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HomeMy WebLinkAboutResolutions - 1999.05.27 - 25815AND BUILDING1COMMITTEE May 27, 1999 MISCELLANEOUS RESOLUTION # 9 9 1 2 9 BY: PLANNING AND BUILDING COMMITTEE, CHARLES E. PALMER, CHAIRPERSON RE: COMMUNITY AND ECONOMIC DEVELOPMENT DEPARTMENT - COMMUNITY DEVELOPMENT DIVISION - PY 1997/1998 HOME INVESTMENT PARTNERSHIPS PROGRAM COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO) PROJECT DEVELOPMENT CONTRACTS WITH LIGHTHOUSE COMMUNITY DEVELOPMENT AND HOUSING, PLUS, 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 1997 HOME funding totaling $1,176,000 on May 3, 1997 and 1998 HOME funding totaling $1,235,000 on May 3, 1998 to preserve and develop affordable housing for low and moderate income persons; and WHEREAS the 1997 and 1998 HOME programs allocate federally mandated set asides totaling 15% of each grant award ($176,400 and $185,250 respectively) to Community Housing Development Organizations to develop affordable housing and additional amounts equal to 15% of each CI-IDO allocation ($26,460 and $27,788 respectively) for CHDO operating expenses; and WHEREAS the Oakland County Board of Commissioners accepted the 1997 federal HOME grant per Miscellaneous Resolution #97109 on May 22, 1997 and the 1998 federal HOME grant per Miscellaneous Resolution #98125 on May 21, 1998; and WHEREAS the County, under federal procurement regulations must provide fair and open competition amongst several new Community Housing Development Organizations (CI-11)0s) which are eligible to compete for CHDO project development funding available through the HOME program; and WHEREAS the Oakland County Board of Commissioners authorized three newly certified CHDOs, Housing, Plus, Inc., Lighthouse Community Development and Your Home Co., Inc. to develop affordable housing project proposals using CHDO operating expense funds per Miscellaneous Resolution #99037 ; and WHEREAS Oakland County Community Development received and evaluated the viability of affordable housing development project proposals from each of the three agencies; and WHEREAS Oakland County Community Development recommends funding approval of proposals from Lighthouse Community Development to construct and sell two units of single family housing in the Village of Holly to low/moderate income families and Housing, Plus, Inc. to acquire, rehabilitate and sell five scattered site single family housing units to low income persons with disabilities; and WHEREAS the contracts have been reviewed and approved as to form by the Office of Corporation Counsel, Fiscal Services, Risk Management and Personnel; and WHEREAS the Oakland County Community Development Citizens Advisory Council recommended approval of these contracts by unanimous vote on May 12, 1999. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners authorizes the attached contracts with Lighthouse Community Development ($234,825) to construct two units of single family housing in the Village of Holly to be sold to low/moderate income families and Housing, Plus, Inc. ($266,298) for the acquisition, rehabilitation, and resale of five scattered site single family housing units to low income persons with disabilities. BE IT FURTHER RESOLVED that the Oakland County Executive and the Chairperson of the Oakland County Board of Commissioners are authorized to execute the agreements. Chairperson, on behalf of the Planning and Building Committee, I move adoption of the foregoing resolution. Planning & Building Committee vote: Motion carried on unanimous roll call vote with Schmid absent. The Agency shall undertake HOME Home Buyer Assistance Program activities within the boundaries of Oakland County's participating communities. 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 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 property acquisition and new construction activities through the HOME Integrated Disbursement and Information System (IDIS). 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 Home Buyer Assistance Program activities. The Agency shall limit projects undertaken with HOME funds to those that will have an appraised value equal to or below the Section 203(b) single family mortgage limits of $156,258 established for Oakland County by HUD. The Agency shall commit or obligate all HOME funds to specific Home Buyer Assistance Program projects for project set-up in the HOME IDIS System on or before December 31, 1999. The Agency shall be reimbursed for eligible HOME Home Buyer Assistance Program expenses by Oakland County through the Federal IDIS 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. The Agency shall request payments based on a project progress payment schedule for each project (see 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 (see Attachment B). The Agency shall complete Home Buyer Assistance Program projects and expend all Community Housing Development Organization (CHDO) funds on or before June 1, 2001. The Agency shall obtain a formal appraisal through a private, state licensed residential appraiser for all Home Buyer Assistance Program projects prior to sale of the properties to low income home buyers in order to assess the new construction property value. 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, 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 home buyer (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. 