GUADALUPE CDC AMENDMENT 4.PDF

Contract No. C-22-21-061-X-04 Amendment No. 4
AMENDMENT NO. 4 TO THE
DEVELOPER AGREEMENT
BETWEEN
MARICOPA COUNTY
ADMINISTERED BY ITS
HUMAN SERVICES DEPARTMENT
AND
GUADALUPE COMMUNITY DEVELOPMENT CORPORATION
I. Maricopa County (“County”) administered by its Human Services Department and the
Guadalupe Community Development Corporation (GCDC) (“Developer”) entered into a
financial Developer Agreement (“Agreement”) on or about November 23, 2020. The
purpose of the Agreement is for the Developer to develop a single-family, affordable home
for sale to a low-income household in Guadalupe. The County provided the Developer
with $260,000 in 2020 HOME Investment Partnerships Program (HOME) funds from the
U.S. Department of Housing and Urban Development (HUD). The Agreement term is
November 18, 2020, through August 31, 2024.
The Parties fully executed Amendment No. 1 on October 6, 2021. The Amendment
extended the Agreement termination date from August 31, 2024, through September 30,
2025. The Amendment also added required language to Section 1 General Provisions.
The County provided the Developer with an additional $250,000 in PY2021 HOME funds
for a new 2021 Work Statement for the development of a single-family, affordable home.
The Agreement funding amount increased from $260,000 to $510,000.
The Parties fully executed Amendment No. 2 on or about February 9, 2022. The
Amendment added required language to Section 1 General Provisions as well as
additional Section 2 Special Provisions. The Amendment also revised Section 3 (Work
Statement) Paragraph 2.0 (Scope of Work) by deleting Subparagraph 2.1 and replacing
with a new Project Description located at 8234 S Calle Batoua, Guadalupe, Arizona
85283, as well as removing and replacing Paragraph 5.0 Performance Reporting
Goals/Timeline of Activities with a new paragraph 5.0.
The Parties fully executed Amendment No. 3 on or about December 7, 2022. The
Amendment added Point of Contact for Maricopa County and also added required
language to Section 1 General Provisions, to add the UYGHUR FORCED LABOR
PREVENTION ACT (UFLPA) clause. The Amendment added an additional Work
Statement, “2022 Work Statement” to construct six single family homes located at 5604
E. Calle Mexico & 5603 E. Calle Iglesia in Guadalupe, Arizona 85283 (lots will be provided
6 new addresses when construction starts). The Amendment funding amount is
$1,583,595.97. The County shall provide the Developer with $543,595.97 (EN $500,000;
PI $43,595.97) in PY 2022 HOME Investment Partnerships Program (HOME) (HUD) funds
under ALN 14.239 and $1,040,000 in ARPA funds under ALN 21.027. Total funding for
the Agreement was increased from $510,000 to $1,053,595.97 in HOME HUD funds and
$1,040,000 ARPA funds for a new Agreement total of $2,093,595.97.
II. The Parties now therefore agree to enter into this Amendment No. 4 to amend the
Agreement as follows:
A. Revise Section 1 (General Provisions) to add the following paragraph:
57.0 PROVISIONS REQUIRED BY LAW
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Contract No. C-22-21-061-X-04 Amendment No. 4
Each and every provision of law and any clause required by law to be in this
Agreement will be read and enforced as though it were included herein and,
if through mistake or otherwise, any such provision is not inserted, or is not
correctly inserted, then upon the application of either party, this Agreement
will promptly be physically amended to make such insertion or correction.
B. Revise Section 3 (Work Statement) to add the following:
1. Add an additional Work Statement hereinafter referred to as “2023 Work
Statement”, attached and incorporated into the Agreement. Through this PY
2023 Work Statement the Developer shall construct a new 3- or 4- bedroom
home, featuring 1 and 3/4 bath, 2-car garage, and have a total living space
of approximately 1,500 square feet, located at 5532 E Calle Encinas,
Guadalupe, AZ 85283. The project will create an affordable home to be sold
to a low-income household.
2. The County shall provide the Developer with $250,000.00 (EN $250,000) in
PY 2023 HOME Investment Partnerships Program (HOME) funds from the
U.S. Department of Housing and Urban Development (HUD) under ALN
14.239. All work performed or costs incurred or expended shall be
reimbursable through September 30, 2025.
C. The Agreement funding amount shall be increased by $250,000, from
$1,053,595.97 to $1,303,595.97 in HOME HUD funds under ALN.239, and
$1,040,000 ARPA funding remains unchanged, for a new Agreement total of
$2,343,595.97.
III. Section II above contains all the changes made by this Amendment No. 4. All other terms
and conditions of the Agreement and previously approved Amendments not amended by
this Amendment No. 4 shall remain unchanged and in full force and effect as executed by
the Parties. This Amendment No. 4 is subject to and incorporates the provisions of A.R.S.
