AMENDMENT 1 RE AFFORDABLE HOUSING WITH AVONDALE AND NEWTOWN COMMUNITY DEVELOPMENT CORPORATION.PDF
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Contract No. C-22-24-095-X-01 Amendment No. 1 AMENDMENT NO. 1 TO THE AGREEMENT BETWEEN MARICOPA COUNTY ADMINISTERED BY ITS HUMAN SERVICES DEPARTMENT AND NEWTOWN COMMUNITY DEVELOPMENT CORPORATION AND CITY OF AVONDALE I. Maricopa County (“County”) administered by its Human Services Department, Newtown Community Development a Community Housing Development Organization (hereinafter referred to as the “CHDO”), and the City of Avondale (hereinafter referred to as the “Administrator”) entered into an Agreement on or about April 16, 2024. The purpose of this Agreement is to provide the CHDO with funding to acquire land from the City of Avondale and construct three (3) single-family homes. The new homes will be included in Newtown’s Community Land Trust Program (CLT) program designated for low- to moderate income households. The County has provided the CHDO and the Administrator with PY23/FY24 U.S. Department of Housing and Urban Development (HUD) HOME Investment Partnerships Program (HOME) funds under ALN 14.239 in the amount of $796,326. The Agreement term is March 27, 2024, through December 31, 2026. The CHDO, the Administrator, and the County are collectively referred to in this Agreement as the “Parties” and individually as a “Party.” II. The Parties agree to enter into this Amendment No. 1 to amend the Agreement as follows: A. Extend the term of the Agreement from December 31, 2026, through December 31, 2027. B. Address the following changes in Section 1 (General Provisions): 1. Revise Paragraph 2.0 (Notices) to update the Maricopa County Department address: For Maricopa County: Representative: Jamie Macfarlane, Assistant Director, Housing and Community Development Division Phone: 602-506-5813 E-mail: Jamie.Macfarlane@maricopa.gov Address: 234 North Central Avenue, Third Floor, Phoenix, Arizona 85004 *2233 W. Dunlap Avenue, 4th Floor Phoenix, AZ 85021 (effective 11/9/26) 2. Revise and replace Paragraph 6.0 (Administrative Change Orders) in its entirety: 6.0 ADMINISTRATIVE CHANGE ORDERS AND ADDENDA 6.1 The Chair of the Board of Supervisors is authorized, upon the recommendation of the Human Services Department Director and Legal Counsel, to review and execute administrative changes to the Agreement on behalf of the Contract No. C-22-24-095-X-01 Amendment No. 1 County through Administrative Change Orders. Administrative Change Orders will be effective upon execution by the Parties. 6.1.1 Administrative Change Orders shall address any of the following changes: 6.1.1.1 Modifications to the project timeline if the last day of the project timeline is within the Agreement term; 6.1.1.2 Modifications to Budget line items if the Agreement amount remains unchanged; 6.1.1.3 Modifications required by federal, state, or County regulations, ordinances, or policies; and/or; 6.1.1.4 Modifications to Administrative requirements such as changes in reporting periods, frequency of reports, or report formats required by federal, state, and local regulations, policies, or requirements. 6.1.2 Addenda: The Parties shall submit to the Human Services Department an Addendum when a property has been identified and will be acquired by the Parties. The Assistant Director for Housing and Community Development is authorized upon the recommendation of the Human Services Department Director and Legal Counsel to review and execute Addenda to the Agreement that are the subject of Section 3 – Statement of Work of this Agreement, on behalf of the County. The Addenda will be effective upon execution by the Parties, and which shall thereby be incorporated into the Agreement. 6.1.2.1 An Addendum shall be integrated into the Agreement. 6.1.2.2 A sample Addendum is attached as Attachment 1. 