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Although $4.6 million in NSP1 funds was earmarked for the county, the county needed to submit a formal application to the state in order to obtain the funds. That application was prepared by County staff with assistance from a grant administration consultant at no cost to the County. On March 17, 2009, the Board of County Commissioners (BCC) reviewed and approved the application for transmittal to DEO. In July of 2009, DEO notified County staff that the County's application had been approved and subsequently sent a contract to the County to execute. That contract was reviewed and approved by the BCC on August 18, 2009 and transmitted to DEO for its execution. DEO executed the agreement on September 11, 2009. During the time frame that the County was preparing its application for the NSP 1 funds, the County formally solicited for a grant administration consultant and selected Fred Fox Enterprises to assist the County with administering the grant. A grant administration contract was drafted and on March 3, 2009, was approved by the BCC. The grant administration contract included a negotiated fee of $200,000 based on anticipated activities tied to the projected County's $4,680,825 in NSP1 funds. Since signing the grant administration contract, an additional $1,695,639.41 in NSP1 Program Income (PI) funds were generated by the County from the re -sale of acquired NSP 1 homes. Those PI funds combined with the original $4.6 million in funds from DEO were used by the County to acquire foreclosed homes, rehabilitate those foreclosed homes, and sell and rent those homes to income qualified NSP 1 applicants. The administration activities for the additional $1.69 million in PI funds were not originally included in the grant administration contract because at that time, the County had been advised that PI funds would have to be returned to DEO. DEO later changed course and informed the County that program income funds generated by the County would be retained by the County to be used to continue NSP1 activities. Even though the additional $1.69 million in PI funds were not included in the grant administration contract, Fred Fox Enterprises, Inc. still provided grant administration services related to those additional funds. In essence, the consultant handled an unanticipated increase in workload related to a 36.2% unanticipated increase in NSP1 funds made available for the County's program activities. Between the use of the original $4.6 million grant allocation and the additional $1.69 million in PI funds, a total of forty-five (45) housing units have been acquired, rehabbed, and sold or leased to income qualified applicants. PI funds were utilized for twelve (12) of the forty-five (45) homes. The attached proposed amended NSP 1 grant administration contract includes revisions to recognize the additional expenditure of NSP1 program income funds, to recognize the additional work that the grant administration consultant completed, and to re -instate remaining tasks to be performed as part of grant close-out procedures. The amended agreement includes an additional allocation of up to $35,000 to Fred Fox Enterprises, Inc. for completion of services associated with the unanticipated additional funding and associated workload. The $35,000 figure is the estimated amount of NSP1 2 141