AMENDMENT 8 RE AFFORDABLE HOUSING WITH GUADALUPE COMMUNITY DEVELOPMENT CORPORATION.PDF
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Contract No. C-22-21-061-X-08 Amendment No. 8 AMENDMENT NO. 8 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 single-family, affordable homes for sale to low-income household in the town of Guadalupe. The County has provided the Developer with HOME Investment Partnerships Program (HOME) funds in the amount of $1,838,595.97 from the U.S. Department of Housing and Urban Development (HUD) under Assistance Listing Number (ALN) 14.239 and $1,040,000.00 in American Rescue Plan Act (ARPA)-State & Local Fiscal Recovery Act Funds (SLFRF) under ALN 21.027 from the U.S. Department of the Treasury. The Agreement term is November 18, 2020, through September 30, 2027. The County and Developer are collectively referred to as the “Parties.” II. The Parties now therefore agree to enter into this Amendment No. 8 to amend the Agreement as follows: A. The Agreement funding shall hereby be increased by $270,000 in PY26 HOME Investment Partnership Program (HOME) funds provide by through the US. Department of Housing and Urban Development (HUD) provided to the County under ALN 14.239, for a new Agreement total of $3,148,595.97. B. Extend the term of the Agreement from September 30, 2027, through September 30, 2028. C. In Section 3 (Work Statement) address the following: 1. Revise and replace HOME Investment Partnerships Program Year 2025 Work Statement attached herein incorporated into the Agreement . 2. Add an additional Work Statement hereinafter referred to as “HOME Investment Partnerships Program Year 2026 Work Statement” attached and incorporated into the Agreement. The County shall provide GCDC with $270,000 for the Work Statement activities, provided by PY26 HOME Investment Partnership Program (HOME) funds awarded to the County by the US. Department of Housing and Urban Development (HUD) under ALN 14.239. All work performed or costs incurred shall be reimbursable through September 30, 2028. D. In revise Section 4 (Compensation), revise and replace Paragraph 4.0 (Reimbursement), in its entirety with the following: 4.0 REIMBURSEMENT The County shall provide financial assistance in an amount not to exceed Three Million One Hundred Forty-Eight Thousand Five Hundred Ninety-Five and Ninety-Seven hundredths ($3,148,595.97) Contract No. C-22-21-061-X-08 Amendment No. 8 subject to the terms of this Agreement and availability of funds. III. Section II above contains all the changes to the Agreement made by this Amendment No. 8. The Agreement is amended to incorporate the changes contained in this Amendment No. 8. All other terms and conditions of the Agreement remain in full force and effect as executed by the Parties. This Amendment No. 8 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. 8 on their behalf, and it shall be effective upon approval and signature by the Parties. IN WITNESS THEREOF, the Parties have signed this Amendment No. 8: APPROVED BY: APPROVED BY: MARICOPA COUNTY GUADALUPE COMMUNITY DEVELOPMENT CORPORATION (Developer) Kate Brophy McGee Date Steve Langstaff Date Chair, Board of Supervisors Executive Director Attested to: _ Juanita Garza Date Clerk, Board of Supervisors This Amendment No. 8 has been reviewed by the undersigned Deputy County Attorney who has determined that it is proper in form and within the powers and authority granted to Maricopa County under the laws of the State of Arizona. Approved as to Form: Deputy County Attorney Date Contract No. C-22-21-061-X-08 Amendment No. 8 MARICOPA COUNTY HOME Investment Partnerships Program Program Year 2025 Work Statement Subrecipient: Guadalupe Community Development Corporation UEI: KL35BWURJDN3 FAIN: M-25-DC-04-0227 Federal Award Date: 9/16/2025 Funding: $235,000.00 PY25 EN Project: Single Family New Construction Type of Property: Single Family Residential Activity Type: Homebuyer 1.0 FUNDING Maricopa County GCDC HOME EN Project TOTAL PY2025 Proceeds BUDGET $235,000.00 $81,250.00 $382,250.00 2.0 SCOPE OF WORK 2.0 Project Description: In-fill housing of single-family, new construction on the currently vacant lot at 5639 E Calle Pitaya, 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 2000 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 Guadalupe Community Development Corporation Page 3 of 12 Contract No. C-22-21-061-X-08 Amendment No. 8 responsible and qualified subcontractors to 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. 