2 The Agency shall convey legal title for each HOME assisted property to a qualified home buyer 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. Home buyers shall not occupy the property prior to conveyance of clear title to the home buyer. 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 $234,825. CHDO funds expended for new construction activities shall be matched at a level of 25% as federally mandated. The total contract amount of $234,825 includes a $187,860 federal grant set aside for new construction activities and $46,965 (25%) match for new construction activities. The Agency is entitled to a ten percent developer's fee to provide two houses for sale to qualified home buyers in participating communities. The developer's fee will be based on the sales price of each home and credited to the Agency at the time of closing as a cost deducted from sales proceeds. The balance of sales proceeds shall be remitted to Oakland County as program income. 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 (see Attachment C). The County shall provide home buyer assistance to the initial low income home buyer to be approved by the County. This assistance shall be a deferred payment loan with 0% interest in an amount that makes the home affordable per HOME regulations, is payable upon conversion of the property use and/or ownership and shall be secured by an Oakland County mortgage and note. 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 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 seven years after closeout of the HOME program. The Agency shall comply with the requirements 24 CFR Part 84 (Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and other Nonprofit Organizations. 3 The Agency shall permit audits to be conducted in accordance with 24CFR Part 84 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. GENERALIERMSANII_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 Home Buyer Assistance Program funds. 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 Convenience - The County or the Agency may terminate this Agreement in whole, or in part, for any reason including convenience upon thirty (30) days written notice by the terminating party. Termination may also be by mutual consent when both parties agree that the continuation of the project would not produce beneficial results commensurate with the further expenditure of funds. In the case of mutual termination, the two (2) parties shall agree upon the termination conditions, including the effective date of termination. Mutual termination may be for only a portion of this Agreement. 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. 5. Religious Activity Prohibited - There shall be no religious worship, instruction, or proselytization as part of, or in connection with the performance of this Contract. 6. 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. 7. 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. 8. Indemnification - The Agency shall indemnify, defend, and hold harmless the County, its employees, officials, volunteers, boards, commissions and agents against suits, claims, demands, etc. of whatsoever nature (including reasonable attorney's fees) arising out of the performance of this contract. 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 its interests. 4 9. Insurance - The Agency 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. f. 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 home and improvements on an all "risk of loss basis". g. Pro.o.flAinsurance_CaYcragt: 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. 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. 10. 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 5 employee of the Agency an agent or employee of the County. 11. 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. 12. Code of Conduct - The Agency shall comply with Code of Conduct provisions in 24CFR 92.356. No officer , employee, agent or consultant of the community housing development organization (CHDO) may occupy a HOME-assisted affordable housing unit in any CHDO project that results from this contract. Further, no officer or employee (or persons with whom they have family or business ties) may obtain a financial interest or benefit from any contract, subcontract or agreement with respect to a HOME-assisted activity, or the proceeds thereunder, during their tenure or for one year thereafter. All potential and actual conflicts must be disclosed to the County in advance in writing. The County may grant an exception to the provision of this paragraph, subject to the standards set forth in 24 CFR 92.356, as they apply. 13. 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 Home Buyer Assistance Program as implemented by Oakland County. Such assurances and certifications include, but are not limited to the following: 1. The execution of the contract is authorized under State and local statutes, and the Agency possesses the legal authority to implement the HOME Home Buyer Assistance Program described herein and in accordance with regulations contained in 24 CFR Part 92 et. seq. 2. The Agency shall implement its HOME Home Buyer Assistance Program in conformance with the requirements of 24 CFR 92.254 pertaining to the qualification of units assisted under the HOME Home buyer Assistance Program as affordable housing. 3. The Agency shall implement its Home Buyer 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 Home Buyer 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 Home Buyer 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 Home Buyer 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. 