HomeMy WebLinkAbout2013-120 7-Z• 13
AMENDED AND RE -STATED AGREEMENT BETWEEN
Indian River County [ Grantee ]
AND
Indian River Habitat for Humanity [ Developer]
FOR THE
Neighborhood Stabilization Program 3 ( NSP3 )
THIS Amended and Re-stated Agreement, is entered this 2nd day of July, 2013 by and between
the NSP3 Grantee of Indian River County ( herein called "Grantee" ) and Indian River Habitat for
Humanity ( herein called " Developer" ) .
WHEREAS, Grantee was awarded a Neighborhood Stabilization Program 3 Community
Development Block Grant ( CDBG ) (Contract #B- 11- UN- 12 -0022 ) from the U .S. Department of Housing
and Urban Development ( HUD), which provides for the purchase, rehabilitation, administration, and sale
of foreclosed properties to eligible very low, low and moderate income families, and
WHEREAS, on August 16, 2011 Grantee entered into an Agreement with Developer to carry out
specific activities within Grantee's NSP3 contract with HUD in accordance with applicable notices,
regulations and guidance from HUD; and
WHEREAS, Grantee and Developer mutually agree to significant changes to the August 16, 2011
Agreement;
NOW, THEREFORE, in consideration of the mutual promises and covenants, the parties agree to the
following Amended and Re-stated Agreement.
I . SCOPE OF SERVICE
Developer will be responsible for carrying out NSP3 activities in a manner satisfactory to Grantee and
consistent with all standards required as a condition of providing these funds. Program activities will
include the following uses and corresponding activities eligible under NSP3 :
A. Developer Responsibilities
1 . This program activity involves the acquisition and development
( rehabilitation ) of residential property that has been foreclosed upon or abandoned, is
blighted or is vacant in accordance with the definitions and requirements of the NSP3
program, to the extent that these activities are incorporated in this Section I and in
Exhibiti A.
1 I Page Amended and Re-stated NSP3 Developer Agreement : July 2 , 2013
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Specifically, Developer agrees to undertake the following activities :
A. Identify' foreclosed, abandoned, and blighted single-family residences in the
NSP3 target area;
Be Contract for purchase of homes meeting program criteria;
C . Complete all pre-acquisition due diligence activities;
D. Acquire eligible properties with mortgage assigned;
E . Prepare rehabilitation work write-up for acquired properties;
F. Rehabilitate acquired properties using Habitat for Humanity's sweat equity
program;
G . Solicit potential NSP3 homebuyers;
H . Complete income verification and NSP3 qualification process for NSP3
homebuyer applicants;
1 . Provide principal mortgage financing for NSP3 homebuyers; and
J . Sell NSP3 homes to income qualified buyers .
2 . Developer will carry out this program in accordance with the policies,
procedures and other provisions of the Single-Family Purchase, Redevelopment and
Sales Program Manual ( "Program Manual" ), provided to Developer by Grantee, and
incorporated herein by reference . Developer hereby agrees to accept and follow any i
written amendments to the Program Manual by Grantee that are made as a direct result
of additional guidance or regulations provided by HUD, as well as any written
amendments that are mutually agreed upon by Grantee and Developer.
3 . Developer is responsible for providing the deliverables that are
described in Section I .A.4 below and Exhibit A, Homes Sales Activities and Detailed
Budget, within the time periods and for the approximate average budget amounts
described therein . The total use of NSP3 funds provided under this Agreement may not
exceed the total amount of NSP3 funds indicated in Section III (A) below.
4 . Developer's expenditures for program delivery will be limited as
follows, unless changes to the limits are agreed to in writing by Grantee and Developer
for a particular property .
a . Minimum number of homes to be acquired, developed and sold using
base grant funds discussed in Section III (A) below: Thirteen (13).
b . Minimum number of homes to be acquired, developed, and sold using
program income funds discussed in Section III (A) below: Five (5) .
c. Eligible properties : Developer will acquire only properties in designated
NSP3 target areas that are eligible under NSP3 guidelines for rehabilitation or
redevelopment as affordable residential properties. These guidelines state that
properties acquired must be abandoned or foreclosed upon, blighted, or vacant
residential structures . Residential structures will be rehabilitated consistent with
NSP3 guidelines.
2 Page Amended and Re-stated NSP3 Developer Agreement : July 2 , 2013
d . Designated target area : Developer may, carry out this activity only in the
following NSP3 target area : South of 4th Street, east of 43rd Avenue, north of 25th
Street SW, and west of Old Dixie Highway, as shown in the map in Exhibit Be If,
however, an amended target area is adopted by Grantee as part of a revision to the
Grantee' s NSP3 Abbreviated Action Plan and if that amended target area is
approved by HUD, that target area shall replace this target area .
e . At least 25% of Grantee' s total NSP3 funds (combined base grant and
Program Income) must be used to benefit households with incomes at or below 50%
of area median income . Developer shall be responsible for acquiring, rehabilitating,
and selling enough homes to income eligible households to meet this requirement.
It is hereby noted that the 25% calculation must include the County's portion of
funds.
f. Developer may execute a home purchase contract without obtaining
written approval from Grantee ; however, Developer shall provide a copy of said
contract along with copies of due diligence items to Grantee prior to termination of
the Due Diligence period for the home purchase . These due diligence items shall
include but shall not be limited to an appraisal, a survey, a home inspection report,
and a Wood Destroying Organism Report. Developer shall also provide Grantee
with proof of abandoned, foreclosed, or vacant status as applicable, preliminary
plans and specifications for rehabilitation or construction work, a preliminary
development cost and proof that property is located in the current NSP3 target
area . . The preliminary cost estimate will include applicable rehabilitation and
maintenance ( carrying) costs. Upon receipt of required due diligence items,
Grantee will inform Developer if there is one or more concerns based on its
assessment of NSP3 compliance, financial feasibility, conformity to expenditure
limits described herein, and the potential marketability of the property. If the
concern (s) cannot be addressed by Developer, Grantee may disallow the property
for inclusion/participation in the NSP3 .
g . Maximum NSP3 expenditure per dwelling unit : Developer may spend no
more than $ 130,000 on any single dwelling unit, unless Grantee gives written
approval for an additional amount due to the strategic value of a property for the
NSP3 program or unforeseen costs that were beyond the control of Developer.
h . Average NSP3 expenditure per dwelling unit : The average NSP3
expenditure per dwelling unit may not exceed $ 115,000 ( including developer's fee ) .
Grantee encourages Developer to acquire additional homes at a lower average NSP3
cost if it is feasible . This average may be administratively increased by Grantee staff
if market conditions improve which causes an increase in acquisition costs and/or
development costs. Developer shall provide evidence of this to Grantee staff, and .
this information and Grantee's staff response shall be appended to this contract.
i . Developer fee allowed per dwelling unit : The allowed developer fee is
10% of the purchase price and a fixed amount of $ 1, 000 per dwelling unit for
rehabilitation of each dwelling unit . 1,Developer' s fee shall be due and payable as
follows :
3 Page Amended and Re-stated NSP3 Developer Agreement: July 2 , 2013
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An amount equal to five percent ( 5%) of the purchase price paid to the seller for the
property being acquired shall be due and payable to Developer upon the acquisition
of each property by Developer.
One thousand dollars ($ 1,000) per unit will be paid upon final inspection approval
by Grantee of the rehabilitation of each unit .
An amount equal to five percent (5%) of the purchase price paid to the seller for the
property shall be due and payable to Developer at the time of resale of the dwelling
unit.