2.7 BABA: Pursuant to the Build America, Buy America Act (BABA), enacted as part of the Infrastructure Investment and Jobs Act (IIJA). Pub. L. 117-58, 41 U.S.C. § 8301 note, the Federal Financial Assistance used to fund this infrastructure project is required to apply a domestic content procurement preference (the “Buy America Preference” or “BAP”) for all construction, alteration, maintenance, or repair of infrastructure, including buildings and real property, unless application of the BAP has been waived by HUD. Additional details on fulfilling the BABA requirements can be found at https://www.hud.gov/hud- partners/baba. 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 Guadalupe Community Development Corporation Page 4 of 12 Contract No. C-22-21-061-X-08 Amendment No. 8 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. 5.0 PERFORMANCE REPORTING GOALS/TIMELINE OF ACTIVITIES MILESTONES: Tasks to be Performed COMPLETION DATE Application/market study 10/30/2024 Execute Amendment with Maricopa County for HOME funds 12/1/2025 Development Plan Approved-Town of Guadalupe 10/15/2026 Environmental Review approval 05/22/2023 Submit complete application for construction permits 10/30/2026 RFP for construction activities 11/15/2026 Homeownership counseling/buyer preparation 04/01/2027 Construction Start of project 01/05/2027 Sale of Unit (Pre-sale and during construction) 06/15/2027 Execute Homebuyer Recapture Agreement 06/15/2027 Homebuyer financing secured 07/01/2027 Final inspection by MCHSD 08/01/2027 Certificate of Occupancy 07/15/2027 Final Close-out /Project Completion Form 08/15/2027 Any change to the Timeline will need to be approved by the County. Expenditure Deadline for this Scope of Work is 9/30/2028. 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% Guadalupe Community Development Corporation Page 5 of 12 Contract No. C-22-21-061-X-08 Amendment No. 8 7.0 ACTIVITY BUDGET SUMMARY: ACTIVITY MARICOPA OTHER PROJECT TOTAL COUNTY RESOURCES PROCEEDS ACTIVITY HOME FUNDS (Table 8 Below) BUDGET Lot Acquisition $0.00 $0.00 $81,250.00 $81,250.00 Site Demolition $0.00 $0.00 $0.00 $0.00 Development $235,000.00 $58,750.00 $0.00 $293,750.00 Costs Developer Fees $0.00 $0.00 $0.00 $0.00 Totals $235,000.00 $58,750.00 $81,250.00 $375,000.00 7.1 A total of $2,500.00 will be withheld as retainage from the total amount of HOME funds obligated to each activity/address. $1,500.00 may be reimbursed upon completion of construction (Certificate of Occupancy) and a signed purchase contract with a qualified buyer. The final $1,000.00 will be reimbursed when a completion form is submitted by GCDC to the County. 8.0 SOURCE AND AMOUNT OF OTHER RESOURCES: OTHER RESOURCES AMOUNT Pascua Yaqui Tribe Match Contribution $58,750.00 Pascua Yaqui Tribe Revenue Sharing Grant $81,250.00 9.0 ACTIVITY MATCH: AMOUNT FORM OF MATCH SOURCE $58,750.00 Non-federal Match Pascua Yaqui Tribe 10.0 SALES PRICE: 10.1 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). 10.2 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. 11.0 PROGRAM INCOME 11.1 All proceeds generated from the development activities shall be considered Program Income and subject to the Program Income requirements set forth in HOME Program Guadalupe Community Development Corporation Page 6 of 12 Contract No. C-22-21-061-X-08 Amendment No. 8 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. 11.2 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. 12.0 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. 13.0 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. Guadalupe Community Development Corporation Page 7 of 12 Contract No. C-22-21-061-X-08 Amendment No. 8 MARICOPA COUNTY HOME Investment Partnerships Program Program Year 2026 Work Statement Subrecipient: Guadalupe Community Development Corporation UEI: KL35BWURJDN3 FAIN: M-26-DC-04-0227 Federal Award Date: 9/21/2026 Funding: $270,000.00 PY26 EN Project: Single Family New Construction Type of Property: Single Family Residential Activity Type: Homebuyer 1.0 FUNDING Maricopa County GCDC HOME EN Project TOTAL PY2026 Proceeds BUDGET $270,000.00 $70,000.00 $415,000.00 2.0 SCOPE OF WORK 2.8 Project Description: In-fill housing of single-family, new construction on the currently vacant lot at 9409 S. Calle Maravilla, Guadalupe, Arizona, 85283 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 2100 square feet. The home will be fully accessible and conserve water, reduce utility demand and maintenance costs, and foster a healthy living environment. 