2017A WORK STATEMENT CITY OF CHANDLER AMEND 1.PDF

MARICOPA COUNTY
HOME Investment Partnerships Program
2017a –Work Statement
Project: Newtown Community Land Trust Acquisition/Resale
Program Year 2017 HOME Funds: $100,652
Type of Property: Single Family Residential
A. DETAILED SCOPE OF WORK:
The City of Chandler will contract with Newtown Community Development Corporation (Newtown CDC),
acting in the capacity of a Community Housing Development Corporation (CHDO) developer to acquire and
rehabilitate a single-family home in Chandler. The project is a scattered-site homeownership project which
target specific zip codes: 85224, 85225, and 85226 to be supplemented by the specific street address. The
Parties shall execute an Addendum, once a property is identified. The Addendum shall identify the individual
property by street address for participation in the Newtown CDC Community Land Trust Program (CLT)
will be executed before funding is made available. Funds will be considered to be committed only after
requirements of the HOME Investment Partnerships Program rules are met under the definition of
commitment which includes: all funding necessary for the project is secured, a budget and schedule are
established, underwriting and subsidy layering is completed, construction is scheduled to begin within twelve
months and the individual address for acquisition is identified.
Funds for rehabilitation are obligated by completing a detailed set of plans and specifications (work write-up)
and completing a detailed construction/rehabilitation cost estimate based upon those specifications. Such
cost estimate may include a contingency for construction change orders of up to 15% for rehabilitation and
up to 5% for new construction. The property must be free from any defects that pose a danger to the health
and safety of occupants, and must meet written rehabilitation standards and local codes and ordinances at
project completion. Copies of final inspection must be retained in the project files and submitted to the
County upon submitting completion report.
The completed home will be sold to an eligible low-income first-time homebuyer. The property will be
acquired with Newtown’s line of credit, following completion of environmental review requirements.
Newtown CDC will execute a Deed of Trust and Note naming the City of Chandler as Beneficiary in order to
secure any funds provided to Newtown CDC as reimbursement for acquisition costs.
Resale provisions will be used to ensure compliance with the period of affordability required by HUD at
92.254 of the HOME regulation. The affordability restrictions will be secured by a Community Land Trust
(CLT) Ground Lease and a Declaration of Affirmative Land Use Restrictions.
The completed unit shall be sold through the Newtown (CLT) program in which the buyer purchases the
improvements only and enters into a 99-year CLT Ground Lease with Newtown CDC. The CLT Ground
Lease contains provisions that require the housing to be used as the buyer’s principal residence and restricts
resale/transfer only to Low-Income buyers. In addition, the CLT Ground Lease has a shared-appreciation
provision that limits the sale price of the housing and helps ensure affordability for future buyers. A
Memorandum of Ground Lease and Right of First Refusal are recorded. A “Performance” Deed of Trust is
also recorded with the Newtown CDC as the beneficiary; this ensures the Newtown CDC is notified in the
event the owner of the improvements attempts to refinance or transfer the property.
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2017a –Work Statement
The shared appreciation provision conforms to Maricopa HOME Consortium Recapture / Resale Provisions:
“Fair Return” for leasehold properties is defined as the lessees purchase price, plus 25% of the lessee’s share
of the increase in leasehold value at time of resale based on a leasehold valuation performed by a duly licensed
appraiser.
Declaration of Affirmative Land Use Restrictions: Upon sale to an eligible buyer, a Declaration of Affirmative
Land Use Restrictive Covenant for HOME Project is executed between the Administrator and Newtown
CDC and recorded against the land to secure the Period of Affordability as required by HUD. The Period of
Affordability is based on the total amount of HOME funds invested in the housing.
Eligible buyers will be required to complete an approved homebuyer education class and homeownership
counseling. Eligible buyers will also be required to complete a Community Land Trust (CLT) orientation, at
which time the ground lease, resale restrictions, shared equity and all other provisions of the CLT program
are fully explained.
Beneficiaries: One (1) first time homebuyer at or below 80% of the area median income level. Newtown CDC
will secure affordability through the Resale Provisions.
The City shall ensure the beneficiaries are income eligible and comply with 24 CFR 92.203(d)(1).
Consolidated Plan – Project will increase the supply of affordable rental units for low and very low income
households. High priority rated in the Consolidated Plan.
B. OBJECTIVES AND OUTCOMES:
OUTCOMES
OBJECTIVE AVAILABILITY/
ACCESSIBILITY AFFORDABILITY SUSTAINABILITY
Homebuyer Activities,
DECENT Acquisition/Rehab of rental housing, Housing Activities in a
HOUSING Single Family Acquisition/New Construction of rental targeted revitalization
Housing Rehab and
Emergency Rehab housing, TBRA, Expansion of assisted area
rental units
C. LOGIC MODEL: PERFORMANCE INDICATORS
The City of Chandler will partner with Newtown CDC to acquire and rehabilitate one home which
will be sold to a low or moderate homeowner using a Community Land Trust Model. The outcome
will be increased affordable housing for low to moderate income families as well as to increase
homeownership, provide decent housing, improve neighborhoods and quality of life.
D. SITE INFORMATION: Scattered sites in Chandler. Parties will execute addenda to this agreement
when specific parcels are identified.
E. PERFORMANCE REPORTING - GOALS:
Project Completion date: September 30, 2021

