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HomeMy WebLinkAboutReports - 2023.06.15 - 38262 AGENDA ITEM: Acceptance from the State Land Bank Authority for the Initial Capitalization Costs of the Oakland County Housing Trust Fund DEPARTMENT: Health & Human Services - Neighborhood and Housing Development MEETING: Board of Commissioners DATE: Thursday, June 15, 2023 7:00 PM - Click to View Agenda ITEM SUMMARY SHEET COMMITTEE REPORT TO BOARD Resolution #2023-2828 Motion to accept one-time grant funding from the State Land Bank Authority for the initial capitalization of the Oakland County Housing Trust Fund in the amount not exceeding $400,000 and authorize the Chair of the Board of Commissioners to execute the grant agreement; further amend the FY 2023 and 2024 budgets as detailed in the attached Schedule A. ITEM CATEGORY SPONSORED BY Grant Penny Luebs INTRODUCTION AND BACKGROUND There is a need in Oakland County to create 11,582 additional units of affordable housing over the next decade, because 41.4% of Oakland County renters experience a cost burden associated with paying more than 30% of their income in rent. On November 10, 2021 via Miscellaneous Resolution (MR) #21446 Oakland County Board of Commissioners adopted the Brownfield Redevelopment Plan located at 2292 Sleeth Rd. Brownfield Redevelopment Project in the Charter Township of Commerce. The County had no Land Bank Authority at that time, so the developer of that project worked with the State Land Bank Authority (SLBA).The SLBA is the sole recipient of the Eligible Tax Reverted Property Specific Tax (commonly referred to as the "5/50 Tax"). In April, 2022 via MR #22135, the Board of Commissioners created the Housing Trust Fund. The SLBA agreed to contribute up to $400,000 of 5/50 Tax generated funds from the Commerce Project in the form of a one-time grant to the Oakland County Housing Trust Fund. POLICY ANALYSIS The grant funds from the State Land Bank Authority will be disbursed as follows: a) up to $150,000 for the tax year 2023* b) up to $250,000 for the tax year 2024** c) if the amount of the Commerce Project 5/50 Tax in either year is insufficient to meet the Grant amount, the remaining Grant amount shall be carried forward to the next tax year. No interest shall be accrued nor remitted. The total amount of the Commerce Project 5/50 Tax to be disbursed to the Housing Trust Fund will be $400,000. These grant funds must be used solely for costs related to the production of affordable/attainable housing within Oakland County and not used for administration or oversight of the program. The County has to ensure that priority is given to the development of housing units on parcels owned by the SLBA, Oakland County Treasurer, or Oakland County Land Bank Authority. County funding is not required for this grant continuation. This agreement has completed the Grant Review Process according to the Board of Commissioners Grant Procedures. *Upon receipt of the first Commerce Project 5/50 Tax payment to SLBA from the Oakland County Treasurer for the tax year 2023, after SLBA retains an amount for its administration, SLBA shall disburse up to $150,000 to the Housing Trust Fund within sixty (60) days thereof. **Upon receipt of the second Commerce Project 5/50 Tax payment to SLBA from the Oakland County Treasurer for the tax year 2024, after SLBA retains an amount for its administration, SLBA shall disburse up to an additional $250,000 to the Housing Trust Fund within sixty (60) days thereof. BUDGET AMENDMENT REQUIRED: Yes Committee members can contact Michael Andrews, Policy and Fiscal Analysis Supervisor at 248.425.5572 or andrewsmb@oakgov.com, or the department contact persons listed for additional information. CONTACT Shane Bies, Administrator Public Health ITEM REVIEW TRACKING Penny Luebs, Board of Commissioners Created/Initiated - 6/15/2023 AGENDA DEADLINE: 06/25/2023 7:00 PM ATTACHMENTS 1. PH&S_NHD_State Land Bank Authority grant to Housing Trust Fund_Sch.A 2. Oakland County - (Cover Letter) - signed ED 3. Oakland County - (Grant) COMMITTEE TRACKING 2023-06-06 Public Health & Safety - Recommend and Forward to Finance 2023-06-07 Finance - Recommend to Board 2023-06-15 Full Board - Accept and Authorize Motioned by: Commissioner Robert Hoffman Seconded by: Commissioner Angela Powell Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Kristen Nelson, Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson, Janet Jackson, William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan Johnson (17) No: None (0) Abstain: None (0) Absent: Ajay Raman, Gary McGillivray (2) Passed Oakland County, Michigan HEALTH AND HUMAN SERVICES DEPARTMENT/NEIGHBORHOOD HOUSING DEVELOPMENT DIVISION - STATE LAND BACK AUTHORITY GRANT TO HOUSING TRUST FUND Schedule "A" DETAIL