HomeMy WebLinkAboutResolutions - 1996.05.23 - 24842MISCELLANEOUS RESOLUTION A96116 May 23, 1996
BY: PLANNING AND BUILDING COMMITTEE, CHARLES E. PALMER, CHAIRPERSON
IN RE: COMMUNITY AND ECONOMIC DEVELOPMENT DEPARTMENT - COMMUNITY
DEVELOPMENT DIVISION - FY 1994 HOME INVESTMENT PARTNERSHIPS PROGRAM
CONTRACT WITH VENTURE, INC.
TO 'THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
WHEREAS the United States Congress enacted the HOME Investment Partnership Act, Title
II of the Cranston-Gonzalez National Affordable Housing Act (P.L. 101-625) in 1990; and
WHEREAS the U. S. Department of Housing and Urban Development awarded the County
of Oakland a $1,143,000 HOME grant for the 1994 program year on May 1, 1994; and
WHEREAS the Oakland County Board of Commissioners accepted the grant on May 26,
1994; and
WHEREAS the federal HOME legislation mandates that at least 15% of HOME funds
($171,450) be allocated to Community Housing Development Organizations (CHD0s) which are
HUD-defined nonprofit organizations that have the capacity to develop affordable housing for
qualified low-income persons; and
WHEREAS federal HOME regulations allow the County to allocate additional funds equal to
10% of the CHDO allocation ($17,145) for CHDO operating expenses; and
WHEREAS the federal HOME legislation mandates a 25% match of funds allocated for
housing rehabilitation and new construction activities; and
WHEREAS the mandated match of $42,862 for Fiscal Year (FY) 1994 CHDO rehabilitation
and new construction activities was authorized by the Oakland County Board of Commissioners in
the 1993-1994 Biennial Budget and General Appropriations Act; and
WHEREAS the County of Oakland has qualified one CHDO, Venture, Inc., to receive the FY
1994 CHDO set aside;
WHEREAS this contract has been reviewed and approved as to form by the Office of
Corporation Counsel, Management and Budget, and Risk Management; and
WHEREAS the Oakland County Community Development Citizens Advisory Council
recommends approval of this contract.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners
be authorized to execute the attached contract with Venture, Inc., for the total sum of $231,457 to
acquire and rehabilitate existing vacant single-family houses or acquire vacant property and emplace
new single family modular homes not to exceed three houses, in communities belonging to the
Oakland County Urban County Program, as approved by the County, exclusively for subsequent sale
to qualified low-income home buyers.
Chairperson, on behalf of the Planning and Building Committee, I move the adoption of the
foregoing resolution.
PLANNING AND BUILDING COMMITTEE
FY 1994 HOME INVESTMENT PARTNERSHIPS PROGRAM
CONTRACT BETWEEN COUNTY OF OAKLAND
AND
VENTURE, INC.
SECTION I. CONTRACT
This Contract is made on the first day of June 1996 between the County of Oakland, Office of
Community Development, hereinafter designated as the "County", having its principle office at 1200
North Telegraph Road, City of Pontiac, State of Michigan, 48341-0414, and Venture, Inc.,
hereinafter designated as the "Agency" having its principle office at 196 Oakland Ave., P. O. Box
430598, City of Pontiac, State of Michigan, 48342-0598.
The effective dates of this Contract shall be from June 1, 1996 to May 31, 1998 and any additional
period/s the "County" and the "Agency" shall agree.
SECTION II. PURPOSE
The County of Oakland, as the Participating Jurisdiction (PJ) for HOME Investment Partnerships
Program funds available from the U.S. Department of Housing and Urban Development (HUD),
hereby contracts with Venture, Inc. to increase the supply of decent, safe, sanitary and affordable
housing for low income homebuyers in the communities belonging to the Oakland County Urban
County Program, as approved by the County (see Attachment A). This contract is executed
pursuant to the provisions of Title II of the Cranston-Gonzalez National Affordable Housing Act of
1990 as amended and implemented by HUD subject to the requirements of Section 24, Part 92 of
the Code of Federal Regulations (24 CFR et. seq.)