2.9 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. 2.10 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. 2.11 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. 2.12 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 perform the duties of the project. GCDC shall Guadalupe Community Development Corporation Page 8 of 12 Contract No. C-22-21-061-X-08 Amendment No. 8 verify the qualifications of each subcontractor through license verification, references, and SAM.gov. 2.13 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. 2.14 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. 2.15 BABA: Pursuant to the Build America, Buy America Act (BABA), enacted as part of the Infrastructure Investment and Jobs Act (IIJA). Pub. L. 117-58, 41 U.S.C. § 8301 note, the Federal Financial Assistance used to fund this infrastructure project is required to apply a domestic content procurement preference (the “Buy America Preference” or “BAP”) for all construction, alteration, maintenance, or repair of infrastructure, including buildings and real property, unless application of the BAP has been waived by HUD. Additional details on fulfilling the BABA requirements can be found at https://www.hud.gov/hud- partners/baba. 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 Guadalupe Community Development Corporation Page 9 of 12 Contract No. C-22-21-061-X-08 Amendment No. 8 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. 5.0 PERFORMANCE REPORTING GOALS/TIMELINE OF ACTIVITIES MILESTONES: Tasks to be Performed COMPLETION DATE Application/market study 12/1/2025 Execute Amendment with Maricopa County for HOME funds 9/30/2026 Development Plan Approved-Town of Guadalupe 10/15/2026 Environmental Review approval 9/24/2025 Submit complete application for construction permits 10/30/2026 RFP for construction activities 11/15/2026 Homeownership counseling/buyer preparation 04/01/2027 Construction Start of project 01/05/2027 Sale of Unit (Pre-sale and during construction) 06/15/2027 Execute Homebuyer Recapture Agreement 06/15/2027 Homebuyer financing secured 07/01/2027 Final inspection by MCHSD 08/01/2027 Certificate of Occupancy 7/15/2027 Final Close-out /Project Completion Form 8/15/2027 Any change to the Timeline will need to be approved by the County. Expenditure Deadline for this Scope of Work is 9/30/2028. 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% Guadalupe Community Development Corporation Page 10 of 12 Contract No. C-22-21-061-X-08 Amendment No. 8 7.0 ACTIVITY BUDGET SUMMARY: ACTIVITY MARICOPA OTHER PROJECT TOTAL COUNTY RESOURCES PROCEEDS ACTIVITY HOME FUNDS (Table 8 Below) BUDGET Lot Acquisition $0.00 $0.00 $70,000.00 $70,000.00 Site Demolition $0.00 $0.00 $0.00 $0.00 Development $270,000.00 $55,000.00 $0.00 $325,000.00 Costs Developer Fees $0.00 $20,000.00 $0.00 $20,000.00 Totals $270,000.00 $75,000.00 $70,000.00 $415,000.00 7.2 A total of $2,500.00 will be withheld as retainage from the total amount of HOME funds obligated to each activity/address. $1,500.00 may be reimbursed upon completion of construction (Certificate of Occupancy) and a signed purchase contract with a qualified buyer. The final $1,000.00 will be reimbursed when a completion form is submitted by GCDC to the County. 8.0 SOURCE AND AMOUNT OF OTHER RESOURCES: OTHER RESOURCES AMOUNT Pascua Yaqui Tribe Revenue Sharing Grant $75,000.00 9.0 ACTIVITY MATCH: AMOUNT FORM OF MATCH SOURCE $110,124.43 Non-federal Match Stardust Foundation Inc. 10.0 SALES PRICE: 10.3 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). 10.4 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. 11.0 PROGRAM INCOME 11.1 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. Guadalupe Community Development Corporation Page 11 of 12 Contract No. C-22-21-061-X-08 Amendment No. 8 11.2 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. 14.0 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. 15.0 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. Guadalupe Community Development Corporation Page 12 of 12