6 7. The Agency shall implement its HOME Home Buyer Assistance Program in conformance with the requirements of 24 CFR 92.356 pertaining to conflict of interest. 8. The Agency shall implement its HOME Home Buyer Assistance Program in conformance with the requirements of 24 CFR 92.358 pertaining to flood insurance. 9. The Agency shall implement its HOME Home Buyer 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 Home Buyer Assistance Program which may be applicable to an Agency administering the HOME Home Buyer 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 Home Buyer 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 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, 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 D. 7 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: BY: KARRY L. RIETH L. BROOKS PAITERSON TITLE: MANAGER, COMMUNITY DEVELOPMENT TITLE: COUNTY EXECUTIVE DATE': DATE: WITNESS: BY: JOHN P MCCULLOCH TITLE: TITLE: CHAIRPERSON OAKLAND COUNTY BOARD OF COMMISSIONER DATE: BY: DATE: WITNESS: LIGHTHOUSE COMMUNITY DEVELOPMENT, a Community Housing Development Organization BY: TITLE: MICHAEL GODDARD TITLE: EXECUTIVE DIRECTOR DATE: DATE: BY: BY: 8 ATTACHMENT A OAKLAND COUNTY URBAN COUNTY PARTICIPANTS - 1999 CITIES TOWNSHIPS VILLAGES Auburn Hills Addison Beverly Hills Berkley Brandon FranIclin Birmingham Commerce Holly Clarkson' Groveland Lake Orion Clawson Highland Leonard Farmington Holly Milford Ferndale Independence Ortonville Hazel Park Lyon Oxford Huntington Woods Milford Wolverine Lake Keego Harbor Oakland Lathrup Village Orion Madison Heights Oxford Northville Rose Novi Royal Oak Oak Park Springfield Orchard Lake Village West Bloomfield Pleasant Ridge White Lake Rochester Rochester hills South Lyon Sylvan Lake Troy Walled Lake Wixom 9 ATTACHMENT. C • PROJECT CONSTRUCTION DOCUMENTS AND PROGRESS PAYMENT SCHEDULE I. CONSTRUCTION DOCUMENTS The following documents or information shall be provided by the Agency for each project (address specific) assisted with HOME funds. Pre-construction Documents Environmental Review documents Bid documents, including advertisement Detailed specifications for new house Cost Estimate by Agency personnel for work being completed by builder Coritract between Agency and builder Proposed project costs in addition to construction contract costs Completion Documents Invoice from builder Final inspection report from Agency and County personnel Contract amendments/change orders between Agency and builder with written authorization from Oakland County Community Development Certificate of Occupancy from local building department Full Unconditional Waiver from builder Contractor/Subcontractor Activity Report Home Buyer Documents Home buyer application package (prior to purchase agreement) Purchase agreement Property Sale Documents (prior to loan closing) Appraisal Loan closing documents for property sale H. PROJECT PROGRESS PAYMENT SCITEDULF, Each project progress payment is address specific and will be based on completion of the following phases: Phase 1: Site acquisition - the request must include purchase agreements, the date of the closing and a copy of the clear title document. Phase 2: Pre-Development - permits and fees, engineering, sitework such as foundations, concrete, utilities, site plans- the request must include an invoice from the builder or agency, an inspection report from your agency personnel documenting work completed and an accounting invoice from your Agency for the work to be paid. Phase 3: Post Development - landscaping, fencing, appliances, construction loan fees and interest -the request must include an invoice from the builder or agency, an inspection report from your agency personnel documenting work completed and an accounting invoice from your Agency for the work to be paid 10% of the contract amount will be held until all construction documentation has been received and approved by the County. Any variation to the payment schedule must be mutually agreed upon by the Agency and Oakland County Community Development. NOTE: Any changes to the construction contract must be reviewed and approved by the County in writing. All project related costs, in addition to contracted construction costs, must be reviewed and authorized by the County prior to construction. 11 e- ATTACHMENT D DRILG_EREELWORKPLACE.TOLICY_STATEMENT The Federal Drug-Free Workplace Act of 1988 imposes certain requirements on and its employees as recipients of federal grant funds. supports the purpose and goals of the Act and by this policy, announces its intention to comply with this Act and make continuing "good faith" efforts to provide a drug-free workplace. Therefore, it is the policy of that any unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance in the workplace is strictly prohibited. All employees of must abide by the terms of this policy and must notify their Manager of any criminal drug statute conviction no later than five (5) days after such conviction. Employees violating this policy are subject to appropriate personnel/disciplinary action, up to and including termination, and/or other remedial measures as the individual circumstances warrant. is committed to maintaining a drug-free workplace. All employees are expected to cooperate and give this policy their full support. 