HomeMy WebLinkAboutResolutions - 2012.08.01 - 20454MISCELLANOUS RESOLUTION #12182 July 18, 2012
BY: PLANNING AND BUILDING COMMITTEE DAVID W. POTTS CHAIRPERSON
IN RE: DEPARTMENT OF ECONOMIC DEVELOPMENT & COMMUNITY AFFAIRS — COMMUNITY &
HOME IMPROVEMENT DIVISION — HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME)
SUBRECIPIENT AGREEMENT BETWEEN THE CITY OF PONTIAC AND COUNTY OF OAKLAND
FOR HOME PROGRAM YEARS (PY) 2010, 2011 AND 2012 FUNDING
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS the City of Pontiac as a HOME Investment Partnerships Program (HOME)
Participating Jurisdiction (PJ) qualifies to receive annual HOME funding directly from the U.S. Department
of Housing and Development (HUD); and
WHEREAS the City of Pontiac as a PJ is allowed by HUD to contract with eligible entities to
administer HOME activities on the City's behalf through a Subrecipient Agreement which stipulates the
administrative and compliance requirements associated with administering federal HOME funds; and
WHEREAS the City of Pontiac has requested Oakland County to administer HOME funds totaling
$1,338,709 from Program Years (PY) 2010 ($532,114), 2011 ($470,397) and 2012 ($336,198) due to the
City's declining administrative capacity to implement HOME activities; and
WHEREAS Oakland County is a HUD approved HOME PJ with the capacity to administer HOME
activities on the City's behalf; and
WHEREAS Oakland County will implement a housing rehabilitation program (also referred to as
the Oakland County Home Improvement Loan Program) to improve qualified City of Pontiac single family
owner occupant housing units and implement the Community Housing Development Organization
(CHDO) affordable housing development program set aside within the City of Pontiac as stated in the
attached Subrecipient Agreement effective June 1, 2012 through June 30, 2015; and
WHEREAS no HOME Program matching funds are required for these programs as HUD has
qualified the City of Pontiac to receive a 100% match reduction as a distressed City; and
WHEREAS the Subrecipient Agreement has been reviewed and approved by Corporation
Counsel.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners
authorizes the Subrecipient Agreement with the City of Pontiac to administer HOME funds totaling
$1,338,709 from Program Years (PY) 2010 (3532,114), 2011 ($470,397) and 2012 ($336,198); and
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners authorizes both
the Board of Commissioners' Chairperson and the County Executive to execute the Subrecipient
Agreement and to approve amendments and extensions up to fifteen percent (15%) variance from the
original agreement; and
Chairperson, on behalf of the Planning and Building Committee, I move the adoption of the
foregoing resolution.
PLANNING AND BUILDING COMMITTEE
PLANNING & BUILDING COMMITTEE VOTE:
Motion carried unanimously on a roll call vote with Jackson absent.
HOME Investment Partnerships Program (HOME)
Subrecipient Agreement Between the
City of Pontiac and County of Oakland
for HOME Program Years (PY) 2010, 2011 and 2012 Funding
U.S. Department of Housing and Urban Development (HUD)
Catalog of Federal Domestic Assistance (CFDA) HOME Program #14.239
INTRODUCTION
This agreement is entered into by and between the City of Pontiac (herein called the
"Grantee"), and the County of Oakland, a Michigan constitutional corporation (herein called
the "Subrecipient") in accordance with HOME Investment Partnerships Program (HOME)
regulations at 24 CFR part 92. The Grantee is designated as a Participating Jurisdiction and
has applied for and received funds from the United States Department of Housing and Urban
Development (herein called "HUD") under the HOME Investment Partnerships Act at title II of
the Cranston Gonzalez National Affordable Housing Act, as amended, 42 U.S.0 12701 et seq.
to strengthen public-private partnerships and to expand the supply of decent, safe, sanitary
and affordable housing for very low-income and low-income families.
As a Participating Jurisdiction, the Grantee has received HOME funds for program year (PY)
2010 and PY 2011 and is expected to receive additional HOME funds for PY 2012. The
Grantee's HOME program year begins July 1 and ends June 30. It is the purpose and intent of
this Subrecipient Agreement to enable the Grantee to exercise its right and authority under the
HOME Program to allocate a portion of the Grantee's funds to the Subrecipient for purposes of
administering eligible activities on the Grantee's behalf, as described in this agreement. The
following statements and provisions are acknowledged and agreed upon by and between the
parties.
I. TIME PERIOD
This agreement is made and entered into this 1st day of June, 2012 and shall go into effect
on this day to obligate and expend FY 2010 and PY2011 HOME funding and, contingent on
HUD's award of PY 2012 funds to the Grantee, to obligate and expend PY 2012 HOME funds.
This agreement will remain in effect through June 30, 2015 or until the expiration of the record
retention period specified in this agreement, whichever is longer.