R/E Fund Name Division Name Fund # (FND)Cost Center (CCN) # Account # (RC/SC) Program # (PRG)Grant ID (GRN) # Project ID # (PROJ) Region (REG) Budget Fund Affiliate (BFA) Ledger Account Summary Account Title FY 2023 Amendment FY 2024 Amendment FY 2025 Amendment R Housing Trust Fund Neighborhood Housing Dev FND21400 CCN1060701 RC615571 PRG172130 GRN-1004098 615000 State Operating Grants $150,000 $250,000 $- Total Revenues $150,000 $250,000 $- E Housing Trust Fund Neighborhood Housing Dev FND21400 CCN1060701 SC730373 PRG172130 GRN-1004098 730000 Contracted Services $150,000 $250,000 $- Total Expenditures $150,000 $250,000 $- P.O. Box 30766, Lansing, Michigan 48909 www.michigan.gov/landbank  landbank@michigan.gov  517-335-8212 Board of Directors Susan Corban Gary Heidel Quentin L. Messer, Jr. Helen J. Lehman Krysta Pate Lisa Webb Sharpe Kylee Mitchell Wells Emily Doerr Executive Director State of Michigan State Land Bank Authority September 6, 2022 Shane Bies Manager, Oakland County Neighborhood & Housing Development Division Oakland County 1200 North Telegraph Road Pontiac, Michigan 48341 Re: Oakland County Housing Trust Fund Dear Mr. Bies: The State Land Bank Authority (“SLBA”) is pleased to contribute funds from a recent project it is involved with located within Commerce Township, Oakland County, Michigan (the “Com merce Project”) to Oakland County, specifically the Oakland County Neighborhood & Housing Development Division ("County”), for initial capitalization of its Oakland County Housing Trust Fund (“Housing Trust Fund”). The Commerce Project will generate funds for SLBA through the Eligible Tax Reverted Property Specific Tax (commonly referred to as the “5/50 Tax”). From these 5/50 Tax generated funds, SLBA is pleased to grant a total amount not to exceed $400,000 to the County for the purpose of the Housing Trust Fund. It’s exciting to see the County engage in this endeavor along with recent establishment of the Oakland County Land Bank Authority. Terms of the grant are found in the grant agreement attached to this cover letter. Please feel free to contact James Tischler (tischlerj2@michigan.gov) or Adam Robach (robacha2@michigan.gov) of our staff with any questions. Truly, Emily Doerr Executive Director 1 STATE LAND BANK AUTHORITY GRANT WITH OAKLAND COUNTY The State Land Bank Authority (the “SLBA”) enters into a binding agreement (the “Agreement”) with Oakland County (the “Grantee”). The SLBA and Grantee shall sometimes be referred to in this Agreement individually as a “Party” or collectively as “Parties”. Grantee: Oakland County 1200 N. Telegraph Road Pontiac, Michigan 48341 I. NATURE OF SERVICES. The purpose of this Agreement is to provide capital to Grantee, specifically the Oakland County Neighborhood & Housing Development Division to be placed in the Oakland County Housing T rust Fund (the “Housing Trust Fund”) to directly support affordable/attainable housing development activities throughout Oakland County, Michigan as detailed in Exhibit A; these funds shall not be used for administration or oversight of the program (the “Grant Activities”). II. PERFORMANCE SCHEDULE. Starting Date: January 2, 2023 Ending Date: December 31, 2026 The term of this Agreement (the “Term”) shall commence on the Starti ng Date and shall continue until the occurrence of an event described in Section IX of this Agreement. III. INCORPORATION BY REFERENCE. The following document is incorporated by reference as binding obligations, terms and conditions of the Agreement. Exhibit A: Scope of Agreement and Disbursement Schedule In the event of any inconsistency between the provisions of Exhibit A and this Agreement, the provisions of this Agreement shall control. IV. PAYMENT SCHEDULE INFORMATION. A. The SLBA agrees to pay the Grantee a sum not to exceed Four Hundred Thousand Dollars ($400,000) (the “Grant”). B. Payment under this Agreement shall be made by the SLBA to Grantee within sixty (60) days of receipt of each yearly 5/50 Tax (as defined herein) in accordance with the disbursement schedule detailed on Exhibit A. C. Public Act 533 of 2004 requires that payments under this Agreement be processed by electronic funds transfer (EFT). Contractor is required to register to receive payments by EFT at the State Integrated Governmental Manag ement Applications (SIGMA) Vendor Self Service (VSS) website (www.michigan.gov/VSSLogin). 