Funds provided by the County shall be expended in accordance with the requirements of 24 CFR,
92.206 (eligible costs). The Agency shall acquire and rehabilitate existing vacant single family
homes or acquire vacant property and emplace new single family modular homes in communities
belonging to the Oakland County Urban County Program, as approved by the County. The Agency
shall subsequently sell the houses to qualified low income home buyers who must occupy the
property as their principle residence.
A low income purchaser must have a gross annual income that does not exceed 80 percent of
median income for Oakland County, adjusted for family size, as established by HUD and listed in
Attachment B.
In consideration of mutual promises and covenants contained herein, the Agency and County agree
as follows:
SECTION III. THE AGENCY'S RESPONSIBILITIES
The Agency shall comply with all applicable laws, ordinances, codes and regulations of the federal,
state and local governments. The Agency shall expend HOME Homebuyer Assistance Program
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funds in accordance with all applicable federal requirements to acquire and rehabilitate existing
vacant single family homes or acquire vacant property and emplace new single family modular
homes. The Agency shall provide a minimum of two and a maximum of three single family
dwellings for sale to low income home buyers.
The Agency shall undertake HOME Homebuyer Assistance Program activities within the
boundaries of communities belonging to the Oakland County Urban County Program, as approved
by the County.
The Agency shall provide evidence that the local unit of government approves each proposed
project through letters of support.
The Agency shall complete appropriate environmental reviews and/or assessments for each
property prior to rehabilitation or new construction in accordance with federal environmental review
procedures. HOME project funds may be used for this activity.
The Agency shall hold valid legal title to each property and provide property survey documentation
prior to committing HOME funds for rehabilitation or emplacement activities through the HOME
Cash Management and Information System. Appropriate recorded deeds and property survey
documentation must be submitted to the County.
The Agency shall comply with all Federal bidding and procurement requirements in implementing
HOME Homebuyer Assistance Program activities.
The Agency shall limit projects undertaken with HOME funds to those that will have an after
rehabilitation or new construction appraised value equal to or below the Section 203(b) single
family mortgage limits of $116,850 established for Oakland County by HUD.
The Agency shall commit or obligate all HOME funds to specific Homebuyer Assistance Program
projects for project set-up in the HOME Cash Management Information System on or before
December 31, 1996,
The Agency shall be reimbursed for eligible HOME Homebuyer Assistance Program expenses by
Oakland County through the Federal Cash Management and Information System through the U.S.
Department of Treasury.
The Agency shall submit to Oakland County a comprehensive project budget and specific
project construction documents for each project as listed in Attachment C. The Agency
shall request payments based on a project progress payment schedule for each project as
listed in Attachment C.
The Agency shall invest no more HOME funds in each project than the HOME per-unit subsidy
for Oakland County as established by HUD and listed in Attachment D.
The Agency shall complete Homebuyer Assistance Program projects and expend all (CHDO) funds
on or before May 31, 1998.
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The Agency shall obtain a formal appraisal through a private, state licensed residential appraiser
for all Homebuyer Assistance Program projects prior to sale of the properties to low income
homebuyers in order to assess the after rehabilitation or new construction value of the property.
Appraisal documentation must be submitted to the County for review and approval prior to property
sale.
The Agency shall ensure in written form that at the time of initial occupancy, the property meets
all applicable HUD Section 8 Housing Quality Standards (HQS), local building code standards,
local rehabilitation or new construction standards and cost-effective energy conservation and
effectiveness standards.
The Agency shall Affirmatively Market the sale of each property.
The Agency shall sell each property to a low income homebuyer (income verification is required)
for a price that is equal to or less than the appraised value at the time of purchase as agreed
upon by the County and the Agency, or all Oakland County HOME funds invested in the property
become immediately due and payable by the Agency to the Oakland County HOME Trust Fund.