II. FUNDING ALLOCATION
The Grantee allocates to the Subrecipient PY 2010 funds of $532,114, PY2011 funds of
$470,397 and, contingent on HUD's award of PY2012 funds to the Grantee, PY2012 funds of
$336,198.
III. STATEMENT OF WORK
Activities
The Subrecipient will be responsible for administering two HOME eligible activities:
1. A housing rehabilitation program, also referred to as the Oakland County
Home Improvement Loan Program to improve qualified City of Pontiac
single family owner occupant housing units, and
2. Community Housing Development Organization (CHDO) affordable
housing development program set aside (24 CFR Part 92, Subpart G,
Section 92.300) within the City of Pontiac.
The Subrecipient will administer all tasks in connection with the aforesaid programs in
compliance with all applicable Federal, state and local rules and regulations governing
these funds.
Attachment A constitutes the draft HOME statement of work and budget, including
scope of work, budget, levels of accomplishment, project schedule and goals and
performance measures. The draft HOME statement of work and budget are based on
proposed amendments to the Grantee's approved FY 2010 and PY 2011 action plans
and the Grantee's proposed PY 2012 action plan. Upon HUD approval of the Grantee's
PY 2012 action plan and the completion of any amendments to the Grantee's PY 2010
and PY 2011 action plans, the Grantee and Subrecipient shall make adjustments as
necessary to make the statement of work and budget consistent with the Grantee's
approved action plans and amendments completed in accordance with 24 CFR 91.505
and the Grantee's citizen participation plan.
The Grantee may require a more detailed budget breakdown than the budget contained
in Attachment A, and the Subrecipient shall provide such supplementary budget
information in a timely manner in the form and content prescribed by the Grantee.
Amendments to the budget must be approved in writing by both the Grantee and the
Subrecipient. No indirect costs shall be charged under this agreement.
The Subrecipient shall assign and maintain 1.5 full time equivalent staff to administer
HOME activities and expend funds as specified in Attachment A, provided these staffing
and other costs are consistent with the Grantee's approved action plans and any
amendments completed in accordance with 24 CFR 91.505 and the Grantee's citizen
participation plan. Any changes in the key personnel assigned or their general
responsibilities under this project are subject to the prior approval of the Grantee.
The Grantee shall monitor the performance of the Subrecipient in accordance with the
HOME goals and performance standards and federal HOME regulations.
IV. PAYMENT
The Subrecipient shall not be paid HOME administration funds from an administration line
item. The Subrecipient shall be permitted to charge HOME project service delivery costs to
each project, provided the costs are eligible under 24 CFR 92.206 and consistent with the
Grantee's approved action plans and any amendments completed in accordance with 24 CFR
91.505 and the Grantee's citizen participation plan.
The Subrecipient shall not request disbursement of funds under this agreement until the funds
are needed for payment of eligible costs and shall limit the amount of each request to the
amount needed. Program income, as defined under 24 CFR 92.2, shall be disbursed before
the Subrecipient requests grant funds.
V. SPECIAL CONDITIONS
A. 100% Match Reduction
The U.S. Department of Housing and Urban Development has determined that the City of
Pontiac has met the severe fiscal distress criteria for a 100% match reduction for HOME
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Program Participating Jurisdictions (PJs) in accordance with 24 CFR 92.222 of the HOME
Program regulations. The period of match reduction covers HOME PY2010, 2011 and 2012.
B. Grantee Non-compliance
The Subrecipient shall not be responsible or liable for the Grantee's past or future actions of
non-compliance in administering HOME funds as the Grantee or for monitoring or audit
findings levied against the City of Pontiac pertaining to HOME program issues outside the
specific requirements of this Agreement.
C. Environmental Review
In accordance with 24 CFR 92.352, no funds may be committed to any HOME activity or
project before the completion of the required environmental review and approval of the request
for release of funds and related certification, except as authorized by 24 CFR part 58. The
Subrecipient shall supply all available, relevant information necessary for the Grantee to
complete any environmental review required for a project to be funded under this agreement.
The Subrecipient shall not assume the Grantee's legal responsibilities for environmental review
under 24 CFR 92.352.
D. Subsidy Layering Requirements
Before committing HOME funds to any project to be funded under this agreement, the
Subrecipient shall conduct a subsidy layering review of that project in accordance with the
guidelines specified in CPD Notice 98-1, issued January 22, 1998. The Subrecipient shall not
provide any project funded under this agreement with more HOME funds than are necessary
to provide affordable housing.
