Qualified Project, provided that
they meet the requirements of 24 CFR Part 570, Subpart I and 24 CFR Part 58 and the •
Progratn Requirements .
C. Notwithstanding any other provision of this Contract to the contrary, the total of all
payments and. - other obligations -- incurred by Department under this Contract shall not
exceed the amounts set forth in Subsection A of this Section 2.2.
ARTICLE III
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GENERAL PROVISIONS
Section 3.1 Changes and Amendments
A, Except as specifically provided otherwise in this Contract, any changes, additions, or
deletions to the terins of this Contract shall be in writing and executed by -both Parties to
this Contract and comply_ with the extension and amendment requirements of
Section 20.14 of the Single Family Programs Umbrella Rule (10 TAC Chapter 20) and
Texas Single Family Neighborhood Stabilization Program Rule (10 TAC Chapter 29), as
applicable.
B. Any changes, 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 the requirement of a written amendment hereto, and shall become
effective on the date designated by such law or regulation.
Section 3.2 Facsimile Sitnatures
A facsimile or electronic copy executed by both Parties will be sufficient to evidence the
Parties agreement to any amendment, revision or change to this Contract. If any of the
Parties returns this copy by facsimile machine or electronically, the signing party intends
the copy of its authorized signature printed by the receiving machine, or the electronic
copy, to be its original signature.
Section 3.3 Capitalized Terms
Any capitalized term appearing in the Contract that has not been defined herein, shall
have the meaning prescribed to it in the RSP Agreement.
Section 3.4 Contract Expiration
This Contract and all Department's obligation hereunder shall expire if all conditions to
the closing and initial funding of the homebuyer transaction, are not satisfied by the
within 60 days after the effective date of this Contract, unless the Department, in its sole
discretion, chooses to extend the elate in writing
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T:\nspolNSP1 Conlin! Files1P1 Agreements for HI31 102213, i4SP (contracts funded wiih 1'I funds PIN/NI—doe 22 of 23
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IN WITNESS WI-IEREOF, each of the Parties has executed this Contract as of the dates
written below.
DEPARTMENT: TEXAS DEPARTMENT OF HOUSING AND
COMMUNITY. AFFAIRS, a public and official agency
of the State of Texas
By:
Its duly authorized officer or representative
Name:
Date:
SUBGRANTEE: City of Port Arthur, a political subdivision of the State
of Texas
By: _.
Floyd T. Johnson, City Manager
Date:
TMspdtNSP1 Contract Filcs1P1 Agreements for HB\102213_NSP 1 contracts funded with P1 funds P1NAL.doc 23 of 23