12 HOME INVESTMENT PARTNERSHIPS PROGRAM COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO) PROJECT DEVELOPMENT CONTRACT BETWEEN COUNTY OF OAKLAND AND HOUSING, PLUS, INC. SECTION I. CONTRACT a This Contract is made on the first day of June 1999 between the County of Oakland, Office of Community Development, hereinafter designated as the "County", having its principal office at 1200 North Telegraph Road, City of Pontiac,. State of Michigan, 48341-0414, and Housing, Plus, Inc. hereinafter designated as the "Agency" having its principal office at 28 N. Saginaw Suite 301, City of Pontiac, State of Michigan, 48342. The effective dates of this Contract shall be from June 1, 1999 to June 1, 2001 and any additional period/s the "County" and the "Agency" shall agree. SECTION IL rimPosE 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 Housing, Plus, Inc. to increase the supply of decent, safe, sanitary and affordable housing for low income home buyers in Oakland County's fifty participating communities (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 five vacant scattered site existing single family homes in Oakland County's fifty participating communities. The Agency shall subsequently sell the houses to qualified low income home buyers with disabilities who must occupy the property as their principal 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 (see Attachment B). In consideration of mutual promises and covenants contained herein, the Agency and County agree as follows: SECTION HI. 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 Home Buyer Assistance Program funds in accordance with all applicable federal requirements to acquire and rehabilitate existing vacant single family homes. The Agency shall provide five single family dwellings for sale to low income home buyers with disabilities as described in the CHDO Project Development Application. 1 The Agency shall undertake HOME Home Buyer Assistance Program activities within the boundaries of Oakland County's participating communities. 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 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 activities through the HOME Integrated Disbursement and Information. System (IDIS). 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 Home Buyer Assistance Program activities. The Agency shall limit projects undertaken with HOME funds to those that will have an after rehabilitation appraised value equal to or below the Section 203(b) single family mortgage limits of $156,258 established for Oakland County by HUD. The Agency shall commit or obligate all HOME funds to specific Home Buyer Assistance Program projects for project set-up in the HOME IDIS System on or before March 31, 2000. The Agency shall be reimbursed for eligible HOME Home Buyer Assistance Program expenses by Oakland County through the Federal IDIS 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. The Agency shall request payments based on a project progress payment schedule for each project (see 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 (see Attachment B). The Agency shall complete Home Buyer Assistance Program projects and expend all Community Housing Development Organizations (CHDO) funds on or before June 1, 2001. The Agency shall obtain a formal appraisal through a private, state licensed residential appraiser for all Home Buyer Assistance Program projects prior to sale of the properties to low income home buyers in order to assess the after rehabilitation 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 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 home buyer (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. 2 The Agency shall convey legal title for each HOME assisted property to a qualified home buyer 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. Home buyers shall not occupy the property prior to conveyance of clear title to the home buyer. 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. The program income generated from sales proceeds on the first three homes will be retained by the Agency through a financial staging process in order to acquire, rehabilitate, and sell two additional homes to qualified home buyers with disabilities. The Agency shall return proceeds from the sale of the final two homes as defined by HUD and Oakland County to the County HOME Investment Trust Fund as program income. SECTION IV. THE COUNTW'S RESPONSIBILITIES The County shall, in consideration for services rendered by the Agency, pay the Agency a total sum not to exceed $266,298. CHDO funds expended for acquisition and housing rehabilitation activities shall be matched at a level of 25% as federally mandated. The total contract amount of $266,298 includes a $213,038 federal grant set aside for acquisition and rehabilitation activities and $53,260 (25%) match for acquisition and rehabilitation activities. The Agency is entitled to a ten percent developer's fee to provide five houses for sale to qualified home buyers in participating communities. The developer's fee will be based on the sales price of each home and credited to the Agency at the time of closing as a cost deducted from the sales proceeds. The balance of sales proceeds from the first three homes shall be retained by the Agency to complete the staged financing of the final two homes while the balance of sales proceeds from the final two homes shall be remitted to Oakland County as program income. 