It is understood by both parties that the Grantee, utilizing NSP funding, will pay all
costs associated with the acquisition and rehabilitation of each property, including
all closing costs and recording fees.
It is understood by both parties that Developer is responsible for obtaining property
insurance, coordinating yard maintenance, providing all utilities, paying all property
taxes, and maintaining the acquired housing units; however, the cost of all services
required for each housing unit, beginning at initial acquisition of the property by
Developer and ending at resale of the property, will be paid by Grantee utilizing NSP
funding or paid by the Developer and reimbursed by Grantee utilizing NSP funding.
j . Allowed amount of NSP3 Homeowner Financial Assistance per buyer:
The allowed amount of NSP3 Homeowner Financial Assistance per Buyer is
described in the Program Manual . The total amount of Homeowner Financial
Assistance will be recaptured and the obligation secured by a promissory note and
mortgage with the Grantee named as lien holder, with an amount and terms as
defined elsewhere in this section and in the Program Manual .
k. Minimum cash contribution by buyer: Each buyer of an NSP3 home will
provide a minimum amount of cash or family gifts toward the combined down
payment and closing costs, as described in the Program Manual .
I . Acquisition, rehabilitation/ construction and soft costs listed in Exhibit A
are not subject to per-home cost limits on a line- item basis, but must be reasonable
and ordinary costs of development and, in the aggregate, must conform to the per-
home cost limits and average costs described in Section I (A) (4) . No NSP3 funds may
be spent for purchases of equipment or furnishings.
m . Accounting for expenditures : Developer will account for total NSP3
expenditures per home by means of assigning an accounting code for NSP34unded
or reimbursed expenses for each property and another accounting code, if
applicable, for non- NSP3 funded expenditures ( if any) . At the time of the sale of an
NSP3-assisted home, Developer will provide Grantee with a complete accounting of
NSP3 expenditures for that home and non- NSP3 expenditures, if any. The separate
accounting of NSP3 and other funds used is required for establishing the maximum
4 Page Amended and Re-stated NSP3 Developer Agreement: July 2 , 2013
allowed sale price and will provide necessary financial data on NSP3-funded
expenditures in the event of a HUD audit of program activities.
n . Sale price : The sale price of an NSP3 home shall either be the after-
rehabilitation market value of the home or the total amount of NSP3 and non-NSP3
expenditures spent on the home, whichever is less . The market value of a home will
be determined in accordance with the provisions in the Program Manual .
o . Establishment of a lien in favor of Grantee : Upon sale of an NSP3-
funded home, Developer will cause the homebuyer(s) to execute a promissory note
and mortgage in favor of Grantee for the combined amount of the Homeowner
Financial Assistance as defined herein and in the Program Manual . The note and
mortgage must be prepared by Developer using forms provided by Grantee .
Grantee must review and approve the language inserted in these form documents
prior to the documents being executed by the homebuyer(s) .
p . Repayment of net proceeds of sale to Grantee : Upon sale of an NSP3-
funded home, Developer or applicable closing agent will transmit the net proceeds
of sale to Grantee . Net proceeds of sale are defined as follows:
i . The sale price of the homes
ii . ( Minus) the amount of any Homeowner Financial Assistance provided to
buyer, as defined herein and in the Program Manual, and described on the
settlement statements
iii . ( Minus) Developer costs of sale as documented by the settlement
statement, including but not limited to seller-paid closing costs;
iv. ( Plus) Any reimbursements to Developer of costs previously paid or
reimbursed with NSP3 funds, such as pro- rated taxes and assessments.
S . NSP3-assisted homes must be sold only to income-qualified households in the
categories described in the Grantee' s Agreement with the U .S. Department of Housing
and Urban Development and in at least the minimum numbers of households required
by that agreement .
6. Environmental reviews : Grantee is responsible for completing site
specific environmental reviews Developer shall share with Grantee any information
learned that may be useful to Grantee in preparing each site specific environmental
review.
7 . Developer is responsible for contracting with one or more agencies that are
qualified to provide required 8 hour pre-purchase counseling and homebuyer education
to prospective homebuyers in Developer's home sales program . Alternatively, if
Developer is or becomes HUD certified to provide the required 8 hour pre-purchase
counseling and homebuyer education, and if HUD allows for it, Developer may provide
5 Page Amended and Re-stated NSP3 Developer Agreement : July 2 , 2013
i
the counseling . Developer shall ensure that qualified homebuyers have successfully
completed the HUD certified homebuyers educational course prior to purchasing a NSP3
property.
Be Grantee Responsibilities
Grantee is responsible for the following tasks and deliverables.
1 . Approving each property purchase as described herein and in the Program
Manual .
2 . Completing Tier 1 environmental assessments and providing Tier 1 clearances
for all NSP3 target areas, as well as preparing site-specific environmental reviews.
3 . Managing all draws of NSP3 funds from HUD and payment of valid and properly
documented draw requests from Developer.
4 . Reporting to HUD via the Disaster Reporting Government Reporting ( DRGR)
system, using, in part, data provided by Developer.
5 . Monitoring all program activities of Developer to assure compliance with the
terms of this Agreement, including all NSP3 requirements.
-6. Processing requests for disbursements of NSP3 funds in a timely manner
(eligible acquisition, rehabilitation, maintenance, and sale costs), Grantee will clearly and
promptly describe any deficiencies identified by Grantee that prevent a disbursement or portion
of a disbursement from being approved . Upon the request of Developer, Grantee must
promptly itemize and describe such deficiencies in writing .
7 . Ensuring that information is reported in the Disaster Recovery Grant Reporting
( DRGR) system in a timely manner. Grantee must comply with the NSP3 performance reporting
requirements and with any additional reporting requirements announced by HUD at any time
during the duration of this agreement
c. Income Eligibility Requirements
In accordance with the Wall Street Reform and Consumer Protection Act of 2010,
Developer will use all NSP3 funds to assist individuals and families whose incomes do not exceed
120 percent of area median income . Grantee is responsible for ensuring that 25 percent of the
total grant is used for the purchase and redevelopment of abandoned or foreclosed upon homes
or residential properties to house individuals and families whose incomes do not exceed 50
percent of area median income ., Developer will use NSP3 funding for individuals and families at
or below 50 percent of area median income as required by provisions elsewhere in this
agreement.
6 Page Amended and Re-stated NSP3 Developer Agreement : July 2 , 2013
D . Developer Staffing
The names and roles of Developer's key personnel (staff or contractors) executing the
project are as follows .
Chief Executive : Andrew R . Bowler
NSP3 Project Manager: Susan Reaves
Construction Manager: Larry Gibson
Financial staff person responsible for approving submission of NSP3 payment requests : Sara
Mayo
E . Performance Monitoring
Grantee will monitor the performance of Developer based on goals and performance
standards as stated above along with all other applicable federal, state and local laws,
regulations, and policies governing the funds provided under this contract . Substandard
performance as determined by Grantee will constitute noncompliance with this Agreement. If
corrective action is not taken by Developer within a reasonable period of time after being
notified by Grantee, contract suspension or termination procedures will be initiated . Developer
agrees to provide HUD, the HUD Office of Inspector General, the General Accounting Office,
Grantee, or Grantee's internal auditor( s) access to all records related to performance of
activities in this agreement.
F . Progress Reports and Other Reports
Developer hereby agrees to provide in a timely manner all necessary progress reports
and other reports required by Grantee on forms to be provided by Grantee .