E. Affordability requirements
The Subrecipient shall ensure the projects funded under this agreement comply with the
affordability requirements under 24 CFR 92.254. The Subrecipient shall ensure that the
purchase price of each homebuyer unit and the estimated value of each homeowner unit after
rehabilitation do not exceed the Single Family Mortgage Limits under Section 203(b) of the
National Housing Act (12 U.S.C. 1709(b)). The Subrecipient shall ensure that the projects
funded under this agreement will be limited to individuals or families whose annual incomes do
not exceed 80 percent of the median income for the area, as determined by HUD. When
determining whether an individual or family is income eligible, the Suhrecipient must use the
definition of "annual income" under 24 CFR 5.609 (except when determining the income of a
homeowner for an owner-occupied rehabilitation project, the value of the homeowner's
principal residence may be excluded from the calculation of Net Family Assets).
The Subrecipient shall comply with the recapture requirements established in the Grantee's
Consolidated Plan. If a homebuyer's property does not continue to be the principal residence
of the homebuyer for the duration of the affordability period, the Subrecipient must recapture
100% of the HOME loan or the net proceeds of the sale or transfer of the property, whichever
amount is less. The Subrecipient will ensure this requirement by placing a lien on the property
for the loan amount through a recorded mortgage document that the Subrecipient and Grantee
may each legally enforce. The Subrecipient will retain and use all recaptured funds to carry
out additional eligible activities under 24 CFR part 92.
VI. GENERAL CONDITIONS
A. General Compliance
The Subrecipient agrees to comply with all applicable requirements of Title 24 of the Code of
Federal Regulations, Part 92, the U.S. Housing and Urban Development regulations
concerning the HOME Investment Partnerships Program, including Subpart H of these
regulations, except that (1) the Subrecipient does not assume the Grantee's legal
responsibilities for environmental review under 24 CFR 92.352 and (2) the intergovernmental
review process in 24 CFR 92.357 does not apply. The Subrecipient further agrees to comply
with all other applicable Federal, state and local laws, regulations, and policies governing the
funds provided under this Agreement.
B. Relationship of Grantee and Subrecipient
For purposes of this agreement, the relationship of the Subrecipient to the Grantee shall be
that of two independent governmental entities. No partnership, association, or joint enterprise
shall arise between the parties hereto as a result of any provision of this agreement nor shall
any provision herein be construed as making an employee of the Subrecipient an agent or
employee of the Grantee.
C. Hold Harmless
Each party to this Agreement will remain responsible for any claims arising out of that party's
performance of this Agreement as provided by this Agreement or by law. This Agreement is
not intended to increase or decrease either party's liability for or immunity from tort claims.
This Agreement is not intended to nor will it be interpreted as giving either party a right of
indemnification, either by Agreement or at law, for claims arising out of the performance of this
Agreement.
D. Workers' Compensation
The Subrecipient shall provide Workers' Compensation Insurance coverage for all of its
employees involved in the performance of this Agreement.
E. Insurance
The Subrecipient shall carry sufficient insurance coverage, or self-insurance, to protect
contract assets from loss due to theft, fraud and/or undue physical damage.
F. Notification of Legal Action
The Subrecipient shall notify the Grantee, through the Emergency Manager's or Mayor's
Office, in writing, of its intent to pursue a claim against the Grantee for breach of any of the
terms of this agreement. No suit may be commenced by the Subrecipient for breach of this
contract prior to the expiration of ninety days from the date of such notification. Within this
ninety-day period, the Subrecipient, at the request of the Grantee, must meet with an
appointed representative of the Grantee for purposes of attempting to resolve the dispute.
G. Amendments
The Grantee or Subrecipient may amend this Agreement at any time provided that such
amendments make specific reference to this Agreement, and are executed in writing, signed
by a duly authorized representative of each organization, and are approved by the Grantee.
Such amendments shall not invalidate this Agreement, nor relieve or release the Grantee or
Subrecipient from its obligations under this Agreement.
The Grantee may, in its discretion, amend this Agreement to conform with Federal, state or
local governmental guidelines, policies and available funding amounts, or for other reasons, If
such amendments result in a change in the funding, the scope of services, or schedule of the
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activities to be undertaken as a part of this Agreement, such modifications will be incorporated
only by written amendment signed by both Grantee and Subrecipient.
H. Suspension or Termination
In accordance with 24 CFR 85.43, the Grantee may suspend or terminate this Agreement if the
Subrecipient materially fails to comply with any term of this Agreement. Written suspension or
termination notice will be sent to the Subrecipient by the Grantee to the Subrecipient's
business address. The Subrecipient's termination by the Grantee or HUD for program
noncompliance does not relieve it of the obligations concerning Reversion of Assets, nor the
requirements of Record Retention (see Section VII), nor of being monitored and/or audited by
the Grantee or HUD regarding the Subrecipient's HOME program performance prior to
termination or suspension.
This Agreement may also be terminated for convenience by either the Grantee or the
Subrecipient, in whole or in part, by setting forth the reasons for such termination, the effective
date, and in the case of partial termination, the portion to be terminated. However, if in the
case of partial termination, the Grantee determines that the remaining portion of the award will
not accomplish the purpose for which the award was made, the Grantee may terminate the
award in its entirety.