2 V. SLBA GRANT ADMINISTRATOR. The Grantee must communicate with the SLBA representative named below or his or her designee regarding this Agreement. The Grant Administrator may be changed, at any time, at the discretion of the SLBA. James Tischler (the “Grant Administrator”) Post Office Box 30766 Lansing, Michigan 48909 tischlerj2@michigan.gov VI. GRANTEE DUTIES. The Grantee agrees to undertake, perform, and complete the services fully described in Exhibit A and herein. The Oakland County Board of Commissioners created the Oak land County Housing Trust Fund in Miscellaneous Resolution #22-135. VII. RELATIONSHIP OF THE PARTIES. A. Due to the nature of the services described herein and the need for specialized skill and knowledge of Grantee, the SLBA is entering into this Agreement with Grantee. As a result, neither Grantee nor any of its employees or agents is or shall become an employee of the SLBA due to this Agreement. B. Grantee will provide the services and achieve the results specified in this Agreement free from the direction or control of the SLBA as to means and methods of performance. C. The SLBA is not responsible for any insurance or other fringe benefits, including, but not limited to, Social Security, Worker's Compensation, income tax withholdings, retirement or leave benefits, for Grantee or its employees. Grantee assumes full responsibility for the provision of all such insurance coverage and fringe benefits for its employees. D. All tools, supplies, materials, equipment and office space necessary to carry out the services described in this Agreement are the sole responsibility of Grantee unless otherwise specified herein. E. Grantee shall retain all control of its employees and staffing decisions independent of the direction and control of the SLBA. VIII. ACCESS TO RECORDS. During the Term and for seven years after the Ending Date, the Grantee shall maintain reasonable records, including evidence that the services actuall y performed, and the identity of all individuals paid for such services, and shall allow access to those records by the SLBA or their authorized representative at any time during this period. IX. TERMINATION. This Agreement shall terminate upon the earlier of the following: A. The Ending Date. 3 B. Termination by the SLBA, by giving thirty calendar days prior written notice to the Grantee. In the event that the Legislature of the State of Michigan (the “State”), the State Government, or any State official, commission, authority, body, or employee or the federal government (a) takes any legislative or administrative action which fails to provide, terminates or reduces the funding necessary for this Agreement, or (b) takes any legislative or administrative action, which is unrelated to the source of funding for the Grant, but which affects the SLBA’s ability to fund and administer this Agreement and other SLBA programs, provided, however, that in the event such action results in an immediate absence or termination of funding, cancellation may be made effective immediately upon delivery of notice to the Grantee. C. Termination by the SLBA pursuant to Section XIX of this Agreement. X. INTENTIONALLY OMITTED. XI. INTENTIONALLY OMITTED. XII. INTENTIONALLY OMITTED. XIII. INTENTIONALLY OMITTED. XIV. CONFLICT OF INTEREST. Except as has been disclosed to the SLBA, Grantee affirms that neither the Grantee, nor its Affiliates or their employees has, shall have, or shall acquire any contractual, financial business or other interest, direc t or indirect, that would conflict in any manner with Grantee’s performance of its obligations under this Agreement or otherwise create the appearance of impropriety with respect to this Agreement. Grantee further affirms that neither Grantee nor any affiliates or their employees has accepted or shall accept anything of value based on an understanding that the actions of the Grantee or its affiliates or either’s employees on behalf of the SLBA would be influenced. Grantee shall not attempt to influence any SLBA employee by the direct or indirect offer of anything of value. Grantee also affirms that neither Grantee, nor its Affiliates or their employees has paid or agreed to pay any person, other than bona fide employees and consultants working solely for Grantee or its Affiliate, any fee, commission, percentage, brokerage fee, gift or any other consideration contingent upon or resulting from the execution of this Agreement. In the event of change in either the interests or services under this Agreement, Grantee will inform the SLBA regarding possible conflicts of interest which may arise as a result of such change. Grantee agrees that conflicts of interest shall be resolved to th e SLBA’s satisfaction or the SLBA may terminate this Agreement. As used in this Paragraph, “conflict of interest” shall include, but not be limited to, conflicts of interest that are defined under the laws of the State of Michigan. XV. INTENTIONALLY OMITTED. XVI. TOTAL AGREEMENT. This Agreement, including Exhibit A incorporated herein, is the entire agreement between the Parties superseding any prior or concurrent agreements as to the services being provided, and no oral or written terms or conditions w hich are not contained in this Agreement shall be binding. This Agreement may not be changed except by mutual agreement of the Parties reduced to writing and signed. 