II . TIME OF PERFORMANCE
A. Start and Completion Dates
Services of Developer shall start upon execution of this agreement by Indian River
County and Developer and end on the 315` day of December 2015 with at least S1.500.428. in
combined Grantee and Developer NSP3 funds having been expended by March 9, 2014 (see
Section III .A. of this agreement for the specific Grantee and Developer allocations) . Grantee
may, at its sole discretion, and if not disallowed by HUD, administratively approve at the staff
level up to a 1 year extension for either of the dates referenced above for expenditure of NSP3
funds. The allowance for an extension of either or both deadlines must be in writing as
described in Section III .C. below.
7 1 Page Amended and Re-stated NSP3 Developer Agreement : July 2 , 2013
i
Notwithstanding the above allowed extensions, the term of this Agreement and the
provisions herein shall be extended to cover any additional time period during which Developer
is responsible for NSP3 reporting or compliance measures or remains in control of NSP3 assets.
III . BUDGET
A. Program Budget
With NSP3, there is a base grant allocation from HUD to Grantee of $ 1, 500,428. Of that
$ 1,500,428 in base grant funds, Grantee hereby allocates S1,30,386 to Developer for NSP3
allowed/required housing acquisition, rehabilitation, maintenance, and re-sale activities . The
remaining $ 150,042 of the $ 1, 500,428 base grant is reserved for Grantee to cover costs for
administering the NSP3 grant.
While the $ 150,042 is reserved for Grantee's use, it is understood that Grantee may not
need all of the $ 150,042 . Therefore, a portion of these funds may become available for
Developer' s acquisition, rehabilitation, maintenance, and resale activities. The specific amount
of these funds available to Developer ( if any) will be determined by Grantee staff during the
duration of the grant.
Besides NSP3 base grant funds, a projected additional $ 1, 300,000 in N5P3 Program
Income funds will be available for Grantee and Developer use through December 2015 (this date
may be extended pursuant to Section II .A. of this agreement) . These Program Income funds are
funds returned to the Grantee by Developer from the sale of NSP3 housing units. Per current
HUD rules, Program Income must be used to continue NSP3 activities .
Grantee hereby allocates up to S1.300.000 in Program Income Funds to Developer ( in
addition to the $ 1, 350, 386 in base grant funds )for NSP3 allowed/required housing acquisition,
rehabilitation, maintenance, and re-sale activities. These Program Income funds will be
available to Developer only as the funds become available to the Grantee ( i .e . from the return of
NSP3 funds from the sale of housing units) . It is understood that a portion of the Program
Income funds will be used by Grantee as needed for its NSP3 related activities and will not be
allocated to Developer. Developer must coordinate with Grantee on a regular basis to identify
the amount of available Program Income 'funds . It is also understood that the $ 1, 300,000 in
projected Program Income funds is not a hard number and, because of this, the total amount of
Program Income funds that will be generated and available for Developer's NSP3 activities may
be less.
Be Additional Budget Details
A detailed project budget and cash flow projections are included in Exhibit A. In
addition, Grantee may require more detailed or different budget breakdowns than the one
contained herein, and Developer shall provide such supplementary budget information in a
timely fashion in a form and content prescribed by Grantee .
8 Page Amended and Re-stated NSP3 Developer Agreement: July 2 , 2013
C. Recapture and Reallocation of Developer's Allocation of NSP3 Funds
If Developer fails to expend NSP3 funds as indicated and as required by this agreement,
Grantee at its sole discretion may recapture a portion or all of Developer's total NS133 funding
allocation . The portion recaptured will be equal to Grantee' s estimate of the amount of NSP3
funds that would remain unspent by the spending deadlines described herein, based on
Developer's activities to date and capacity to complete the work .
In addition, the amount of Developer's NSP3 funding allocation that is not obligated or
expended by the deadlines in Section II herein will be recaptured immediately unless Grantee
grants an extension of the deadline in writing based on extenuating circumstances and
compelling evidence that obligations will be completed during the extended period .
IV. PAYMENT
It is expressly agreed and understood that the total amount of NSP3 funds to be paid by Grantee to
Developer under this Agreement shall not exceed the amount described in Section IIIA. herein plus
additional amounts allocated, if any. Requests for the payment of eligible expenses shall be associated
with the budget line items in Exhibit A and in accordance with performance .
V. NOTICES
Notices required by this Agreement shall be in writing and delivered via mail ( postage prepaid ),
commercial courier, personal delivery, e-mail, or sent by facsimile or other electronic means. Any notice
sent as aforesaid shall be effective on the date of sending. All notices and other written communications
under this Agreement shall be addressed to the individuals in the capacities indicated below, unless
otherwise modified by subsequent written notice .
Communication and details concerning this contract shall be directed to the following contract
representatives:
Indian River County Indian River Habitat for Humanity, Inc .
Grantee Developer
Robert M . Keating, Community Andrew R . Bowler, President/CEO
Development Director
Name & Title Name & Title
Indian River County Indian River Habitat for Humanity
Grantee Developer
180127th Street, Vero Beach, FL 32960 4568 N . US Highway 1 . Vero Beach , FL 32967
[Address] [Address]
(772 ) 226 - 1246 ( 772 ) 562-9860
[Telephone] [Telephone]
9 Page Amended and Re-stated NSP3 Developer Agreement : July 2 , 2013
(772 ) 9784806 ( 772 ) 562-8732
[ Fax Number] [ Fax Number]
bkeatin @ircgov.com abowler0irchabitat.org
[ E-mail] [ E-mail]
VI . ENTIRE AGREEMENT
This agreement between Grantee and Developer for the use of funds eligible for receipt supersedes all
prior or contemporaneous communications and proposals, whether electronic, oral, or written between
Grantee and Developer with respect to this Agreement.
Additional requirements associated with this agreement are described in Exhibits A and B .
Date
IN WITNESS WHEREOF, the Parties have executed this contract as of the date first written above .
BOARD OF COUNTY COMMISSIONERS ° M�SS NNORN
OF INDIAN RIVER COUNTY °° : O•. • • • • j
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BY: ` a � .•
a
eph E. Flescher, Chairman enc � ca
BCC roved : July 2 , 2 13 • o°
ATTEST BY: ':�°°
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CLERK CIRCUIT COURT
INDIAN RIVE HABITAT FOR HUMANITY (DEVELOPER)
BY:
Andrew R . Bowler, President/CEO
WITNESS
BY:
Signature
BY:
Printed Name of Witness
T7T70ntL SUFFICIENCY
Alan Polackwifik County Attorney
10 Page Amended and Re-stated NSP3 Developer Agreement : July 2 , 2013
2013 _ apo 2w
WU31
All" nu loos ca NOW Dec . . J484Urrh Apffloluse 1111116SM aftaee , JanAbuch AgdWune Jullii4ept Oabpec
TOt4U
HOME DEVELOPMENT ACTIVITIES
0
Acquisition agreements (housing units 13 1 1 1 1 1 1 19
Acquisition cosi (housing units 12 1 11 1 1 1 1 19
Construction specsifestscompleted (units) 13 1 1 1 1 1 1 19
Rehabs new construction completed units 31 2 1 2 2 1 1 2 1 1 1 1 11
19
Housing units sold 3 2 11 2 21 11 31 1 1 11 1 11 19
INCOME TARGETING AND SETASIDE EXPENDITURES
Projected tl of homes sold to households x50% AMI0 .J
actual R vary) 1 1 1 1 1 1 1 7
Projected a of homes sold to households at <120% AMI Cr
actual p vary) 2 1 1 1 1 1 2 1 1 1 12
PROJECTED AVERAGE SF UNIT COSTS NSP Fulled Other Wrrdi Total NOTES
Purchase price of Property acquired $0 $63,500 No fees or soft costs may be charged except those below
Acgunation dewdlaperfee $0 $3,175 Fee must cover costs of research and other acquisition costs not described in other line items
Acquisition: prorations, IWI, title and recording costs $o $2,000 O
Rehabilitation construction $0 $22AS01 Includes site security costs 3
Rehabilconstruedw developerfee
a,. $o $11000
Real estate taxes during holding rind $0 $1,500 'w
Property and liability insurance during holding period '�$ $o $10500
I It
2nd closing - prorations, legal, title and records costs $o $2,000 Down payment assistance to buyers not included - will be "paper transfers" on the
settlement sheets y
Commission for sale of home to homebuyer $0 $o
Finaldeveb rsak _ T$ $0 $3,175
Total Costs . . .51000000 $0 01
P'h
2023 2004 . r_
Siq�-?012"-`F . . . r . .