VII. ADMINISTRATIVE REQUIREMENTS
A. Financial Management - Accounting Standards and Cost Principles
The Subrecipient shall administer HOME funds in conformance with applicable requirements of
OMB Circular A-87 "Cost Principles for State and Local Governments", OMB Circular A-133
"Audits of States and Local Governments and Non-Profit Organizations" and 24 CFR 92.505
Uniform Administrative Requirements.
The Subrecipient shall ensure an overall program and financial management system that
maintains effective control over and accountability for all HOME projects and funds received.
The Subrecipient shall maintain its financial records such that the Grantee's HOME funds are
maintained in a separate account from all other asset accounts.
B. Documentation and Record Keeping
1. Records to be Maintained
The Subrecipient shall maintain all records required by the HOME regulations at 24
CFR 92.508 that are pertinent to the activities to be funded under this Agreement and
required for monitoring and audit reviews. At a minimum, the Subrecipient shall
maintain the records described in Attachment B. All accounting records shall be
supported by source documentation such as cancelled checks, paid bills, payrolls, time
and attendance records, and contract documents.
2. Retention
Unless a longer period is specified in this paragraph, the Subrecipient shall retain all
HOME project and financial records, supporting documents, statistical records and all
other records pertinent to the Agreement on behalf of the Grantee for a period of seven
years after the Grantee has approved the final payment for the project and closed all
pending matters related to the Subrecipient's grant in a given program year.
Documents imposing recapture restrictions must be retained for at least five years after
the affordability period terminates. Written agreements must be retained for at least five
5
years after the agreement terminates. Records covering displacements and acquisition
must be retained for at least five 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 §92.353.
Records for nonexpendable real property purchased with HOME funds must be retained
for seven years after its final disposition. If any litigation, claim or audit is started before
the expiration of the seven year period, then records must be retained for seven years
after the litigation, claim or audit is resolved. Before this agreement terminates, the
Subrecipient must submit copies or originals of all records required under this
agreement to the Grantee.
3. Disclosure
The subrecipient must provide citizens, public agencies, and other interested parties
with reasonable access to the records retained under this agreement, consistent with
applicable state and local laws regarding privacy and obligations of confidentiality.
HOME records are public to the extent allowed by State and Federal Freedom of
Information Act laws. Client information collected under this Agreement is private and
the use or disclosure of such information, when not directly connected with the
administration of the Grantee's or Subrecipient's responsibilities with respect to services
provided under this Agreement, is prohibited unless written consent is obtained from
such client or guardian.
4. Close-outs
The Subrecipient's obligation to the Grantee regarding activities performed under this
agreement shall remain in effect during any period that the Subrecipient has control
over HOME funds including program income and until all HOME grant close-out
requirements are completed including home affordability periods and the duration of
home improvement loan assistance to homeowners.
5. Conflict of interest
In the procurement of property and services by the Subrecipient, the conflict of interest
provisions in 24 CFR 85.36(b)(3) apply. In any non-procurement situation, no employee,
agent, consultant, officer, elected or appointed official of the Subrecipient who exercises
or has exercised any functions or responsibilities with respect to activities assisted
under this Agreement or who are in a position to participate in a decision making
process or gain inside information with regard to these activities may obtain a financial
interest or benefit from a HOME assisted activity or have an 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.
In certain circumstances, an exception may be granted to this prohibition upon written
request of the Grantee to HUD which evidences the following: 1) disclosure of the
nature of the conflict and evidence that the conflict was disclosed publicly; and 2) an
opinion of the Grantee's attorney that the interest for which the exception is sought
would not violate state or local law. Prior to requesting an exception from HUD, the
Subrecipient must follow its written procedures for requesting internal approval of the
conflict of interest exception, which includes discussion of the matter at a public
meeting. The Subrecipient shall ensure each CHDO funded under this agreement
complies with the conflict of interest requirements at 24 CFR 84.42 and 92.356(f).
6. Monitoring, Audits and Inspections
The Grantee will monitor the Subrecipient's performance under the Agreement not less
than once per year. All Subrecipient records with respect to any matters covered by this
Agreement shall be made available to the Grantee, HUD, and the Comptroller General
of the United States or any of their authorized representatives, at any time during
normal business hours, as often as deemed necessary, to monitor, audit, examine, and
make excerpts or transcripts of all relevant data. The Subrecipient shall ensure the
Grantee has a legally enforceable right to monitor all contracts or agreements with
contractors, CHDOs and program beneficiaries. Any deficiencies noted in monitoring
or audit reports must be fully cleared by the Subrecipient within 60 days after receipt by
the Subrecipient. Failure of the Subrecipient to comply with the above audit
requirements will constitute a violation of this Agreement and may result in the
withholding of future payments. The Subrecipient shall also comply with the provisions
of the Single Audit Act of 1984, the Single Audit Act Amendments of 1996 (31 U.S.C.
7501-7507) if applicable and OMB Circular A-133.