§ 38-511.
IV. The Parties have authorized the undersigned to execute this Amendment No. 4 on their
behalf, and it shall be effective upon approval and signature by the Parties.
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Contract No. C-22-21-061-X-04 Amendment No. 4
IN WITNESS THEREOF, the Parties have signed this Amendment:
APPROVED BY: APPROVED BY:
MARICOPA COUNTY GUADALUPE COMMUNITY DEVELOPMENT
CORPORATION (Developer)
Jack Sellers Date Steve Langstaff Date
Chairman, Board of Supervisors Executive Director
Attested to:
_
Clerk of the Board Date
Approved as to Form:
Deputy County Attorney Date
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Contract No. C-22-21-061-X-04 Amendment No. 4
MARICOPA COUNTY
HOME Investment Partnerships Program
Program Year 2023
2023 Work Statement
Project: Single Family New Construction at 5532 E Calle Encinas, Guadalupe, Az 85283
Type of Property: Single Family Residential
1.0 FUNDING
Maricopa County
Program Income GCDC
TOTAL
HOME Project
BUDGET
PY2021 Proceeds
$250,000 $70,000 $320,000
2.0 SCOPE OF WORK
2.0 Project Description: In-fill housing of single-family, new construction on the
currently vacant lot at 5532 E Calle Encinas, Guadalupe, Arizona, or another
suitable site. The newly constructed home will be a 3- or 4- bedroom, 1 and 3/4
bath, 2-car garage, and have a total living space of approximately 1,500 square
feet. The home will be fully accessible and conserve water, reduce utility demand
and maintenance costs, and foster a healthy living environment.
2.1 Project Purpose: The project will create a homeownership opportunity for a low-
income household, an activity that is rated as a “high” priority in the Consolidated
Plan. The home design is consistent with the Town of Guadalupe’s General Plan
goals for residents to feel a sense of community and be compatible with the
residential character of the neighborhood.
2.2 Project Beneficiary: One first-time homebuyer at or below 80% of the area
median income. Income eligibility will be verified by the Development staff and will
comply with 24 C.F.R §. 92.203(d)(1). The eligible buyers will be required to
complete an approved homebuyer education class and homeownership
counseling. Down payment assistance may be provided to buyers that qualify, up
to $70,000 of the HOME funding award. In addition, other funds (for example, LIFT,
and WISH) may be available to the buyer, based on eligibility. GCDC will assist
the buyer in maximizing their resources.
2.3 GCDC: shall maintain staff qualified to perform the duties of the project. GCDC
shall immediately notify the County regarding any changes in staff committed to
the project. The County reserves the right to review the qualifications of new staff
committed to the project after the execution of this Amendment. The GCDC will be
responsible for all communications with the County, providing all updates and as
needed reporting. In addition, any complaints will be the responsibility of GCDC.
2.4 Subcontractors: GCDC will oversee every aspect of the project. This oversight
includes, but is not limited to, day-to-day operations; preparing budgets; managing
the budget, timeline, and change orders; issuing a Request for Proposal and
selecting the general contractor and sub-contractors. GCDC shall select
subcontractors in accordance with the Administrative Requirements of this
Agreement. GCDC shall contract with responsible and qualified subcontractors to
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Contract No. C-22-21-061-X-04 Amendment No. 4
perform the duties of the project. GCDC shall verify the qualifications of each
subcontractor through license verification, references, and SAM.gov.
2.5 Period of Affordability: Housing assisted under this Amendment will meet the
affordability requirements of 24 C.F.R. 92.254. The buyer must qualify as low-
income, as defined in 24 C.F.R. § 5.609 and 24 C.F.R. § 92.203 and maintain the
housing as the principal residence throughout the period of affordability, which
shall be for a period of not less than the applicable period specified in 24 C.F.R. §
92.254 (5, 10 or 15 of years) beginning after project completion. The loans are
forgiven after 5,10 or 15 years of the affordable period.
2.6 Legal documents: To ensure compliance with 24 C.F.R. § 92.254 of the HOME
regulations, GCDC will record a Deed of Trust with a Recapture Option and a
Forgivable Loan Promissory Note, naming the County as Beneficiary. The Note
will bear zero percent interest and will be in the form of a forgivable loan which will
be forgiven at 100 percent at the end of the Period of Affordability, as long as the
property is maintained as the buyer’s principal residence. No payments are
required other than to pay the loan in full without penalty whenever the buyer
wishes or whenever the homebuyer ceases to occupy the HOME-assisted
property, or the HOME-assisted property is sold or otherwise transferred to another
income qualified family.