PROJECTED DEVELOPER NSP FUNDS EXPENDED LUV4013 - '. Juse '. July. . Aug SOPLA 04, Nm pec -Anaaarch Aprilkilusse` ... Ju~
.Odom TOTALS AWN
Acquisition costs $8240100 $680675 $0 So $68,676 $0 $68,676 $o $0 $0 $68,675 675 $688675 $680675 SO $0
$1,304.825
Constuctlon rind costs at end of riot $76,450 $0 $52 $26,150 $52 00 $52300 $26150 $26,150 $52,300 $26,150 $26,150 $26,150
$26,150 $26,150 $0 $o $496,850
Marketing, sales and closingperiod costs $35 25 $0 $0 $10,350 $5175 $101
350 $100350 $5175 $15,525 SD $50175 $5175 $50175 $51175 $50175 $0 $9$325
TOTAL PROJECTED NSP EXIIENDRURES $918,075 $68675 $52,300 $36,500 $126150 $62,650 $105,175 $31,325 $67,825 $26150 $100000 $1000000
$1006000 $100000 $5175 $o $1,900000
CUMULATIVE PROJECTED NSP EXPENDITURES $918,075 $986750 $ 039,050 $1,075,550 $ 201700 $10264 SO $1 69 25
$1,400 $1,468675 $1�494A25 $1,5 $ 694,825 $1794825 $1,894 25 $1,9000a $ a
ESTIMATED PORTION SPENT ON 2S% SETASIDE• .. - - 5 0
;. _ . ... ; - ,, $7 000
A sirdent number of homes will be acquired, rehabilitated, and sold to meet the required 2596setaside NSP3 expenditure requirement
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Exhibit Be. Additional Requirements
I . GENERAL CONDITIONS
A. General Compliance
Developer agrees to comply with all NSP3 requirements, including those found in the
NSP3 Grant Agreement, the Wall Street Reform and Consumer Protection Act of 2010, the HERA
Act of 2008 and/or the Recovery Act of 2009 (as applicable), and the requirements applicable to
entitlement communities under CDBG regulations. Developer also agrees to comply with all
other applicable Federal, state and local laws, regulations, and policies governing the funds
provided under this contract. Developer further acknowledges its responsibility for adherence
to all applicable terms and conditions of this grant award by sub- recipient entities and
contractors, including obtaining a DUNS number (or updating the existing DUNS record ), and
registering with the Central Contractor Registration . Developer further agrees to use funds
available under this Agreement to supplement rather than supplant funds otherwise available .
Be "Independent Contractor"
Nothing contained in this Agreement is intended to, or shall be construed in any
manner, as creating or establishing the relationship of employer/employee between the parties.
Developer shall at all times remain an "independent contractor" with respect to the services to
be performed under this Agreement. Grantee shall be exempt from payment of all
Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers'
Compensation Insurance, as Developer is an independent contractor.
C. Workers' Compensation
Developer shall provide Workers' Compensation Insurance coverage for all of its
employees involved in the performance of this Agreement.
D . Suspension or Termination
In accordance with 24 CFR 85 .43 or 84.62, Grantee may suspend or terminate this
Agreement if Developer materially fails to comply with any terms of this Agreement, which
include ( but are not limited to) the following :
1 . Failure to comply with any of the statutes, regulations or provisions
referred to herein, or such statutes, regulations, executive orders, and HUD policies or
directives as may become applicable at any time,
2 . Failure, for any reason, of Developer to fulfill in a timely and proper
manner its obligations under this Agreement,
3 . Ineffective or improper use of funds provided under this Agreement; or
12 Page Amended and Re-stated NSP3 Developer Agreement : July 2 , 2013
4 . Submission by Developer to Grantee of reports that are incorrect or
incomplete in any material respect.
This Agreement may also be terminated for convenience by mutual agreement between
Grantee and Developer, in whole or in part, , by setting forth the reasons for such termination,
the effective date, and, in the case of partial termination, the portion to be terminated . If, in the
case of a partial termination, Grantee determines that the remaining portion of the award will
not accomplish the purpose for which the award was made, Grantee may terminate the award
in its entirety. Such a termination shall be carried out only with the explicit written approval
from HUD .
E . Insurance and Bonding
1 . In General . Developer, at his sole expense, shall purchase and maintain in full force
and effect during the term of this Agreement and any renewals thereafter, policies of insurance
as provided in this section naming Grantee as co-insured on all such policies. Developer shall
furnish to Grantee binders or policies showing the insurance in force as the time of
commencement of the present term .
2 .Commercial General Liability and Commercial Automobile Insurance . Developer shall
purchase and maintain in full force general liability insurance in an amount of not less than
$ 1,000,000 .00 per occurrence for injuries or death to persons and $ 100,000.00 per occurrence
for damage to property. This insurance shall be written with an acceptable company authorized
and licensed to do business in the State of Florida and shall be written in a form acceptable to
Grantee . Said insurance shall be taken out prior to beginning any operation and shall be kept in
effect until all operations have been successfully terminated . Copies, or the originals as the case
may be, shall be furnished to Grantee and shall be approved by Grantee before Developer
begins performance under this agreement . Developer shall designate Grantee as an additional
insured on all such policies, and such policies shall provide for thirty (30) days written notice of
cancellation to the Grantee . Further, Developer shall provide Grantee with an additional
insured endorsement page from each policy in a form acceptable to Grantee . Grantee reserves
the right to approve or reject any deductible amounts in the required coverage . Developer shall
provide at least ten ( 10) days prior notice to Grantee before any termination or reduction in
coverage . Liability insurance may be obtained through a separate policy or through the required
policies described in subsection (c) below.
3 . Property/Casualty and Builder' s Risk Insurance . Prior to taking title to any NSP3-
assisted property, Developer will obtain a property and casualty or builder' s risk insurance policy
that insures the property for losses up to the amount of estimated replacement costs, which
may not be less than the estimated amount of investment in the property as described in the
Project Budget . If the Project Budget is increased, the amount of coverage must be increased
accordingly. If Developer cannot obtain insurance coverage in the total amount of investment in
the property after making best efforts, Grantee at its sole discretion may give written approval
of a lesser amount of coverage . Developer shall designate Grantee an additional insured on all
such policies and such policies shall provide for thirty ( 30) days written notice of cancellation to
Grantee . Further, Developer shall provide Grantee with an additional insured endorsement
page from each policy in a form acceptable to Grantee . Grantee reserves the right to approve or
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reject any deductible amounts in the required coverage, Developer shall provide at least ten
( 10) days prior notice to the Grantee before any termination or reduction in coverage .