C. Program Income
The Subrecipient shall retain any and all HOME program income received resulting from
HOME projects and services performed under this Agreement, including income
generated by CHDO activities funded under this agreement (CHDO proceeds). Program
Income received shall be accounted for and administered to carry out additional eligible
HOME projects in compliance with Federal HOME Regulations.
D. Progress and Performance Reports
The Subrecipient shall report on its progress or performance to the Grantee in the form,
content and frequency as required by the Grantee in order to comply with federal
Consolidated Annual Performance and Evaluation Report (CAPER) and other reporting
requirements.
The Subrecipient shall minimally provide the Grantee quarterly electronic Home
Improvement Program and CHDO performance reports identifying activities, property
addresses, program beneficiaries, expenditures, completions, women/minority owned
business performance. All information necessary to complete the CAPER and labor
reports will be provided. The Subrecipient shall also enter project information into IDIS
on behalf of the Grantee, as required under 24 CFR 92.502.
E. Procurement. Subgrants and Written Agreements
The Subrecipient shall comply with 24 CFR 85.36 procurement standards.
All persons, agencies, suppliers, organizations, etc. selected by the Subrecipient to
carry out activities funded in whole or in part with HOME funds are vendors, contractors
or qualified HOME Program Community Housing Development Organizations (CHDO).
The Subrecipient shall have written agreements for program participants, contractors
and CHDOs that comply with the requirements of 24 CFR 92.504. The Subrecipient
shall not subgrant HOME funds to any person or non-profit or private for-profit
organization or agency. The Subrecipient shall ensure that each written agreement with
a contractor, CHDO or program participant explicitly provides the PJ with a legally
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cognizable right to independently enforce the terms of the written agreement against the
contractor, CHDO or program participant, as applicable, should the Subrecipient fail to
enforce the appropriate available legal remedies.
F. Use and Reversion of Assets
Upon expiration of the Agreement, the Subrecipient shall transfer any HOME funds on
hand and any applicable accounts receivable attributable to the use of HOME funds
under this Agreement to the Grantee or HUD.
VIII. OTHER PROGRAM REQUIREMENTS
Nondiscrimination and Equal Opportunity
The Subrecipient must comply with Federal nondiscrimination and equal opportunity
requirements established at 24 CFR Part 5 Subpart A (referenced at 24 CFR 92.350). The
Subrecipient must administer housing programs in a manner free from discrimination. Housing
assisted with HOME funds must be made available without discrimination based on race,
color, national origin, age, sex, religion, familial status, or disability in accordance with Federal
fair housing laws. The Subrecipient must include and enforce the nondiscrimination
requirements in written agreements with contractors and CHDOs.
Affirmative Marketing and Minority Outreach
The Subrecipient will not undertake any homebuyer projects containing 5 or more HOME-
assisted units requiring affirmative marketing. The Subrecipient must comply with its HOME
Program minority outreach procedures established in accordance with 24 CFR 92.351.
CHDOs will be required to follow the Subrecipient's advertisement and bid requirements for
minority outreach.
Displacement, Relocation and Acquisition
The Subrecipient must take all reasonable steps to minimize the displacement of persons
(families, individuals, businesses, nonprofit organizations, and farms) as a result of a project
assisted with HOME funds. For activities that may involve temporary relocation of residential
tenants, permanent displacement of persons (families, individuals, businesses, nonprofit
organizations, and farms), or acquisition of real property, the Subrecipient must ensure that all
applicable displacement, relocation, and acquisition rules are followed, including requirements
of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970
(URA)(42 U.S.C. 4201-4655), the implementing regulations at 49 CFR Part 24, and HOME
Program requirements related to displacement, relocation, and acquisition at 24 CFR 92.353.
Labor
The projects to be funded under this Agreement shall not involve construction contracts
subject to the labor requirements under 24 CFR 92.354. However, if any program income or
recaptured funds from these projects are used for other activities to which the labor
requirements apply, the Subrecipient shall ensure compliance with those labor requirements.
Section 3
The Subrecipient must comply with section 3 of the Housing and Urban Development Act of
1968 (12 U.S.C. 1701u), and implementing regulations at 24 CFR part 135. The Subrecipient
must carry out the responsibilities described in 24 CFR 135.32.
Lead-Based Paint Standards
Witnessed
Date 244 ;
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The SuhrRelpiPmt must apply HUD's paint disclosure and remPrliAtinn requirements
(24 CFR Part 35) to all projects involving housing constructed before 1978, except housing for
the elderly or persons with disabilities (unless any child who is less than 6 years of age resides
or is expected to reside in such housing) or any 0-bedroom dwelling.