3. Revise Subparagraph 52.0 (Immigration Laws and Regulations) by replacing Subparagraph 52.2 (Arizona Law) with the following: 52.2 Arizona Law 52.2.1 The CHDO and the Administrator warrant that they will comply with A.R.S. § 41-4401 (E-Verify requirements) and further acknowledge: 52.2.1.1 That CHDO and the Administrator and their Subcontractors and Vendors, if any, warrant their compliance with all federal immigration laws and regulations that relate to their employees and their compliance with A.R.S. § 23-214; 52.2.1.2 A breach of a warranty under Section 52.2.1 above shall be deemed a material breach of this Agreement and the County may immediately terminate this Agreement without liability; and 52.2.1.3 The County and any contracting government entities retain the legal right to inspect the papers and employment Contract No. C-22-24-095-X-01 Amendment No. 1 records of any employees of the CHDO and Administrator and their Subcontractors and Vendors who work on this Agreement to ensure that the CHDO and the Administrator and their Subcontractors and Vendors are complying with the warranty provided under Section 52.2.1 above and that the CHDO and the Administrator agree to make all papers and employment records of such employee(s) available during normal working hours in order to facilitate such an inspection. 4. Revise Paragraph 54.0 (Certification Regarding Debarment, Suspension, Ineligibility And Voluntary Exclusion) by replacing Subparagraph 54.3 with the following: 54.3 Should the CHDO and the Administrator not be able to provide this Certification, an explanation as to why shall be immediately provided to the County, Attention: Housing and Community Development Assistant Director, 234 North Central Avenue, Third Floor, Phoenix, Arizona 85004. *2233 W. Dunlap Avenue, 4th Floor Phoenix, AZ 85021 (effective 11/9/26) 5. Add the following required language to the Agreement: 61.0 WRITTEN CERTIFICATION PURSUANT TO A.R.S. § 35-393.01 If the CHDO and the Administrator engage in for-profit activity and has 10 or more employees, and if this Agreement has a value of $100,000 or more, then the Subrecipient certifies it is not currently engaged in and agrees for the duration of this Agreement not to engage in, a boycott of goods and services from Israel. This certification does not apply to a boycott prohibited by 50 U.S.C. § 4842 or a regulation issued pursuant to 50 U.S.C. § 4842. C. Address the following changes in Section 2 (Special Provisions): 1. Revise Paragraph 18. (Program Completion) by replacing Subparagraph 18.2 with the following: 18.2 The disposition of any property purchased during the term of this Agreement shall follow Section 1 (General Provisions), Paragraph 51.0 (Property). 2. Revise Paragraph 19 (Failure To Make Progress) by replacing Subparagraph 19.1.1 with the following: 19.1.1 The CHDO and the Administrator fail to complete an Environmental Review pursuant to Section 2 (Special Provision) Paragraph 13.0 (Environmental Review Conditions) within one Contract No. C-22-24-095-X-01 Amendment No. 1 hundred and eighty (180) calendar days after the date this Agreement is executed; 3. Revise and replace Paragraph 21.0 (Violence Against Women Reauthorization Act of 2013) in its entirety with the following: 21.0 VIOLENCE AGAINST WOMEN REAUTHORIZATION ACT OF 2022 The CHDO and the Administrator must comply with VAWA 2022, which applies to all victims of domestic violence, dating violence, sexual assault, and stalking, regardless of sex, gender identity, or sexual orientation, and which must be applied consistent with all nondiscrimination and fair housing requirements. The CHDO must give a Notice of Occupancy Rights to tenants and applicants to ensure they are aware of their rights under VAWA, maintain an emergency transfer plan, and document incidents of domestic violence, dating violence, sexual assault, and stalking. D. Revise and replace Section 3 (Work Statement), (HOME Investment Partnerships Program, Program Year 2023), in its entirety with the attached herein. III. Section II above contains all the changes to the Agreement made by this Amendment No. 1. The Agreement is amended to incorporate the changes contained in this Amendment No. 1. All other terms and conditions of the Agreement remain in full force and effect as executed by the Parties. This Amendment No. 1 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. 1 on their behalf, and it shall be effective upon approval and signature by both Parties. [Signatures are contained on following page] Contract No. C-22-24-095-X-01 Amendment No. 1 IN WITNESS THEREOF, the Parties have signed this Amendment No.1: APPROVED BY: APPROVED BY: MARICOPA COUNTY CITY OF AVONDALE (Administrator) _ Kate Brophy McGee Date Ron Corbin Date Chair, Board of Supervisors City Manager Attested to: Attested to: _ Juanita Garza Date Marcella Sarmiento Date Clerk, Board of Supervisors City Clerk IN ACCORDANCE WITH A.R.S. §§ 11-201, IN ACCORDANCE WITH A.R.S. §§ 9-240 and 11-251, AND 11-952, THIS AMENDMENT 11-952, THIS AMENDMENT NO.1 HAS BEEN NO.1 HAS BEEN REVIEWED BY THE REVIEWED BY THE UNDERSIGNED UNDERSIGNED ATTORNEY WHO HAS ATTORNEY WHO HAS DETERMINED