4. Workers' Compensation Insurance : Developer shall carry Worker's
Compensation Insurance in accordance with requirements listed in Florida Statutes.
5 . Developer alone shall be responsible for investigation and payment of claims not
covered by insurance . Grantee shall not in any way be responsible for payment of any claims
determined to be Developer's responsibility under this Agreement.
II . ADMINISTRATIVE REQUIREMENTS
A. Financial Management
1 . Accounting Standards
Developer is not subject to the provisions of 24 CFR Part 84 and 24 CFR Part 85,
which apply only to governmental entities and nonprofit subrecipients carrying out
NSP3 programs . Under this agreement, Developer is not a subrecipient, regardless of
whether Developer is a nonprofit or for-profit entity. Developer will use adequate
internal controls, and maintain necessary source documentation for all costs incurred
and adhere to any other accounting requirements included in this Agreement or the
Program Manual .
2 . Cost Principles
OMB Circulars A-87, "Cost Principles for State, Local and Indian Tribal
Governments," A422, "Cost Principles for Non- Profit Organizations," and A-21, "Cost
Principles for Educational Institutions," do not apply to this developer agreement .
Be Documentation and Record Keeping
1 . Client Data
The Developer shall maintain client data demonstrating client eligibility for
services provided . Such data shall include, but not be limited to, client name, address,
income level or other basis for determining eligibility, and description of service or
benefit provided . Such information shall be made available upon request to Grantee
monitors or their designees for review.
2 . Records to be Maintained
Developer shall maintain all records required by Federal regulations specified in
24 CFR 570. 506 . Such records shall include but not be limited to :
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a . Records providing a full description of each activity undertaken;
b. Records demonstrating that each activity undertaken benefits low-,
moderate-, or middle-income persons .
c. Records required to determine the eligibility of activities and the eligibility of
all properties assisted,
d . Records required to document the purchase and sale amounts of each
property, discounts, and the sources and uses of funds for each activity;
e . Records documenting compliance with the fair housing and equal opportunity
requirements of the NSP3 program, including but not limited to the racial, ethnic, and
gender characteristics of persons who are applicants for, participants in, or beneficiaries
of the program;
f. Records documenting efforts to ensure that the initial successor in interest in
a foreclosed upon dwelling or residential real property has complied with the tenant
protection requirements.
g. Financial records, and
h . Other records necessary to document compliance with Subpart K of 24 CFR
Part 570 .
3 . Retention
Developer shall retain all financial records, supporting documents, statistical
records, and all other records pertinent to the Agreement for a period of five (5 ) years.
The retention period begins on the date that Grantee submits its first quarterly
performance report to HUD via DRGR . Notwithstanding the above, if there is litigation,
claims, audits, negotiations or other actions that involve any of the records cited and
that have started before the expiration of the five-year period, then such records must
be retained until completion of the actions and resolution of all issues, or the expiration
of the five-year period, whichever occurs later.
4 . Disclosure
Developer understands that client information collected under this contract is
private and the use or disclosure of such information, when not directly connected with
the administration of Grantee' s or Developer' s responsibilities with respect to services
provided under this contract, is prohibited by law unless written consent is obtained
from such person receiving service and, in the case of a minor, that of a responsible
parent/guardian .
5 . Close-outs
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Developer' s obligation to Grantee shall not end until the US Department of
Housing and Urban Development completes all close-out requirements for the NSP3
grant . Activities during this close-out period shall include, but are not limited to : making
final payments; disposing of program assets ( including the return of all unused
materials, equipment, unspent cash advances, and accounts receivable to the Grantee)
and determining the custodianship of records. The terms of this Agreement, however,
shall remain in effect during any period that Developer has control over NSP3 funds,
including program income .
6 . Audits & Inspections
All Developer records with respect to any matters covered by this Agreement
shall be made available to Grantee, Grantee agency, HUD, and the Comptroller General
of the United States or any of their authorized representatives, at any time during
normal business hours, as often as deemed necessary, to audit, examine, and make
excerpts or transcripts of all relevant data . Any deficiencies noted in audit reports must
be fully cleared by Developer within 30 days after receipt by Developer. Failure of
Developer to comply with the above audit requirements will constitute a violation of
this contract and may result in the withholding of future payments or termination of this
agreement .
C. Reporting and Payment Procedures
1 . Indirect Costs
Direct and indirect costs of staff cannot be charged by Developer. Developer will
be reimbursed for internal costs through a developer fee as specified in this Agreement.
2 . Payment Procedures
Grantee will pay to Developer funds available under this Agreement based upon
information submitted by Developer and consistent with any approved budget and
Grantee policy concerning payments. Payments will be made for eligible NSP3 related
expenses actually incurred by Developer, and will not exceed actual cash requirements.
Payments will be adjusted by Grantee in accordance with advance fund and program
income balances available in Developer accounts. In addition, Grantee reserves the right
to liquidate funds available under this contract for costs incurred by Grantee on behalf
of Developer.
HUD, through the Disaster Recovery Grant Reporting ( DRGR) system, generally
provides access to grant funds within 3 working days of an electronically submitted
request by Grantee . To ensure expeditious implementation of activities, Grantee agrees
to draw funds from the line of credit and make payment to Developer within 10 working
days of receipt of Developer' s complete and properly submitted requests for payment
for activities under this agreement, if feasible . Developer agrees to submit requests for
payment in a timely manner in the form and at the times directed by Grantee .
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3 . Progress Reports
Developer shall submit regular Progress Reports to the Grantee in the form,
content, and frequency as required by the Grantee .
D . Procurement
1 . Compliance
Developer shall maintain inventory records of all non-expendable personal
property as may be procured with funds provided herein . All program assets
( unexpended program income, property, etc. ) not otherwise disposed of in the closeout
agreement shall revert to Grantee upon termination of this Agreement.
2 . Procurement Process
Developer is not subject to Part 85 or Part 84 of Title 24 of the Code of Federal
Regulations and is not required to competitively procure materials, property, or
services . With respect to selecting contractors, however, Developer, shall ensure that:
• All estimated costs are eligible, reasonable and necessary
• The contractor has the needed capacity and expertise
• The contractor is not federally debarred
E . Use of and Reversion of Assets
The use and disposition of real property and equipment under this Agreement shall be
in compliance with the requirements of 24 CFR Part 84 [or Part 85] and 24 CFR 570. 503,
570. 504, and 570 . 505, as applicable, which include but are not limited to the following:
1 . Developer shall transfer to Grantee any NSP3 funds on hand and any
accounts receivable that are attributable to the use of funds under this Agreement at
the time of expiration, cancellation, or termination, unless otherwise specified in the
HUD closeout agreement with Grantee .
2 . Real property under the Developer's control that was acquired or
improved, in whole or in part, with funds under this Agreement shall be used in
accordance with this Agreement If Developer fails to use NSP3-assisted real property in
a manner that meets NSP3 affordability and benefit requirements within and for the
prescribed period of time, Developer shall comply with the applicable sections under 24
CFR 570. 503, 570. 504, and 570 . 505 .
III . RELOCATION , REAL PROPERTY ACQUISITION AND ONE- FOR-ONE
HOUSING REPLACEMENT
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Developer agrees to comply with ( a ) the Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970, as amended ( URA), and implementing regulations at 49 CFR Part 24, 24 CFR Part 42
— Displacement, Relocation Assistance and Real Property Acquisition for HUD and , HUD Assisted
Programs; and 24 CFR 570.606 — Displacement, relocation acquisition, and replacement of housing.