Anti-Lobbying and Disclosure
The Subrecipient must comply with the anti-lobbying and disclosure requirements of
31 U.S.C. 1352 and the implementing regulations at 24 CFR part 87.
Debarred, Suspended. or Ineligible Contractors and Participants
The Subrecipient must comply with Subpart C of the OMB guidance in 2 CFR Part 180, as
supplemented by HUD's requirements in 2 CFR Part 2424, and must not enter into any
transaction with a debarred or suspended person in administering and delivering HOME
activities, except as permitted under 2 CFR part 180. The recipient must include a term or
condition requiring compliance with subpart C of the OMB guidance in 2 CFR part 180, as
supplemented by 2 CFR Part 2424, in each written agreement with a CHDO or contractor
where the value of the agreement is expected to equal or exceed $25,000.
Drug-Free Workplace
The subrecipient must carry out its HOME activities in accordance with the Drug-Free
Workplace Act of 1988 (41 U.S.C. 701 et. seq.) and HUD's implementing regulations at 24
CFR part 21.
IX. 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 nevertheless be in full force and
effect.
IN WITNESS WHEREOF, the authorized representatives of the City of Pontiac and the County
of Oakland have signed this agreement below, and agree to abide by all terms as set forth
herein.
QiJ of Pontiac by 4 .
Louis H. Schimmel, Emergency Manager
Date - o
L. Brooks Pattersol2,(County Executive ----
DateL.,/,6,1;?0/
Witnessed 7c-"
Date ZP-41//v‘
I
6Iichael J. GinbrChairpers
Oakland Count Board of Commissioners
Date /-1-/
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Witnessed -V
Date
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ATTACHMENT A
SCOPE OF WORK
ACTIVITIES
Activity #1 HOME IMPROVEMENT PROGRAM
Oakland County will administer a comprehensive Home Improvement Loan Program (HIP) for
Single Family Owner-Occupied Households Located in Pontiac
• Moderate Rehabilitation
• Households must income qualify as "Low Income" (80% of area median income) or less
as defined by HUD Section 8 Income Limits
• Loans are deferred, 0% interest
• Work is bid and performed by pre-qualified licensed and insured contractors as
specified by Oakland County to make the home decent, safe and sanitary
• Oakland County monitors work during construction and authorizes contractor payment
• Work performed complies with the Michigan Residential Code, Residential Construction
Performance Guidelines (Published by the National Association of Home Builders),
Oakland County Community & Home Improvement Guidelines and local building codes
Activity #2 SINGLE FAMILY HOMEBUYER PROGRAM
Community Housing Development Organizations (CHDOs)
• Oakland County as a HOME PJ, will contract PY2010 and PY2011CHDO set-aside
funds to existing qualified Oakland County CHDOs by August 30, 2012 to meet
Pontiac's 24-month CHDO reservation deadline
• PY2012 CHDO reserves will be contracted to pre-qualified Oakland County CHDOs to
develop affordable housing in Pontiac by August 30, 2013
• Oakland County re-certifies CHDOs annually and prior to contractual obligation
• Qualified CHDOs will implement eligible single family HOME homebuyer activities
through acquisition and rehabilitation or new development under the oversight and
monitoring of Oakland County
• Affordable housing will be provided to households that income qualify as "Low Income"
(80% of area median income) or less as defined by HUD Section 8 Income Limits
• Homebuyer assistance will be provided to make a home affordable to a purchaser
under the HOME recapture provision
• Work performed complies with the Michigan Residential Code, Residential Construction
Performance Guidelines (Published by the National Association of Home Builders,
Oakland County Community & Home Improvement Guidelines and local building codes
LEVELS OF ACCOMPLISHMENT AND GOALS AND PERFORMANCE MEASURES
ACTIVITY AVG. # UNITS/MONTH TOTAL # UNITS/YEAR TOTAL # UNITS
(Single Family Housing) (Single Family Housing) (Single Family Hsg)
#1 HIP 2 25 50
Note: Oakland County will obligate 3443,428 to a minimum of 20 households by August 30,
2012, $391,997 to a minimum of 17 households by August 30, 2013 and $280,165 to a
minimum of 13 households to meet Pontiac's 24-month reservation deadlines for PY2010,
1 0
PY2011 and PY2012.
All HIP funds will be expended by June 30, 2015
#2 CHDOs N/A 1
Note: CHDO projects will be completed and funds expended by June, 2015.
STAFFING LEVELS
POSITION TITLE ANNUAL FULL TIME ANNUAL
EQUIVALENTS (FTE) SALARY/FRINGE
BENEFIT COSTS
Chief of Operations/Finance Officer .125 $17,625
HOME Program Coordinator/
HIP Administration Supervisor .25 $ 30,350
HIP Field Technician .375 $ 43,380
Community & Home Improvement Assistant .125 $ 9,640
Community & Home Improvement Coordinator .25 $ 20,750
Community & Home Improvement Technician .25 $ 24,265
Accountant III .125 $ 12,565
Total Full Time Equivalents 1.50 $140,950
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BUDGET
REVENUES
2010 HOME Grant
2011 HOME Grant
2012 HOME Grant
Total Revenues
$ 532,114
$ 470,397
$ 336,198
$1,338,709
PROPOSED TWO YEAR AGREEMENT LINE ITEM BUDGET
Line Item Amount
CHDO 15% Set-aside $ 223,119
Housing Rehabilitation $1,115,590
Home Improvement Loans $833,690
Project Service Delivery Costs
Salaries/Fringe Benefits $281,900
Total Budget $1,338,709
Note: Only salary and fringe benefit costs will be charged as project service delivery costs to
each project. Other project service delivery costs and expenses for County general
administration will be absorbed through or paid by other eligible source funding.