The Agency shall convey legal title for each HOME assisted property to a qualified homebuyer
within ninety (90) days from the date of each project completion. The date of completion is the
date Oakland County issues final project payment. If the title is not conveyed to a qualified home
buyer within the ninety day period stipulated, all Oakland County HOME funds invested in the
property become immediately due and payable by the Agency to the Oakland County HOME Trust
Fund as required by HUD. Lease/purchase agreements will not be allowed. Homebuyers shall
not occupy the property prior to conveyance of clear title to the homebuyer.
The Agency shall return proceeds from the sale of the homes as defined by HUD and Oakland
County to the County HOME Investment Trust Fund as program income.
SECTION IV. THE COUNTY'S RESPONSIBILITIES
The County shall, in consideration for services rendered by the Agency, pay the Agency a total sum
not to exceed Two hundred thirty-one thousand four hundred fifty-seven dollars ($231,457) to
provide two or three houses for sale to qualified homebuyers in communities belonging to the
Oakland County Urban County Program, as approved by the County. CHDO funds expended for
housing rehabilitation and new construction activities shall be matched at a level of 25% as
federally mandated. The total contract amount of $231,457 includes a $171,450 set aside for
rehabilitation or new construction activities, a $42,862 (25%) match for rehabilitation or new
construction activities and $17,145 for direct administration of the Homebuyer Assistance
Program.
Administrative expenses shall be limited to salaries, fringes and mileage expenses directly incurred
to administer the program. Any other project related administrative costs must be authorized by
the County prior to expenditure. See Administrative Expense schedule, Attachment C.
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The County shall pay the Agency for eligible costs upon receipt of specified project and financial
documents and in accordance with the Project Progress Payment Schedule listed in Attachment
D.
The County shall provide a downpayment assistance loan to the initial low income homebuyer in
the amount of One Thousand Dollars ($1,000.00). This assistance will satisfy the federally
mandated resale and recapture requirements of the HOME program.
The County shall monitor the performance of the Agency in carrying out its responsibilities through
project progress payment inspections, periodic on-site monitoring reviews and financial
documentation review.
SECTION V. RECORDS AND REPORTS
The Agency shall provide progress and spending performance reports with each project draw or
administrative draw request and comply with any additional reporting requirements to be specified
by the County and federal regulations.
The Agency shall ensure an overall program and financial management system that maintains
effective control over and accountability for all HOME projects and funds received. The Agency
shall maintain its financial records such that Oakland County HOME funds are maintained in a
separate account from all other asset accounts.
The Agency shall maintain all financial records, project records, supporting documents, statistical
records and all other pertinent records established in 24 CFR 92.254, 24 CFR 92.58, 24 CFR
92.508 and 24 CFR 85.42. Records must be retained for three years after closeout of the HOME
program.
The Agency shall comply with the requirements of OMB Circular No, A-122 (Cost Principles for
Nonprofit Organizations) and OMB Circular No. A-110 (Uniform Administrative Requirements for
Agreements with Nonprofit Organizations).
The Agency shall permit audits to be conducted in accordance with 24CFR Part 44 and OMB
Circular A-133 (Audits of Institutions of Higher Education and Other Nonprofit Institutions) and
permit Oakland County, HUD and Comptroller General of the United States access to any pertinent
books, documents or other records in order to conduct audits, examinations and monitoring.
The Agency shall provide citizens, public agencies and other interested parties with reasonable
access to records, consistent with applicable state and local laws regarding privacy and obligations
of confidentiality.
SECTION VI. GENERAL TERMS AND CONDITIONS
1. Amendments - The Agency shall obtain prior written approval of the Oakland County HOME
Program coordinator for any amendments including changes of substance in the scope of activities
and changes in the authorized budget for the expenditure of Homebuyer Assistance Program
funds.