Developer shall provide appropriate relocation assistance ( URA or section 104( d )) to eligible displaced
persons as defined by applicable HUD and/or URA regulations who are displaced as a direct result of
acquisition, rehabilitation, demolition or conversion for an NSP3-assisted project. Developer also agrees
to comply with applicable Grantee or local ordinances, resolutions and policies concerning the
displacement of persons.
Developer will not use NSP3 funds to demolish major structures or convert units from non-residential
uses.
IV. TENANT PROTECTION REQUIREMENTS
Developer agrees to comply with the Recovery Act provisions concerning tenant protections applicable
to NSP3 acquisitions of foreclosed property. Developer must document its efforts to ensure that the
initial successor in interest ( ISII ) in a foreclosed upon dwelling or residential real property (typically, the
ISII in property acquired through foreclosure is the lender or trustee for holders of obligations secured
by mortgage liens) has provided bona fide tenants with the notice and other protections outlined in the
Recovery Act . Developer will not use NSP3 funds to finance the acquisition of property from any ISII that
failed to comply with applicable requirements unless Developer assumes the obligations of such ISII with
respect to bona fide tenants . If Developer elects to assume such obligations, it may do so only if the
tenant is still occupying the property and will provide any tenant displaced as a result of the NSP3
funded acquisition with the assistance outlined in 24 CFR 570.606 . If Developer knows that the ISII did
not comply with the NSP3 tenant protection requirements and vacated the property contrary to the
NSP3 requirements, NSP3 funds cannot be used to acquire such properties.
V. PERSONNEL & PARTICIPANT CONDITIONS
A. Civil Rights
1 . Compliance
Developer agrees to comply with applicable state and local civil rights
ordinances and with Title VI of the Civil Rights Act of 1964 as amended, Title VIII of the
Civil Rights Act of 1968 as amended, section 104( b ) and section 109 of Title I of the
Housing and Community Development Act of 1974 as amended (the HCDA), section 504
of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age
Discrimination Act of 1975, Executive Order 11063, and Executive Order 11246 as
amended by Executive Orders 11375, 11478, 12107 and 12086.
2 . Nondiscrimination
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Developer agrees to comply with the non-discrimination in employment and
contracting opportunities laws, regulations, and executive orders referenced in 24 CFR
570. 607, as revised by Executive Order 13279 . The applicable non -discrimination
provisions in section 109 of the HCDA are still applicable .
3 . Section 504
Developer agrees to comply with all Federal regulations issued pursuant to
section 504 of the Rehabilitation Act of 1973 ( 29 U .S .C . 794), which prohibits
discrimination against individuals with disabilities or handicaps in any Federally assisted
program . Grantee shall provide Developer with any guidelines necessary for compliance
with that portion of the regulations in force during the term of this Agreement.
Be Affirmative Action
1 . Presidential Executive Order 11246 of September 24, 1966
Developer agrees that it shall be committed to comply with Affirmative Action
requirements of the President' s Executive Order 11246 of September 24, 1966 (as
applicable ) .
The following provisions of Executive Order 11246 "a" and "b" are applicable to all
contracts and subcontracts; provisions "c" through "g" are applicable to all non-exempt
construction contracts and subcontracts which exceed $ 10,000;
During the performance of this contract, Developer agrees as follows :
a . Developer shall not discriminate against any applicant for purchase of housing
units or applicant for employment because of race, color, creed, religion, sex, age,
handicap, disability, ancestry, national origin, marital status, familial status, or any other
basis prohibited by applicable law . DEVELOPER shall take affirmative action to ensure
that applicants who are employed are treated during employment without regard to
their race, color, creed, religion, sex, age, handicap, disability, ancestry, or national
origin . Such action shall include, but not be limited to the following : employment,
upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or
termination, rates of pay or other forms of compensation, and selection for training,
including apprenticeship . DEVELOPER agrees to post in conspicuous places, available to
employees and applicants for employment, notices to be provided setting forth the
provisions of his nondiscrimination clause .
b. Developer will, in all solicitations or advertisement for applicants. to qualify for
purchase of housing units, or employees placed by or on behalf of DEVELOPER, state
that all qualified applicants will receive consideration for qualification or employment
without regard to race, color, creed , religion, sex, age, handicap, disability, ancestry,
national origin, marital status, or any other basis prohibited by applicable law.
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c . Developer will send to each labor union or representative or workers with which
it has a collective bargaining agreement or other contract or understanding, a notice to
be provided advising the said labor union or workers representatives of Developer
commitments under this section, and shall post copies of the notice in conspicuous
places available to employees and applicants for employment.
d . Developer will comply with all provisions of Executive Order 11246, Equal
Employment Opportunity, of September 24, 1965, as amended by Executive Orders
11375 and 12086, copies of which are on file and available at County, and of the rules,
regulations, and relevant orders of the Secretary of Labor.
e . Developer will furnish all information and reports required by Executive Order
11246 of September 24, 1965, as amended, and by rules, regulations, and orders of the
Secretary of Labor, or pursuant thereto, and will permit access to its books, records, and
accounts by HUD and the Secretary of Labor for purposes of investigation to ascertain
compliance with such rules, regulations, and orders .
f. In the event of Developer's noncompliance with the nondiscrimination clauses
of this contract or with any of the said rules, regulations, or orders, this contract may be
canceled, terminated, or suspended in whole or in part, and Developer may be declared
ineligible for further Government contracts or federally assisted construction contracts
in accordance with procedures authorized in Executive Order 11246 of September,
1965, as amended, and such other sanctions may be imposed and remedies invoked as
provided in Executive Order 11246 of September 24, 1965, as amended, or as otherwise
provided by law.
g. Developer will include the portion of the sentence immediately preceding
paragraph (a ) and the provisions of paragraphs ( a ) through (g) in every subcontract or
purchase order unless exempted by rules, regulations, or orders of the Secretary of
Labor, issued pursuant to Section 204 of Executive Order 11246 of September 24, 19650
as amended, so that such provisions will be binding upon each subcontractor or vendor.
Developer will take such action with respect to any subcontract or purchase order as
HUD may direct as a means of enforcing such provisions, including sanctions for
noncompliance; provided, however, that in the event a Developer becomes involved in,
or is threatened with, litigation withy a subcontractor or vendor as a result of such
direction by HUD, Developer may request the United States to enter into such litigation
to protect the interests of the United States.
2 . Women- and Minority-Owned Businesses (W/MBE)
Developer will use its best efforts to afford small businesses, minority business
enterprises, and women' s business enterprises the maximum practicable opportunity to
participate in the performance of this contract . As used in this contract, the terms "small
business" means a business that meets the criteria set forth in section 3( a ) of the Small
Business Act, as amended ( 15 U .S.C. 632 ), and "minority and women's business
enterprise" means a business at least fifty-one (51) percent owned and controlled by
minority group members or women . Developer may rely on written representations by
20 ( Page Amended and Re-stated NSP3 Developer Agreement: July 2 , 2013
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businesses regarding their status as minority and women-owned business enterprises in
lieu of an independent investigation .
3 . Access to Records
Developer shall furnish and cause each of its own Developers or subcontractors
to furnish all information and reports required hereunder and will permit access to its
books, records and accounts by Grantee, HUD or its agent, or other authorized Federal
officials for purposes of investigation to ascertain compliance with the rules, regulations
and provisions stated herein .
4. Equal Emnlovment Opportunity and Affirmative Action ( EEO/AA) Statement
Developer will, in all solicitations or advertisements for employees placed by or
on behalf of Developer, state that it is an Equal Opportunity or Affirmative Action
employer.