2017a –Work Statement
F. TIMELINE OF ACTIVITIES
START COMPLETION
MILESTONES: Tasks to be Performed
DATE DATE
Application/market study 11/1//2016 11/21/2016
Site selection 9/15/2017 3/31/2018
Environmental reviews to City of Chandler 9/15/2017 3/31/2018
Homeownership counseling/buyer preparation 6/1/2017 4/30/2018
Acquisition 9/15/2017 3/31/2018
Work write-ups and bid selection 9/15/2017 4/15/2018
Homebuyer financing secured 10/31/2017 4/30/2018
Rehabilitation 9/30/2017 5/31/2018
Resale of properties to homeowners 1/31/2018 5/31/2018
Final Close-out /Project Completion Form 6/30/2018
Any change to the Timeline will need to be approved by the County.
G. ACTIVITY FOLLOW-UP AND LONG TERM COMMITMENT:
The HOME unit will have a period of affordability of 15 years. During this time, the project will be
monitored annually and the unit will be verified annually. The affordability standard is applied to
both the original homebuyer and subsequent purchaser and will be enforced by imposing deed
restrictions, covenants running with the land, or other similar mechanisms.
H. ACTIVITY BUDGET SUMMARY:
ACTIVITY OTHER TOTAL
HOME CASH
RESOURCES ACTIVITY
AMOUNT MATCH
AMOUNT BUDGET
Acquisition (c) 100,652 84,348 185,000
Rehabilitation 55,000 55,000
Relocation
Development Costs (b) 7,500 7,500
Staff Costs (b)
Services (b)
Development Fees 20,600 20,600
Other (LBP, title, appraisal) 2,650 2,650
TOTALS $100,652 $170,098 $270,750
(a) If match will be in the form of cash and will be used in this project only. Do not include non-cash
match in this budget.
(b) These costs must be address specific; otherwise, these costs must be considered administrative
costs.
(c) $2,500 per activity/property will be withheld from the total amount of HOME funds obligated to
each activity/address until a completion form is submitted by Newtown CDC.

2017a –Work Statement
I. ACTIVITY MATCH:
Match commitment must equal 25% of the HOME funds requested. Documentation is due at the
time of request for payment(s). Match Logs must be submitted annually by June 30th of each year.
NEWTOWN FORM OF MATCH
$25,163 IDA Funds
J. SALES PRICE:
To ensure the home is affordable for the target income groups, the sales prices shall be calculated so
that the Buyers' monthly housing expenses are 28% of their gross monthly household income.
Monthly housing expenses include principal, interest, property taxes, home insurance, HOA fees, and
monthly ground lease fees. Buyers' monthly housing expenses must be at least 24% and not exceed
33% of Buyer's gross monthly household income; unless there are documented compensating
factors.
Homebuyers may obtain only mortgage loans with a fixed term and interest rate; lender fees may not
exceed 5% of the mortgage amount.
The income of buyers shall be determined according to the requirements at 92.203. In addition, the
property will have an estimated value after rehabilitation that does not exceed 95 percent of the
median purchase price for the area as described in 24 CFR 92.254(a)(2)(iii).
K. CHDO PROJECT PROCEEDS:
All proceeds generated from CHDO development activities shall be considered project proceeds and
subject to the project proceeds requirements set forth in HOME Program regulations. Project
proceeds shall be tracked by the CHDO. Documentation supporting the amount of project proceeds
received and expended shall be submitted on the periodic progress report, if requested by the
County. Project proceeds shall be retained and expended by the CHDO for acquisition and/or
rehabilitation of additional properties under this agreement.
L. CONVERSION TO RENTAL:
Any HOME homebuyer units that have not been sold to an eligible homebuyer within nine (9)
months of receipt of a Certificate of Occupancy must be converted to a HOME rental unit that
complies with all HOME requirements for the period of affordability applicable to such rental units,
according to 24 CFR 92.254(a)(3). If the vacant property is not converted, HOME funds must be
repaid to the County.
M. AFFORDABILITY REQUIREMENTS:
1. The housing that is acquired with HOME funds must be single family housing. The family or
individual acquiring the housing must qualify as Low Income and maintain the housing as the
principal residence throughout the Period of Affordability, which shall be for a period of 15
years in accordance with HOME program requirements.
2. Resale provisions (Attachment D) will be used to ensure compliance with the period of
affordability required by HUD at 92.254 of the HOME regulation. The affordability restrictions
will be secured by a Community Land Trust (CLT) Ground Lease and a Declaration of
Affirmative Land Use Restrictions and a Deed of Trust.

2017a –Work Statement
a.) CLT Ground Lease. Completed units shall be sold through Newtown’s Community Land
Trust (CLT) program in which the buyer purchases the improvements only and enters into a
99-year CLT Ground Lease with Newtown CDC. The CLT Ground Lease contains
provisions that require the housing to be used as the buyer’s principal residence and restricts
resale to only Low-Income buyers. In addition, the CLT Ground Lease has a shared-
appreciation provision that limits the sale price of the housing and helps ensure affordability
for future buyers. A Memorandum of Ground Lease and Right of First Refusal are
recorded. A “Performance” Deed of Trust is also recorded with Newtown CDC as the
beneficiary; this ensures Newtown CDC is notified in the event the owner of the
improvements attempts to refinance or transfer the property.
b.) Declaration of Affirmative Land Use Restrictions. Upon sale to an eligible buyer, a
Declaration of Affirmative Land Use Restrictions is executed between the Administrator and
Newtown CDC and recorded against the land to secure the Period of Affordability as
required by HUD. The Period of Affordability is based on the total amount of HOME
funds invested in the housing.
c.) Deed of Trust. Upon sale to an eligible buyer, a Deed of Trust is executed between the
Administrator and Newtown CDC and recorded against the land to secure the Period of
Affordability as required by HUD. The Period of Affordability is based on the total
amount of HOME funds invested in the housing.