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2. Cost Overruns - The Agency shall be responsible for all cost overruns that exceed the
contract amount unless prior written approval and a contract amendment is obtained from the
County.
3. Suspension of Contract - When the Agency has failed to comply with the stipulations,
standards, or conditions, or in the event that HOME funding is no longer available to Oakland
County from the Department of Housing and Urban Development, the County, on reasonable notice
to the Agency may suspend the contract and prevent further electronic funds transfer or prohibit
the Agency from incurring additional obligations of HOME funds, pending corrective action by the
Agency, resumption of HOME funding from HUD, or a decision to terminate in accordance with
these Terms and Conditions. The County shall allow all necessary and proper costs which the
Agency could not reasonably avoid during the period of suspension.
4. Termination for Cause -The County may terminate this Contract, in whole or in part, at any
time before the date of completion, whenever it is determined that the Agency has failed to comply
with the conditions of this Agreement. Oakland County shall promptly notify the Agency in writing
of the determination and the reasons for the termination, together with the effective date.
Payments made to recipients or recapture of funds by the County shall be in accordance with the
legal rights and liabilities of the parties.
S. Termination for Convenience - The County or the Agency may terminate this Agreement in
whole, or in part, when both parties agree that the continuation of the project would not produce
beneficial results commensurate with the further expenditure of funds. The two parties shall agree
upon the termination conditions, including the effective date and, in the case of partial terminations,
the portion to be terminated. The Agency shall not incur new obligations for the terminated portion
after the effective date, and shall cancel as many outstanding obligations as possible. The County
shall allow full credit for the Agency's share of the non-cancelable obligations, properly incurred by
the Agency prior to termination.
6. Religious Activity Prohibited - There shall be no religious worship, instruction, or
proselytization as part of, or in connection with the performance of this Contract.
7. Merger or Integration - This Contract constitutes the entire Contract between the County and
the Agency with respect to the subject matter hereof and there are no other or further written or oral
understandings or agreements with respect hereto.
8. Assignment or Delegation - No assignment or delegation of this Contract may be made, in
whole or in part, without the written consent of the County being first obtained except as
subcontracting occurs in performing eligible housing rehabilitation or new construction activities.
9. Indemnification - The Agency shall indemnify, defend, and hold harmless the County, its
employees, officials, volunteers, boards, commissions and agents against suits, claims, etc. arising
out of the performance of the subject contract.
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In the event the Agency becomes involved in or is threatened with litigation relative to this contract
and project, the Agency shall immediately notify the County and the County may enter into such
litigation to protect the interest of the County as they may appear.
10. Insurance - The Agency, or Oakland Livingston Human Service Agency (OLHSA) as its agent
under a management agreement, shall maintain during the term of this contract and any extensions
thereof, the following insurance:
a, Worker's Compensation Insurance: The Agency shall procure and maintain, during the life
of this contract. Worker's Compensation Insurance, including Employer's Liability
Coverage, in accordance with all applicable statutes of the State of Michigan.
b. Commercial General Liability Insurance: The Agency shall procure, and maintain during
the life of this contract, Commercial General Liability Insurance, on an "Occurrence Basis"
with limits of liability not less than $1,000,000 per occurrence and/or aggregate combined
single limit Personal Injury, Bodily Injury, and Property Damage. Coverage shall include
the following extensions: (a) Contractual Liability; (b) Products and Completed Operations;
(c) Independent Contractors Coverage; (d) Broad Form General Liability Extensions, or
equivalent; (e) Deletion of all Explosion, Collapse and Underground (XCU) Exclusions, if
applicable.
c. Motor Vehicle Liability: The Agency shall procure and maintain during the life of this
contract, Motor Vehicle Liability Insurance, including Michigan No-Fault Coverages, with
limits of liability not less than $1,000,000 per occurrence combined single limit Bodily Injury
and Property Damage. Coverage shall include all owned vehicles, all non-owned vehicles
and all hired vehicles.
d. Cancellation Insurance: Worker's Compensation Insurance, Commercial General
Liability Insurance and Motor Vehicle Liability Insurance, as described above, shall include
an endorsement stating the following: "It is understood and agreed that thirty (30) days
advance written notice of cancellation, non-renewal, and/or material change in coverage
will be sent to the County of Oakland, Department of Community Development, Executive
Office Building, 1200 N. Telegraph Road, Pontiac, Michigan, 48341-0414.
e. Title Insurance: The Agency shall procure and maintain, during its ownership and
control of the properties, title insurance on all properties in an amount to permit complete
replacement of the improvements and the land.