4 XVII. ASSIGNMENT/TRANSFER/SUBCONTRACTING. Except as explicitly contemplated by this Agreement, the Grantee shall not assign, transfer, convey, subcontract, or otherwise dispose of any duties or rights under this Agreement without the prior specific written consent of the SLBA. Any future successors of the Grantee will be bound by the provisions of this Agreement unless the SLBA otherwise agrees in a specific written consent. The SLBA reserves the right to approve subcontractors for this Agreement and to require the Grantee to replace subcontractors who are found to be unacceptable to the SLBA. XVIII. COMPLIANCE WITH LAWS. The Grantee is not and will not during the Term be in violation of any laws, ordinances, regulations, rules, orders, judgments, decrees or other requirements imposed by any governmental authority to which it is subject, and will not f ail to obtain any licenses, permits or other governmental authorizations necessary to carry out its duties under this Agreement. XIX. DEFAULT. The occurrence of any one or more of the following events or conditions shall constitute an “Event of Default” under this Agreement, unless a written waiver of the Event of Default is signed by the SLBA: (a) any representation, covenant, certification or warranty made by the Grantee shall prove incorrect at the time that such representation, covenant, certification or warranty was made in any material respect; (b) the Grantee’s failure generally to pay debts as they mature, or the appointment of a receiver or custodian over a material portion of the Grantee’s assets, which receiver or custodian is not discharged within Sixty calendar days of such appointment; (c) any voluntary bankruptcy or insolvency proceedings are commenced by the Grantee; (d) any involuntary bankruptcy or insolvency proceedings are commenced against the Grantee, which proceedings are not set aside within Sixty calendar days from the date of institution thereof; (e) any writ of attachment, garnishment, execution, tax lien, or similar writ is issued against any property of the Grantee, which is not removed within Sixty calendar days. (f) the Grantee’s failure to comply with the reporting requirements hereof; (g) the Grantee’s failure to comply with any obligations or duties contained herein; (h) Grantee’s use of the Grant funds for any purpose not contemplated under this Agreement. XX. AVAILABLE REMEDIES. Upon the occurrence of any one or more of the Events of Default, the SLBA may terminate this Agreement immediately upon notice to the Grantee. The termination of this Agreement is not intended to be the sole and exclusive remedy in case any Event of Default shall occur and each remedy shall be cumulative and in addition to every other provision or remedy given herein or now or hereafter existing at law or equity. XXI. REIMBURSEMENT. If this Grant is terminated as a result of Section XIX hereof, the SLBA shall have no further obligation to make a Grant disbursement to the Grantee. The Grantee shall reimburse the SLBA for disbursements of the Grant determined to have been expended for purposes other than as set forth herein as well as any Grant funds, which were previously disbursed but not yet expended by the Grantee. XXII. NOTICES. Any notice, approval, request, authorization, direction or other communication under this Agreement shall be given in writing and shall be deemed to have been delivered and given for all purposes: (a) on the delivery date if delivered by electronic mail or by confirmed facsimile; (b) on the delivery date if delivered personally to the Party to whom the same is directed; (c) One business day after deposit with a commercial overnight carrier, with written verification of receipt; or (d) Three business days after the mailing date, whether or not actually received, if sent by U.S. mail, return receipt requested, postage and charges 5 prepaid, or any other means of rapid mail delivery for whic h a receipt is available. The notice address for the Parties shall be the address as set forth in this Agreement, with the other relevant notice information, including the recipient for notice and, as applicable, such recipient’s fax number or e-mail address, to be as reasonably identified by notifying Party. The SLBA and Grantee may, by notice given hereunder, designate any further or different addresses to which subsequent notices shall be sent. XXIII. AMENDMENT. This Agreement may not be modified or amended except pursuant to a written instrument signed by the Parties. XXIV. GOVERNING LAW. This Agreement is made and entered