5 . Subcontract Provisions
Developer will include the provisions of Paragraphs V.A, Civil Rights, and V. B,
Affirmative Action, in every subcontract or purchase order, specifically or by reference,
so that such provisions will be binding upon each of its own Developers or
subcontractors .
C. Employment Restrictions
1 . Prohibited Activity
Developer is prohibited from using funds provided herein or personnel
employed in the administration of the program for: political activities, inherently
religious activities; lobbying, political patronage; and nepotism activities .
2 . Labor Standards
Developer agrees to comply with the requirements of the Secretary of Labor in
accordance with the Davis- Bacon Act, as amended, the provisions of Contract Work
Hours and Safety Standards Act (40 U .S.C. 327 et seq . ) and all other applicable Federal,
state and local laws and regulations pertaining to labor standards insofar as those acts
apply to the performance of this Agreement. Developer agrees to comply with the
Copeland Anti- Kick Back Act ( 18 U .S. C . 874 et seq . ) and its implementing regulations of
the U .S. Department of Labor at 29 CFR Part S . Developer shall maintain documentation
that demonstrates compliance with hour and wage requirements of this part . Such
documentation shall be made available to Grantee for review upon request.
Developer agrees that, except with respect to the rehabilitation or construction
of residential property containing fewer than eight (8 ) units, all contractors engaged
under contracts in excess of $2,000 .00 for construction, renovation or repair work
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financed in whole or in part with assistance provided under this contract, shall comply
with Federal requirements adopted by Grantee pertaining to such contracts and with
the applicable requirements of the regulations of the Department of Labor, under 29
CFR Parts 1, 30 5 and 7 governing the payment of wages and ratio of apprentices and
trainees to journey workers; provided that, if wage rates higher than those required
under the regulations are imposed by state or local law, nothing hereunder is intended
to relieve Developer of its obligation, if any, to require payment of the higher wage .
Developer shall cause or require to be inserted in full, in all such contracts subject to
such regulations, provisions meeting the requirements of this paragraph .
3 . "Section 3" Clause
a. Compliance
Compliance with the provisions of Section 3 of the Housing and Urban
Development Act of 1968, as amended, and as implemented by the regulations set
forth in 24 CFR 135, and all applicable rules and orders issued hereunder prior to the
execution of this contract, shall be a condition of the Federal financial assistance
provided under this contract and binding upon Grantee, Developer and any of
Developer' s grantees and subcontractors. Failure to fulfill these requirements shall
subject Grantee, Developer and any of Developer's grantees and subcontractors, their
successors and assigns, to those sanctions specified by the Agreement through which
Federal assistance is provided . Developer certifies and agrees that no contractual or
other disability exists that would prevent compliance with these requirements .
Developer further agrees to comply with the Section 3 requirements and to
include the following language in all subcontracts executed under this Agreement:
"The work to be performed under this Agreement is a project assisted under a
program providing direct Federal financial assistance from HUD and is subject to the
requirements of Section 3 of the Housing and Urban Development Act of 1968, as
amended ( 12 U .S .C . 1701 ) . Section 3 requires that to the greatest extent feasible
opportunities for training and employment be given to low- and very low-income
residents of the project area, and that contracts for work in connection with the
project be awarded to business concerns that provide economic opportunities for low-
and very low- income persons residing in the metropolitan area in which the project is
located ."
Developer further agrees to ensure that opportunities for training and
employment arising in connection with a housing rehabilitation ( including reduction
and abatement of lead-based paint hazards), housing construction, or other public
construction project are given to low- and very low-income persons residing within the
metropolitan area in which the NSP34unded project is located, where feasible, priority
should be given to low- and very low-income persons within the service area of the
project or the neighborhood in which the project is located, and to low- and very low-
income participants in other HUD programs; and award contracts for work undertaken
in connection with a housing rehabilitation ( including reduction and abatement of lead-
based paint hazards), housing construction, or other public construction project to
22 Page Amended and Re- stated NSP3 Developer Agreement : July 2 , 2013
business concerns that provide economic opportunities for low- and very low-income
persons residing within the metropolitan area in which the NSP3-funded project is
located; where feasible, priority should be given to business concerns that provide
economic opportunities to low- and very low-income residents within the service area
or the neighborhood in which the project is located , and to low- and very low- income
participants in other HUD programs.
Developer certifies and agrees that no contractual or other legal incapacity
exists that would prevent compliance with these requirements.
b. Notifications
Developer agrees to send to each labor organization or representative of
workers with which it has a collective bargaining agreement or other contract or
understanding, if any, a notice advising said labor organization or worker' s
representative of its commitments under this Section 3 clause and shall post copies of
the notice in conspicuous places available to employees and applicants for
employment or training.
c. Subcontracts
Developer will include this Section 3 clause in every subcontract and will take
appropriate action pursuant to the subcontract upon a finding that the subcontractor is
in violation of regulations issued by Grantee' s agency. Developer will not subcontract
with any entity where Developer has notice or knowledge that the entity has been
found in violation of regulations under 24 CFR Part 13S and will not let any subcontract
unless the entity has first provided it with a preliminary statement of ability to comply
with the requirements of these regulations .
D . Conduct
1 . Assignability
Developer shall not assign or transfer any interest in this Agreement without the
prior written consent of Grantee thereto and HUD; provided, however, that claims for
money due or to become due to Developer from Grantee under this contract may be
assigned to a bank, trust company, or other financial institution without such approval .
Notice of any such assignment or transfer shall be furnished promptly to Grantee .
2 . Subcontracts
a. Approvals
Developer shall not enter into any subcontracts over $ 100,000 with any agency or
individual in the performance of this contract without the written consent of
Grantee prior to the execution of such agreement.
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b. Monitoring
Developer will monitor all subcontracted services on a regular basis to assure
contract compliance . Results of monitoring efforts shall be summarized in written
reports and supported with documented evidence of follow-up actions taken to
correct areas of noncompliance .
c. Content
Developer shall cause all of the provisions of this contract in its entirety to be
included in and made a part of any subcontract executed in the performance of this
Agreement.
d. Selection Process
Although Developer is not subject to Part 85 or Part 84 of Title 24 of the Code of
Federal Regulations and is not required to competitively procure materials,
property, or services. With respect to selecting contractors/subcontractors
Developer, shall ensure that :
o All estimated costs .are eligible, reasonable and necessary
o The contractor/subcontractor has the needed capacity and expertise
o The contractor/subcontractor is not federally debarred
Executed copies of all subcontracts shall be forwarded to Grantee .
3 . Hatch Act
Developer agrees that no funds provided, nor personnel employed under this
. Agreement, shall be in any way or to any extent engaged in the conduct of political
activities in violation of Chapter 15 of Title V of the United States Code .
4. Conflict of Interest
Developer agrees to abide by the provisions of 24 CFR 84.42 and 570.611, which
include ( but are not limited to ) the following :
a . Developer shall maintain a written code or standards of conduct that shall govern
the performance of its officers, employees or agents engaged in the award and
administration of contracts supported by Federal funds .
b . No employee, officer or agent of Developer shall participate in the selection, or in
the award, or administration of, a contract supported by Federal funds if a conflict
of interest, real or apparent, would be involved .
c. No covered persons who exercise or have exercised any functions or
responsibilities with respect to NSP3-assisted activities, or who are in a position to
participate in a decision- making process or gain inside information with regard to
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such activities, may obtain a financial interest in any contract, or have a financial
interest in any contract, subcontract, or agreement with respect to the NSP3 -
assisted activity, or with respect to the proceeds from the NSP3-assisted activity,
either for themselves or those with whom they have business or immediate family
ties, during their tenure or for a period of one ( 1 ) year thereafter. For purposes of
this paragraph, a "covered person" includes any person who is an employee, agent,
consultant, officer, or elected or appointed official of Grantee, Developer, or any
designated public agency.