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ATTACHMENT B
At a minimum, the subrecipient will maintain the following records regarding the funds and
activities subject to this agreement:
(a) Records of the efforts to maximize participation by the private sector as required by
§92.200.
(b) The forms of HOME assistance used in the program, including any forms of investment
described in the Consolidated Plan under 24 CFR part 91 which are not identified in
§92.205(b).
(c) If HOME funds are used for homeownership housing, the procedures used for establishing
95 percent of the median purchase price for the area in accordance with §92.254(a)(2), in
the Consolidated Plan.
(d) Records documenting compliance with the 24 month commitment deadline of §92.500(d).
(e) Records demonstrating compliance with the fifteen percent CHDO, set-aside requirement of
§92.300(a).
(f) A full description of each project assisted with HOME funds, including the location, form of
HOME assistance, and the units assisted with HOME funds.
(g) The source and application of funds for each project, including supporting documentation in
accordance with 24 CFR 85.20,
(h) Records demonstrating that each homeownership project meets the minimum per-unit
subsidy amount of ,592.205(c), the maximum per-unit subsidy amount of §92.250(a) and
the subsidy layering guidelines adopted in accordance with §92.250(b).
(i) Records demonstrating that each project meets the property standards of §92.251 and the
lead based paint requirements of §92.355.
(j) Records demonstrating that each family is income eligible in accordance with §92.203.
(k) Records demonstrating that the purchase price or estimated value after rehabilitation for
each homeownership housing project does not exceed 95 percent of the median purchase
price for the area in accordance with §92.254(a)(2). The records must demonstrate how the
estimated value was determined.
(I) Records demonstrating that each homeownership project meets the affordability
requirements of §92.254 for the required period.
(m) Written agreements reserving HOME funds to CHDOs in accordance with §92.300(a).
(n) Records setting forth the efforts made to identify and encourage CHDOs, as required by
§92.300(b).
(o) The name and qualifications of each CHDO and amount of HOME CHDO set-aside funds
reserved and committed.
(p) Records demonstrating that each CHDO complies with the written agreements required by
§92.504.
(q) Records concerning the use of CHDO set-aside funds, including funds used to develop
CHDO capacity pursuant to §92.300(b).
(r) Records concerning the use of funds for CHDO operating expenses and demonstrating
compliance with the requirements of §92.208, §92.300(e) and §92.300(f).
(s) Records concerning project-specific assistance to CHDOs pursuant to §92.301, including
the impediments to repayment, if repayment is waived.
(t) Records identifying the source and application of funds for each fiscal year, including the
formula allocation, any reallocation (identified by federal fiscal year appropriation), and any
State or local funds provided under §92.102(b).
(u) Records concerning the HOME Investment Trust Fund Treasury account and local account
12
required to be established and maintained by §92.500, including deposits, disbursements,
balances, supporting documentation and any other information required by the program
disbursement and information system established by HUD.
(v) Records identifying the source and application of program income, repayments and
recaptured funds.
(w) Records demonstrating adequate budget control, in accordance with 24 CFR 85.20,
including evidence of periodic account reconciliations.
(x) Records demonstrating compliance with the written agreements required by §92.504.
(y) Records demonstrating compliance with the applicable uniform administrative requirements
required by §92.505.
(z) Records documenting required inspections, monitoring reviews and audits, and the
resolution of any findings or concerns.
(as) Data on the extent to which each racial and ethnic group and single-headed households
(by gender of household head) have applied for, participated in, or benefited from, any
program or activity funded in whole or in part with HOME funds.
(bb) Documentation of actions undertaken to meet the requirements of 24 CFR part 135
which implements section 3 of the Housing Development Act of 1968, as amended (12
U.S.C. 1701u).
(cc) Documentation of the actions the participating jurisdiction has taken to affirmatively
further fair housing.
(dd) Documentation and data on the steps taken to implement the jurisdiction's outreach
programs to minority-owned (MBE) and female-owned (VVBE) businesses including data
indicating the racial/ethnic or gender character of each business entity receiving a contract
or subcontract of $25,000 or more paid, or to be paid, with HOME funds; the amount of the
contract or subcontract, and documentation of participating jurisdiction's affirmative steps to
assure that minority business and women's business enterprises have an equal opportunity
to obtain or compete for contracts and subcontracts as sources of supplies, equipment,
construction, and services.