General Fire and Casualty Insurance: The Agency shall procure and maintain, during
its ownership and control of the properties, general fire and casualty insurance in an
amount to permit complete replacement of the improvements and the land.
Proof of Insurance Coverage: The Agency shall provide the County, at the time
contracts are executed, certificates and policies as listed below:
Two (2) copies of Certificate of Insurance for Worker's Compensation Insurance;
Two (2) copies of Certificate of Insurance for Commercial Liability Insurance;
g.
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Two (2) copies of Certificate of Insurance for Vehicle Liability Insurance;
Two (2) copies of Certificate of Insurance for Title Insurance;
Two (2) copies of Certificate of Insurance for General Fire and Casualty Insurance.
If so requested certified copies of all policies will be furnished.
Insurance will be maintained with a well-rated insurance company licensed in the State of
Michigan and acceptable to the Oakland County Risk Management Department. The Agency
is responsible for all premiums, deductibles, copayments, uncovered losses and losses in
excess of valid coverages required to be maintained by the Agency. The subject policy will
be endorsed to add the following: Oakland County, Oakland County employees, and appointed
and elected officials and their agents.
Certificates evidencing such insurance coverage and subsequent renewals must be presented
to and approved by the county prior to any services under this contract. Evidence of renewal
of expiring coverage must also be submitted to and approved by Oakland County prior to such
expiration date.
Certificates must provide for thirty (30) day written notice to the certificate holder of
cancellation of contractor's coverage.
11. Independent Contractor Provision - The relationship of the Agency to the County shall be
that of an independent contractor. No partnership, association, or joint enterprise shall arise
between the parties hereto as a result of any provision of this contract nor shall any provision
herein be construed as making an employee of the Agency an agent or employee of the County.
12. Disputes - The Agency shall notify the County in writing of its intent to pursue a claim against
the County for breach of any terms of this Contract. No suit may be commenced by the Agency
for breach of this Contract prior to the expiration of ninety (90) days from the date of such
notification.
Within this ninety (90) day period. the Agency, at the request of the County, must meet with an
appointed representative of the County for the purpose of attempting to resolve the dispute.
13. Conflict of Interest - The Agency shall comply with conflict of interest provision in 24CFR
85.36 and OMB Circular A-110.
14. Reversion of Assets - Upon expiration or termination of the contract, the Agency shall
transfer to the County any HOME funds on hand at the time of expiration and any accounts
receivable attributable to the use of HOME funds.
SECTION VII. CERTIFICATIONS AND ASSURANCES
The Agency hereby assures and certifies compliance with the statutes, rules, regulations, and
guidelines associated with the acceptance and use of funds under the HOME Homebuyer
Assistance Program as implemented by Oakland County. Such assurances and certifications
include, but are not limited to the following:
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1. The execution of the contract is authorized under State and local statutes, and the Agency
possesses the legal authority to implement the HOME Homebuyer Assistance Program described
herein and in accordance with regulations contained in 24 CFR Part 92 et. seq.
2. The Agency shall implement its HOME Homebuyer Assistance Program in conformance with
the requirements of 24 CFR 92.254 pertaining to the qualification of units assisted under the HOME
Homebuyer Assistance Program as affordable housing.
3. The Agency shall implement its HOME Homebuyer Assistance Program in conformance with
the requirements of 24 CFR 92.504(c) (3) to assure that any program income as defined by HUD
and Oakland County shall be returned to Oakland County HOME Investment Trust Fund.