into in the State of Michigan and shall in all respects be interpreted, enforced and governed under the laws of the State of Michigan without regard to the doctrines of conflict of laws. The terms of this provision shall survive the termination or cancellation of the Agreement XXV. COUNTERPARTS AND COPIES. The Parties hereby agree that electronic signatures of the Parties to this Agreement shall be as binding and enforceable as original signatures; and that this Agreement may be executed in multiple counterparts with the counterparts together being deemed to constitute the complete agreement of the Parties. Copies (whether photostatic, .pdf, facsimile or otherwise) of this Agreement may be made and relied upon to the same extent as though such copy was an original. XXVI. JURISDICTION. In connection with any dispute between the Parties under this Agreement, the Parties hereby irrevocably submit to jur isdiction and venue of the Michigan Court of Claims for claims brought against SLBA and to the circuit courts of the State of Michigan located in Ingham County for claims brought against the Grantee. Each Party hereby waives and agrees not to assert, by way of motion as a defense or otherwise in any such action any claim (a) that it is not subject to the jurisdiction of such court, (b) that the action is brought in an inconvenient forum, (c) that the venue of the suit, action or other proceeding is improper or (d) that this Agreement or the subject matter of this Agreement may not be enforced in or by such court. XXVII. SURVIVAL. The terms and conditions of sections VII, VIII, XI, XV, XVII, XXIV and XXVI shall survive termination of this Agreement. XXVIII. PUBLICITY. At the request and expense of the SLBA, the Grantee will cooperate with the SLBA to promote the Grant Activities through one or more of media coverage or other public presentation acceptable to the Parties. (remainder of page intentionally left blank) 6 The signatories below warrant that they are empowered to enter into this Agreement. GRANTEE ACCEPTANCE: Oakland County Dated: _____________ _____________________________ Its: By: SLBA ACCEPTANCE: State Land Bank Authority Dated: _____________ _____________________________ By: Jeffrey M. Huntington Its: Authorized Officer A-1 EXHIBIT A SCOPE OF AGREEMENT AND DISBURSEMENT SCHEDULE Grantee desires to launch its new, Housing Trust Fund which will support affordable/attainable housing development throughout Oakland County, Michigan. SLBA supports this initiative and agrees to contribute funds from a recent project it is involved with located within Commerce Township, Oakland County, Michigan (the “Com merce Project”). The Commerce Project will generate funds for SLBA through the Eligible Tax Reverted Property Specific Tax (commonly referred to as the “5/50 Tax”). From these 5/50 Tax generated funds, SLBA agrees to grant a total amount not to exceed $400,000 to Grantee for the purpose of the Housing Trust Fund. The Grant funds shall be disbursed as follows: a) Upon receipt of the first Commerce Project 5/50 Tax payment to SLBA from the Oakland County Treasurer for tax year 2023, after SLBA retains an amount for its administration, SLBA shall disburse up to $150,000 to the Housing Trust Fund within sixty (60) days thereof. b) Upon receipt of the second Commerce Project 5/50 Tax payment to SLBA from the Oakland County Treasurer for tax year 2024, after SLBA retains an amount for its administration, SLBA shall disburse up to an additional $250,000 to the Housing Trust Fund within sixty (60) days thereof. c) If the amount of the Commerce Project 5/50 Tax in either year is insufficient to meet the Grant amount, the remaining Grant amount shall be carried forward to the next tax year. No interest shall be accrued nor remitted. d) The total amount of the Commerce Project 5/50 Tax to be disbursed to the Housing Trust Fund shall be $400,000. Grant funds shall be used solely for costs related to the production of affordable/attainable housing within Oakland County, Michigan, these funds shall not be used for administration or oversight of the program. Grantee shall ensure that priority is given for the development of housing units on parcels owned by the SLBA, Oakland County Treasurer, or a land bank, in the event Oakland County creates a land bank. Within seven (7) business days of the last business day of each quarter, the Grantee will provide a progress report to the Grant Administrator. The progress report shall contain a brief summary of the development activities of the Housing Trust Fund related to the production of affordable/attainable housing within Oakland County, Michigan during that quarter; and any problems, real or anticipated which should be brought to the attention of the Grant Administrator.