THIS DETERMINED THIS AMENDMENT NO.1 IS AMENDMENT NO.1 IS PROPER IN FORM PROPER IN FORM AND WITHIN THE AND WITHIN THE POWERS AND POWERS AND AUTHORITY GRANTED TO AUTHORITY GRANTED TO THE CITY OF MARICOPA COUNTY UNDER THE LAWS OF AVONDALE UNDER THE LAWS OF THE THE STATE OF ARIZONA. STATE OF ARIZONA. APPROVED AS TO FORM: APPROVED AS TO FORM: Deputy County Attorney Date Attorney for the City of Avondale Date APPROVED BY: NEWTOWN COMMUNITY DEVELOPMENT, an Arizona nonprofit corporation (CHDO) Stephanie Brewer Date Executive Director Contract No. C-22-24-095-X-01 Amendment No. 1 MARICOPA COUNTY HOME Investment Partnerships Program Program Year 2023 CHDO: Newtown CDC CHDO UEI: K5HLK49NLDH8 Administrator: City of Avondale, Arizona Administrator UEI: GDTNM5BLN9Y4 FAIN: M-23-DC-04-0227 Federal Award Date: 8/15/2023 Funding: $796,326.00 ($796,326.00 PY23 CR) Activity Type: Acquisition and new construction Single-Family Residential Activity Name: Legacy Avondale Infill Housing Redevelopment (“Project”) 1.0 FUNDING CHDO 2023 HOME MATCH OTHER TOTAL FUNDS RESOURCES BUDGET $796,326 $200,000 (WISH) $407,000 (NSP PI) $3,153,326 $1,750,000 (ARPA) 2.0 SCOPE OF WORK Newtown CDC (CHDO), acting in the capacity of a Developer, will acquire land and construct three (3) single-family homes in Avondale, AZ. The Legacy Avondale Infill Housing Redevelopment Project-Phase 3-consists of a total of six (6) newly constructed, single-family detached dwellings on City owned land. The site is in a Qualified Census Tract at 305 and 309 East Hill Drive, Avondale, Arizona 85323. The two lots will be consolidated and re-platted into six lots to accommodate the new homes. The land will be sold to Newtown at closing. The new homes will be included in Newtown’s Community Land Trust Program (CLT) program and remain affordable per 24 CFR 92. Funds will be paid to the CHDO only after the CHDO has met the commitment requirements as set forth in 24 CFR 92.2 (1) and (2) respectively and is prepared to commence construction within twelve months. The family or individual acquiring the housing must qualify as low-income, as defined in 24 C.F.R. § 5.609, and maintain the housing as the principal residence throughout the period of affordability, which shall be for a period of 15 years. Recapture provisions will be used to ensure compliance with the period of affordability required by HUD at 24 C.F.R. § 92.254 of the HOME regulations. Upon sale to an eligible buyer, a Declaration of Affirmative Land Use Restrictions (LURA) will be executed to secure the Period of Affordability and require the housing to be used as the buyer’s principal residence, as required by HUD. The LURA will include a due on sale clause to ensure that funds are recaptured if the property is sold during the Affordability Period. Contract No. C-22-24-095-X-01 Amendment No. 1 3.0 OBJECTIVES AND OUTCOMES: OUTCOMES OBJECTIVE AVAILABILITY/ AFFORDABILITY SUSTAINABILITY ACCESSIBILITY Homebuyer Activities, Single-Family Acq./Rehab of rental DECENT Housing Rehab housing, Acq./New Housing Activities in a HOUSING and Emergency Construction of rental targeted revitalization Rehab, housing, Expansion of area Homebuyer assisted rental units in the Assistance private marketplace 4.0 LOGIC MODEL: PERFORMANCE INDICATORS OUTPUTS INPUTS/ ACTIVITIES PARTICIPATION OUTCOMES OBJECTIVES RESOURCES Development Develop 3 Three CHDO Increased Decent and staff, funding, units of CHDO households affordable housing affordable contractors housing, in a for low- to housing. project of 6 moderate-income units to be held families. Increased in the homeownership. Avondale CLT Improved neighborhoods and quality of life. 5.0 PERFORMANCE REPORTING GOALS/TIMELINE OF ACTIVITIES COMPLETION MILESTONES: Tasks to be Performed DATE Application/market study 02/2024 Execute third party agreement with County and City of Avondale for HOME funds 04/2024 Development Plan Approved-City of Avondale 05/07/2026 Environmental Review approval 05/30/2024 Submit complete application for construction permits 06/30/2026 RFP for construction activities 04/01/2026 Homeownership counseling/buyer preparation 01/01/2027 Construction of project 07/31/2026 Sale of Unit (Pre-sale and during construction) 01/01/2027 Homebuyer financing secured 05/01/2027 Certificate of Occupancy 06/01/2027 Final Close-out /Project Completion Form 12/31/2027 Any change to the Timeline will need to be approved by the County. 