3.0 OBJECTIVES AND OUTCOMES:
OUTCOMES
OBJECTIVE AVAILABILITY/
AFFORDABILITY SUSTAINABILITY
ACCESSIBILITY
Single-Family Homebuyer Activities, New
DECENT Housing for Construction of rental housing, Housing Activities in a
HOUSING Homeownership, Expansion of assisted targeted revitalization
Homebuyer Homeownership units in the area
Assistance private marketplace
4.0 LOGIC MODEL: PERFORMANCE INDICATORS
OUTPUTS
INPUTS/ ACTIVITIES PARTICIPATION OUTCOMES OBJECTIVES
RESOURCES
GCDC staff, New One household Increased affordable Decent
funding, private construction housing for a low- affordable
lenders, income family. housing.
contractors Improved
neighborhoods and
quality of life.
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Contract No. C-22-21-061-X-04 Amendment No. 4
5.0 PERFORMANCE REPORTING GOALS/TIMELINE OF ACTIVITIES
COMPLETION
MILESTONES: Tasks to be Performed
DATE
Application/market study 11/2022
Execute Amendment with Maricopa County for HOME funds 1/2024
Development Plan Approved-Town of Guadalupe 2/2024
Environmental Review approval 8/2020
Submit complete application for construction permits 4/2024
RFP for construction activities 5/2024
Homeownership counseling/buyer preparation 8/2024
Construction of project 12/2024
Sale of Unit (Pre-sale and during construction) 12/2024
Execute Homebuyer Recapture Agreement 12/2024
Homebuyer financing secured 12/2024
Final inspection by MCHSD 12/2024
Certificate of Occupancy 11/2024
Final Close-out /Project Completion Form 2/2025
Any change to the Timeline will need to be approved by the County.
6.0 SCHEDULE FOR PAYMENT OF DEVELOPMENT FEES:
PERCENTAGE OF
MILESTONES DEVELOPMENT FEE
ALLOWED
Acquisition of site/Homebuyer’s selected and approved 25%
Construction commencement 25%
Certificate of Occupancy 25%
Permanent closing/sale to homebuyer 25%
7.0 ACTIVITY BUDGET SUMMARY:
MARICOPA
COUNTY TOTAL
ACTIVITY PROGRAM PROJECT ACTIVITY
PROCEEDS*
INCOME BUDGET
HOME FUNDS
Acquisition Lot 70,000 70,000
Site Demolition
Development Costs 230,000 230,000
Developer fees 20,000 20,000
Estimated Construction
Contingency**
TOTALS $250,000 70,000 $320,000
*Remaining Project Proceeds from Maricopa County contracts C-22-17-052-3-00 and C-
22-16-029-3-00.
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Contract No. C-22-21-061-X-04 Amendment No. 4
7.1 A total of $2,500 will be withheld as retainage from the total amount of HOME funds
obligated to each activity/address. $1,500 may be reimbursed upon completion of
construction (Certificate of Occupancy) and a signed purchase contract with a
qualified buyer. The final $1,000 will be reimbursed when a completion form is
submitted by GCDC to the County.
8.0 SALES PRICE:
8.1 To ensure the home is affordable for the target income group, the sales price shall
be calculated so that the buyer’s monthly housing expenses (including principal,
interest, property taxes, and home insurance) do not exceed (33% front - 43%
back) of the buyer’s gross monthly household income, unless there are
documented compensating factors. In addition, the housing will have an initial
purchase price that does not exceed the HOME Homeownership Value Limits at
the time of sale, as determined by Maricopa County (95% of the median purchase
price for the area), as described in 24 C.F.R. § 92.254 (a)(2).
8.2 The buyer must obtain a private mortgage loan with a fixed term and interest rate.
The lender fees may not exceed 5% of the mortgage amount. The income of the
buyer shall be determined according to the requirements at 24 C.F.R. § 92.203.
9.0 PROGRAM INCOME
9.1 All proceeds generated from the development activities shall be considered
Program Income and subject to the Program Income requirements set forth in
HOME Program regulations as defined in 24 C.F.R. § 92. Program Income shall
be tracked by the Developer and reported to the County annually and at the
request of the County.
9.2 All Program Income generated from this Amendment shall be used to fund any of
the following activities with prior approval of the County: acquisition of land, new
construction, rehabilitation, homebuyer financial assistance for additional HOME
eligible properties to be sold to qualified low-income families as defined in 24
C.F.R. § 92. The HOME requirements shall continue to apply when the Developer
receives and expends Program Income, even if the Program Income funds are
earned and expended after the expiration of this Amendment.
10.0 DISPOSITION OF SALES PROCEEDS:
A portion of the sales proceeds may be used to provide the eligible buyer with down
payment assistance, including closing costs and principal reduction.
11.0 CONVERSION TO RENTAL:
If the newly constructed home has not been sold to an eligible homebuyer within nine (9)
months after the receipt of a Certificate of Occupancy, then it 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 C.F.R. § 92.254(a)(3). If the vacant
property is not converted, then the HOME funds must be repaid to the County.
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