4. The Agency shall implement its HOME Homebuyer Assistance Program in conformance with
the requirements of 24 CFR 92.350 pertaining to equal opportunity and fair housing and 24 CFR
92.202 regarding site and neighborhood standards.
5. The Agency shall implement its HOME Homebuyer Assistance Program in conformance with
the requirements of 24 CFR 92.353 pertaining to displacement, relocation, and acquisition.
6. The Agency shall implement its HOME Homebuyer Assistance Program in conformance with
the requirements of 24 CFR 92.355 pertaining to the testing for and abatement of lead-based paint
in HUD-associated housing.
7. The Agency shall implement its HOME Homebuyer Assistance Program in conformance with
the requirements of 24 CFR 92.356 pertaining to conflict of interest,
8. The Agency shall implement its HOME Homebuyer Assistance Program in conformance with
the requirements of 24 CFR 92.358 pertaining to flood insurance.
9. The Agency shall implement its HOME Homebuyer Assistance Program in conformance with
the requirements of 24 CFR 92.504(10) to assure that no funds available under this agreement are
requested until funds are needed for payment of eligible costs. Further, the amount requested
must be limited to the amount needed.
10. The Agency shall comply with all other requirements of the HOME Homebuyer Assistance
Program which may be applicable to an Agency administering the HOME Homebuyer Assistance
program as determined by the County pursuant to the requirements of 24 CFR 92 et. seq.
11. The Agency shall comply with the Debarment and Suspension requirements of CFR 14,
92.357; that neither it nor its principals is presently debarred, suspended, proposed for debarment,
declared ineligible or voluntarily excluded from participation from implementing eligible HOME
activities.
12. The Agency shall implement its HOME Homebuyer Assistance Program in conformance with
federal anti-lobbying requirements.
13. The Agency shall not use any HOME funds, materials, property, or services contributed by the
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County to the Agency under this Contract for any partisan political activity, or to further the election
or defeat of any candidate for public office.
14. The Agency shall administer, in good faith, a policy designed to ensure that the Agency is free
from the illegal use, possession, or distribution of drugs or alcohol by its beneficiaries.
The Agency, in compliance with the Drug-Free Workplace Act, will prominently post a drug-
free workplace policy statement identical to, or substantially equivalent to, the model statement
included as Attachment E.
IN WITNESS WHEREOF, the parties hereto have executed this Contract on the respective dates
hereunder indicated.
WITNESS: COUNTY OF OAKLAND,
a Michigan Constitutional Corporation:
BY:
KARRY L. RIETH
TITLE: MANAGER, COMMUNITY DEVELOPMENT BY:
L. BROOKS PATTERSON
DATE: TITLE: COUNTY EXECUTIVE
DATE:
VENTURE, INC., a Community Housing
WITNESS: Development Organization:
BY: BY:
DIANA STAHL ROBERT CONAWAY
TITLE: PRESIDENT TITLE: CHAIRMAN
DATE: DATE:
KJF/5/7/96/HOME.430
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Resolution #96116 May 23, 1996
Moved by Palmer supported by McPherson the resolution be adopted.
Commissioner Crake questioned whether there should be a place for the
Chairperson of the Board of Commissioners to sign the contract. Corporation
Counsel Jerry Poisson agreed that the Chairperson should sign the contract. The
Chairperson said it would be taken care of.
Vote on resolution:
AYES: Devine, Dingeldey, Douglas, Garfield, Holbert, Huntoon, Jacobs,
Jensen, Johnson, Kaczmar, Kingzett, McCulloch, McPherson, Moffitt, Palmer,
Pernick, Powers, Quarles, Schmid, Wolf, Amos, Crake. (22)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lynn D. Allen, 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 May 23, 1996 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 23rd day of May 1996.
4214W:
-E71,175. Allen, County Clerk