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 (see Attachment C). The County shall provide home buyer assistance to the initial low income home buyer of each property to be approved by the County. This assistance shall be a deferred payment loan with 0% interest in an amount that makes the home affordable per HOME regulations, is payable upon conversion of the property use and/or ownership and shall be secured by an Oakland County mortgage and note. 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 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. 3 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 seven years after closeout of the HOME program. The Agency shall comply with the requirements 24 CFR Part 84 (Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and other Nonprofit Organizations. The Agency shall permit audits to be conducted in accordance with 24CFR Part 84 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 Home Buyer Assistance Program funds. 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 Convenience - The County or the Agency may terminate this Agreement in whole, or in part, for any reason including convenience upon thirty (30) days written notice by the terminating party. Termination may also be by mutual consent when both parties agree that the continuation of the project would not produce beneficial results commensurate with the further expenditure of funds. In the case of mutual termination, the two (2) parties shall agree upon the termination conditions, including the effective date of termination. Mutual termination may be for only a portion of this Agreement. 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. 5. Religious Activity Prohibited - There shall be no religious worship, instruction, or proselytization as part of, or in connection with the performance of this Contract. 6. 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. 7. 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 4 performing eligible housing rehabilitation or new construction activities. 8. Indemnification - The Agency shall indemnify, defend, and hold harmless the County, its employees, officials, volunteers, boards, commissions and agents against suits, claims, demands, etc. of whatsoever nature (including reasonable attorney's fees) arising out of the performance of this contract. 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 its interests. 9. Insurance - The Agency, through a management contract with New Passages, ACL, shall maintain during the term of this contract and any extensions thereof, the following insurance: a.4 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 S1,000,000 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. f. 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 home and improvements on an all "risk of loss basis". g. Eraufslfinsuranac_Cameragc: 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. 5 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. 10. 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. 11. 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. 12. Code of Conduct - The Agency shall comply with Code of Conduct provisions in 24CFR 92.356. No officer , employee, agent or consultant of the community housing development organization (CHDO) may occupy a HOME-assisted affordable housing unit in any CHDO project that results from this contract. Further, no officer or employee (or persons with whom they have family or business ties) may obtain a financial interest or benefit from any contract, subcontract or agreement with respect to a HOME-assisted activity, or the proceeds thereunder, during their tenure or for one year thereafter. All potential and actual conflicts must be disclosed to the County in advance in writing. The County may grant an exception to the provision of this paragraph, subject to the standards set forth in 24 CFR 92.356, as they apply. 13. 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 Home Buyer Assistance Program as implemented by Oakland County. Such assurances and certifications include, but are not limited to the following: 1. The execution of the contract is authorized under State and local statutes, and the Agency possesses the legal authority to implement the HOME Home Buyer Assistance Program described herein and in accordance with regulations contained in 24 CFR Part 92 et. seq. • 2. The Agency shall implement its HOME Home Buyer Assistance Program in conformance with the requirements of 24 CFR 92.254 pertaining to the qualification of units assisted under the HOME Home Buyer Assistance Program as affordable housing. 3. The Agency shall implement its HOME Home Buyer Assistance Program in conformance with the requirements of 24 CFR 92.504© (3) to assure that any program income as defined by HUD and Oakland County shall be returned to Oakland County HOME Investment Trust Fund. 6 4. The Agency shall implement its HOME Home Buyer 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 Home Buyer 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 Home Buyer 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 Home Buyer Assistance Program in conformance with the requirements of 24 CFR 92.356 pertaining to conflict of interest. 8. The Agency shall implement its HOME Home Buyer Assistance Program in conformance with the requirements of 24 CFR 92.358 pertaining to flood insurance. 