S . Lobbvine
Developer hereby certifies that :
a . No Federal appropriated funds have been paid or will be paid , by or on behalf of
it, to any person for influencing or attempting to influence an officer or employee of
any agency, a Member of Congress, an officer or employee of Congress, or an
employee of a Member of Congress in connection with the awarding of any Federal
contract, the making of any Federal grant, the making of any Federal loan, the
entering into of any cooperative agreement, and the extension, continuation,
renewal, amendment, or modification of any Federal contract, grant, loan, or
cooperative agreement,
b . If any funds other than Federal appropriated funds have been paid or will be paid
to any person for influencing or attempting to influence an officer or employee of
any agency, a Member of Congress, an officer or employee of Congress, or an
employee of a Member of Congress in connection with this Federal contract, grant,
loan, or cooperative agreement, it will complete and submit Standard Form-LLL,
" Disclosure Form to Report Lobbying," in accordance with its instructions, and
c . Developer will require that the language of paragraph (d ) of this certification be
included in the award documents for all subawards at all tiers ( including
subcontracts, subgrants, and contracts under grants, loans, and cooperative
agreements) and that all Developers shall certify and disclose accordingly :
d . Lobbying Certification
This certification is a material representation of fact upon which reliance was placed
when this transaction was made or entered into . Submission of this certification is a
prerequisite for making or entering into this transaction imposed by section 1352,
title 31, U .S.C . Any person who fails to file the required certification shall be subject
to a civil penalty of not less than $ 10,000 and not more than $ 100,000 for each such
failure .
6 . Copyright
If this contract results in any copyrightable material or inventions, HUD reserves
the right to a royalty-free, non-exclusive and irrevocable license to reproduce, publish or
25 Page Amended and Re-stated NSP3 Developer Agreement : July 2 , 2013
otherwise use and to authorize others to use, the work or materials for governmental
purposes .
7 . Religious Activities
Developer agrees that it will comply with 24 CFR 570. 200(j ) so that funds are not
used to support inherently religious activities.
VI . ENVIRONMENTAL CONDITIONS
A. Air and Water
Developer agrees to comply with the following requirements insofar as they apply to the
performance of this Agreement:
1 . Clean Air Act, 42 U .S .C. , 7401, et seq .;
2 . Federal Water Pollution Control Act, as amended, 33 U .S . C ., 1251, et seq ., as
amended, 1318 relating to inspection, monitoring, entry , reports, and information, as well as
other requirements specified in said Section 114 and Section 308, and all regulations and
guidelines issued thereunder;
3 . Environmental Protection Agency ( EPA) regulations pursuant to 40 CFR Part 50, as
amended .
Be Flood Disaster Protection
In accordance with the requirements of the Flood Disaster Protection Act of 1973 (42
U .S.C. 4001 ), Developer shall assure that, for activities located in an area identified by the
Federal Emergency Management Agency ( FEMA) as having special flood hazards, flood
insurance under the National Flood Insurance Program is obtained and maintained as a
condition of financial assistance for acquisition or construction purposes ( including
rehabilitation ) .
C. lead- Based Paint
Developer agrees that any construction or rehabilitation of residential structures with
assistance provided under this Agreement shall be subject to HUD Lead-Based Paint Regulations
at 24 CFR 570 .487 or 24 CFR 570.608, and 24 CFR Part 35, Subpart B . Such regulations pertain to
all NSP3-assisted housing and require that all owners, prospective owners, and tenants of
properties constructed prior to 1978 be properly notified that such properties may include lead-
based paint. Such notification shall point out the hazards of lead-based paint and explain the
symptoms, treatment and precautions that should be taken when dealing with lead- based paint
poisoning and the advisability and availability of blood lead level screening for children under
26 ( Page Amended and Re-stated NSP3 Developer Agreement : July 2 , 2013
seven . The notice should also point out that if lead-based paint is found on the property,
abatement measures may be undertaken . The regulations further require that, depending on
the amount of Federal funds applied to a property, paint testing, risk assessment, treatment
and/or abatement may be conducted .
D . Historic Preservation
Developer agrees to comply with the Historic Preservation requirements set forth in the
National Historic Preservation Act of 1966, as amended ( 16 U .S.C. 470) and the procedures set
forth in 36 CFR Part 800, Advisory Council on Historic Preservation Procedures for Protection of
Historic Properties, insofar as they apply to the performance of this agreement.
In general, this requires concurrence from the State Historic Preservation Officer for all
rehabilitation and demolition of historic properties that are fifty years old or older or that are
included on a Federal, state, or local historic property list.
VII . ENVIRONMENTAL REVIEW
All NSP3 assistance is subject to the National Environmental Policy Act of 1969 and related federal
environmental authorities and regulations at 24 CFR part 50 or 58 .
VIII , REHABILITATION STANDARDS
Residential structures purchased under this program that are not deemed beyond feasible repair (repairs
exceeding 50% of the value of the structure) will be rehabilitated as needed to meet the following:
1 . HUD Section 8 Housing Quality Standards (24CFR982 .401 )
2 . Local Zoning Requirements
3 . State of Florida Building Code
4. The local building code
5 . Modern, Green Building and Energy-Efficiency Criteria
6 . Florida Energy Efficiency Code for Building Construction (Newly Constructed
Housing Units)
7 . Accessibility requirements of 24 CFR Part 8 , 24 CFR 100 . 201 , and
24 CFR 100 .205 as applicable .
IX . ELIGIBILITY AND ALLOWABLE COSTS .
Developer will ensure and document that its NSP3 activities meet eligible use, allowable cost, and
eligible activity requirements of NSP3 .
X. PURCHASE DISCOUNT
27 Page Amended and Re-stated NSP3 Developer Agreement : July 2 , 2013
Developer will acquire property with NSP3 funds at a minimum discount of one percent for each
foreclosed residential property. This requirement applies to all properties purchased with NSP3 funds,
and the discount must be taken. from the current market appraised value .
XI . EMINENT DOMAIN
Developer will not undertake any involuntary acquisition of property with NSP3 funds without prior
written consent of the Grantee and written opinion of counsel that such acquisition is lawful .
XII . SEVERABILITY
If any provision of this Agreement is held invalid, the remainder of the Agreement shall not be affected
thereby, and all other parts of this Agreement shall nevertheless be in full force and effect .
XIII . SECTION HEADINGS AND SUBHEADINGS
The section headings and subheadings contained in this Agreement are included for convenience only
and shall not limit or otherwise affect the terms of this Agreement .
XIV , WAIVER
Grantee' s failure to act with respect to a breach by Developer does not waive its right to act with
respect to subsequent or similar breaches . The failure of Grantee to exercise or enforce any right or
provision shall not constitute a waiver of such right or provision .
F:\Community Development\CD8G\2010 NSP\CONTRACTS\Developer Agreement\AMENDMENT #1\Habitat for Humanity NSP3 Agreement
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Amended and Re-stated V2.doc
28 Page Amended and Re-stated NSP3 Developer Agreement : July 2 , 2013
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29 Page Amended and Re-stated NSP3 Developer Agreement : July 2 , 2013