6.0 ACTIVITY BUDGET SUMMARY: Contract No. C-22-24-095-X-01 Amendment No. 1 ACTIVITY HOME CHDO OTHER TOTAL FUNDS RESOURCES ACTIVITY BUDGET Construction Hard Costs $636,326 $1,260,000 $1,896,326 Hard Cost Contingency $300,000 $300,000 Soft costs including: Architect and Engineering Fees, Survey, Permit, Legal Fees, title and recording, insurance, reserves $507,000 $507,000 Project Management Fees $100,000 $100,000 Developer Fee $160,000 $190,000 $350,000 Match Wish Funds $200,000 $200,000 TOTALS $796,326 $2,557,000 $3,353,326 (1) Cash match dedicated to this Project only. Note: A total of $3,000 per activity will be withheld from the total amount of HOME funds obligated to each activity/address. $1,500 may be reimbursed upon completion of rehabilitation/new construction (Certificate of Occupancy) and a signed purchase contract with a qualified buyer. The final $1,500 will be reimbursed when a completion form is submitted by the CHDO to the County. 7.0 ACTIVITY MATCH: AMOUNT FORM OF MATCH SOURCE $200,000 Cash WISH Funds 8.0 SALES PRICE: (1) To ensure the homes are affordable for the target income group, the sales price shall be calculated so that each buyer’s monthly housing expenses (including principal, interest, property taxes, and home insurance) does not exceed 35% of the buyer’s gross monthly household income, unless there are documented compensating factors. In addition, the housing will have a purchase price for the type a single unit of single-family housing that does not exceed 95% of the median purchase price for the area as described in 24 C.F.R. § 92.254 (a)(2). Refer to Section 5 (Attachments), Attachment 3 to this Agreement. (2) The buyer may obtain a mortgage loan with a fixed term and interest rate and 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 CHDO PROJECT PROCEEDS: All proceeds generated from the 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 and reported to the Administrator. Documentation supporting the amount of Project proceeds received and expended shall be submitted to the Administrator and the County. Project proceeds shall be retained and expended by the CHDO for construction of additional properties under this Agreement, or for other HOME-eligible activities with prior approval from the Administrator and the County. 10.0 CONVERSION TO RENTAL: Contract No. C-22-24-095-X-01 Amendment No. 1 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, 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 HOME funds must be repaid to the County. Contract No. C-22-24-095-X-01 Amendment No. 1 Attachment 1 ADDENDUM TO THE AGREEMENT BETWEEN MARICOPA COUNTY ADMINISTERED BY ITS HUMAN SERVICES DEPARTMENT AND NEWTOWN COMMUNITY DEVELOPMENT CORPORATION AND CITY OF AVONDALE ACTIVITY: Acquisition/Rental of Single-Family Homes CONTRACT START: 9/30/2026 CONTRACT END DATE: 9/30/2028 CONTRACT NUMBER: ____________________ I. The purpose of this Addendum is to identify the property(ies) acquired for Project activities. II. Pursuant to the Agreement Section 1 (General Provisions), Paragraph 6 (Administrative Change Orders and Addenda), Subparagraph 6.1.2 (Addenda) of the Agreement, the following properties are hereby identified for purchase: III. All other terms of the Agreement not amended by this Addendum shall remain in full force and effect as approved. IV. The Parties have authorized the undersigned to execute this Addendum on their behalf. V. This Addendum shall be effective upon approval and signature by the Parties. (Signatures are contained on the following page) Contract No. C-22-24-095-X-01 Amendment No. 1 IN WITNESS THEREOF, the Parties have signed this Addendum: APPROVED BY: APPROVED BY: MARICOPA COUNTY CITY OF AVONDALE (Administrator) _ Jamie Macfarlane Date Ron Corbin Date Assistant Director City Manager Attested to: _ Marcella Sarmiento Date City Clerk IN ACCORDANCE WITH A.R.S. §§ 11-201, IN ACCORDANCE WITH A.R.S. §§ 9-240 and 11-251, AND 11-952, THIS ADDENDUM HAS 11-952, THIS ADDENDUM HAS BEEN BEEN REVIEWED BY THE UNDERSIGNED REVIEWED BY THE UNDERSIGNED ATTORNEY WHO HAS DETERMINED THIS ATTORNEY WHO HAS DETERMINED THIS ADDENDUM IS PROPER IN FORM AND ADDENDUM IS PROPER IN FORM AND WITHIN THE POWERS AND AUTHORITY WITHIN THE POWERS AND AUTHORITY GRANTED TO MARICOPA COUNTY UNDER GRANTED TO THE CITY OF AVONDALE THE LAWS OF THE STATE OF ARIZONA. UNDER THE LAWS OF THE STATE OF ARIZONA. APPROVED AS TO FORM: APPROVED AS TO FORM: Deputy County Attorney Date Attorney for the City of Avondale Date APPROVED BY: NEWTOWN COMMUNITY DEVELOPMENT, an Arizona nonprofit corporation (CHDO) Stephanie Brewer Date Executive Director