9. The Agency shall implement its HOME Home Buyer 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 Home Buyer Assistance Program which may be applicable to an Agency administering the HOME Home Buyer 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 Home Buyer 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 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, 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 D. 7 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: BY: 'CARRY L. RIETH L. BROOKS PATTERSON TITLE: MANAGER, COMMUNITY DEVELOPMENT TITLE: COUNTY EXECUTIVE DATE: ' DATE: WITNESS: BY: BY: JOHN P MCCULLOCH TITLE: TITLE: CHAIRPERSON OAKLAND COUNTY BOARD OF COMMISSIONER DATE: DATE: WITNESS: BY: TITLE: DATE: HOUSING, PLUS, INC., a Community Housing Development Organization BY: MARSHA POPKEY TITLE: DIRECTOR DATE: 8 C * ATTACHMENT A OAKLAND COUNTY URBAN COUNTY PARTICIPANTS - 1999 CITIES TOWNSHIPS VILLAGES Auburn Hills Addison Beverly Hills Berkley Brandon Franklin Birmingham Commerce Holly Clarkston Groveland Lake Orion Clawson Highland Leonard Farmington Holly Milford Ferndale Independence Ortonville Hazel Park Lyon Oxford Huntington Woods Milford Wolverine Lake Keego Harbor Oakland Lathrup Village Orion Madison Heights Oxford Northville Rose Novi Royal Oak Oak Park Springfield Orchard Lake Village West Bloomfield Pleasant Ridge White Lake Rochester Rochester hills South Lyon Sylvan Lake Troy Walled Lake Wixom 9 C ATTACHMENT B ROME BUYER ASSISTANCE PROGRAM DEFINITION OF LOW INCOME A low income household 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. HOUSEHOLD 1 2 3 4 5 6 7 8 SIZE: 80% OF MEDIAN: $31,700 $36,250 $40,750 $45,300 $48,900 $52,550 $56,150 $59,800 HOME PER UNIT SUBSIDY Number of Maximum Subsidy Bedrooms 0 $66,552 1 $76,289 2 $92,767 3 $120,008 4 $131,732 Revised 3/19/99 10 ATTACHMENT C PROJECT CONSTRUCTION DOCUMENTS AND PROGRESS PAYMENT SCHEDULE I. CONSTRUCTION DOCUMENTS The following documents or information shall be provided by the Agency for each project (address specific) assisted with HOME funds. Pre-purchase Documents for the Property Property appraisal Letters of support from community Entironmental review documents Detailed specifications for rehabilitation Cost estimate by Agency personnel for rehabilitation work being completed Proposed project costs in addition to rehabilitation contract costs Rehabilitation Documentation Bid documents, including advertisement Contracts between Agency and subcontractors Completion Documents Invoices and Full Unconditional Waivers from each subcontractor Final inspection report from Agency and County personnel Contract amendments/change orders between Agency and builder with written authorization from Oakland County Community Development Certificate of Occupancy from local building department Contractor/Subcontractor Activity Report Building Standards Certification Home buyer Documents Home buyer application package (prior to purchase agreement) Purchase agreement Property Sale Documents (prior to loan closing) Appraisal Loan closing documents for property sale II. PROJECT PROGRESS PAYMENT SCHEDULE Each project progress payment is address specific and will be based on completion of the following phases: Phase 1: Site Acquisition - the request must include an independent appraisal of the property, purchase agreements, preliminary closing documents, the date of the closing and a copy of the clear title documentation. Phase 2: Post Rehabilitation - must include an invoice from the Agency, an inspection report from your Agency personnel documenting work completed, an inspection report from Oakland County personnel, and an accounting invoice from your Agency for the work to be paid. Any variation to the payment schedule must be mutually agreed upon by the Agency and Oakland County Community Development. 11 Sr ATTACHMENT D D.RUCEREEM/SIRKPLACE.TOLICY_STATEMEME The Federal Drug-Free Workplace Act of 1988 imposes certain requirements on and its employees as recipients of federal grant funds. supports the purpose and goals of the Act and by this policy, announces its intention to comply with this Act and make continuing "good faith" efforts to provide a drug-free workplace. Therefore, it is the policy of that any unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance in the workplace is strictly prohibited. All employees of must abide by the terms of this policy and must notify their Manager of any criminai drug statute conviction no later than five (5) days after such conviction. Employees violating this policy are subject to appropriate personnel/disciplinary action, up to and including termination, and/or other remedial measures as the individual circumstances warrant. is committed to maintaining a drug-free workplace. All employees are expected to cooperate and give this policy their full support. 12 sr r , Resolution 499129 May 27, 1999 Moved by Palmer supported by Patterson the resolution be adopted. AYES: Garfield, Gregory, Jensen, Law, McCulloch, McPherson, Melton, Millard, Moffitt, Obrecht, Palmer, Patterson, Schmid, Sever, Suarez, Taub, Amos, Appel, Causey-Mitchell, Colasanti, Coleman, Devine, Dingeldey, Douglas, Galloway. (25) NAYS: None. (0) A sufficient majority having voted therefor, the resolution was adopted. STATE OF MICHIGAN) COUNTY OF OAKLAND) I, G. William Caddell, 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 27, 1999 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 Wh dVof May, 1999. G. William Caddell, County Clerk