(ee) Records demonstrating compliance with the environmental review requirements of
§92.352 and 24 CFR part 58, including flood insurance requirements.
(if) Records demonstrating compliance with the requirements of §92.353 regarding
displacement, relocation, and real property acquisition, including project occupancy lists
identifying the name and address of all persons occupying the real property on the date
described in §92.353(c)(2)(i)(A), moving into the property on or after the date described in
§92.353(c)(2)(i)(A), and occupying the property upon completion of the project.
(gg) Records demonstrating compliance with the labor requirements of §92.354, if
applicable, including contract provisions and payroll records.
(hh) Records demonstrating compliance with the lead-based paint requirements of 24 CFR
part 35, subparts A, B, J, K, M and R.
(ii) Records supporting exceptions to the conflict of interest prohibition pursuant to §92.356.
(jj) Records demonstrating compliance with debarment and suspension requirements in 2 CFR
part 2424.
13
Resolution #12182 July 18, 2012
The Chairperson referred the resolution to the Finance Committee. There were no objections.
FISCAL NOTE (MISC. #12182) August 1, 2012
BY: FINANCE COMMITTEE, TOM MIDDLETON, CHAIRPERSON
IN RE: DEPARTMENT OF ECONOMIC DEVELOPMENT & COMMUNITY AFFAIRS —
COMMUNITY & HOME IMPROVEMENT DIVISION — HOME INVESTMENT
PARTNERSHIPS PROGRAM (HOME) SUBRECIPIENT AGREEMENT BETWEEN THE
CITY OF PONTIAC AND COUNTY OF OAKLAND FOR HOME PROGRAM YEARS
(PY) 2010, 2011 AND 2012 FUNDING
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
Pursuant to Rule XII-C of this Board, the Finance Committee has reviewed the above
referenced resolution and finds:
1. The City of Pontiac as a HOME Investment Partnerships Program (HOME)
Participating Jurisdiction (PJ) qualifies to receive annual HOME funding directly
from the U.S. Department of Housing and Development (HUD).
2. The City of Pontiac as a PJ is allowed by HUD to contract with eligible entities to
administer HOME activities on the City's behalf through a Subrecipient
Agreement.
3. The City of Pontiac has requested Oakland County to administer HOME funds
totaling $1,338,709 from Program Years (PY) 2010 ($532,114), 2011 ($470,397)
and 2012 ($336,198) due to the City's declining administrative capacity to
implement HOME activities.
4. Oakland County will implement a housing rehabilitation program (also referred to
as the Oakland County Home Improvement Loan Program) to improve qualified
City of Pontiac single family owner occupant housing units and implement the
Community Housing Development Organization (CHDO) affordable housing
development program set aside within the City of Pontiac.
5. No HOME Program matching funds are required for these programs as HUD has
qualified the City of Pontiac to receive a 100% match reduction as a distressed
City.
6, The County, as the Subrecipient, shall not be paid HOME administration funds,
but shall be permitted to charge HOME project service delivery costs to each
project. The project delivery costs are listed as $281,900 (or $140,950 annually
for FY 2010 and FY 2011).
7. Subrecipient Agreement is effective June 1,2012 through June 30, 2015.
8. FY2010-2012 budget is amended as follows:
Home Inv Partner Act Pontiac Fund #29712
Revenue
1090659-132230-610313 Grant Federal
Total Revenue
Expenditures
1090659-132230-730275 CHDO Rehab
1090659-132230-730891 HousReSpec
Total Expenditures
FY 2010 FY 2011 FY2012
$532,114 $470,397 $336,198
$532,114 $470.397 $336,198
$ 88,686 $ 78,400 $ 56,033
443,428 391,997 280,165
$532.114 $470,397 $336,198
FINANCE COMMITTEE
FINANCE COMMITTEE
Motion carried unanimously on
absent.
a roll call vote with Long and Quarles
Resolution #12182 August 1,2012
Moved by Weipert supported by McGillivray the resolutions (with fiscal notes attached) on the amended
Consent Agenda be adopted (with accompanying reports being accepted).
AYES: Covey, Crawford, Dwyer, Gershenson, Gingell, Gosselin, Hatchett, Hoffman, Jackson,
Long, Matis, McGillivray, Middleton, Nash, Nuccio, Potts, River, Runestad, Scott, Taub, Weipert,
Woodward, Zack, Bosnic. (24)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the amended
Consent Agenda were adopted (with accompanying reports being accepted).
(,)
I HEREBY APPROVE THIS RESOLUTION
CHIEF DEPUTY COUNTY EXECUTIVE
ACTING PURSUANT TO MCL 45.559A (7)
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Bill Bullard Jr., Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true
and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on August 1,
2012, with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at
Pontiac, Michigan this 1 st day of August, 2012.
P.,um 094
Bill Bullard Jr., Oakland County