NEWTOWN CDC CHDO PY22 AMENDMENT 1.PDF
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Contract No. C-22-22-178-X-01 Amendment No. 1 Newtown Community Development Corporation Page 1 of 9 AMENDMENT NO. 1 TO THE AGREEMENT FOR SERVICES BETWEEN MARICOPA COUNTY HUMAN SERVICES DEPARTMENT AND NEWTOWN COMMUNITY DEVELOPMENT CORPORATION A COMMUNITY HOUSING DEVELOPMENT ORGANIZATION I. Maricopa County (“County”) administered by its Human Services Department and Newtown Community Development Corporation, a Community Housing Development Organization (the “CHDO”) entered into a financial Agreement (“Agreement”) on or about October 6, 2021. The purpose of the Agreement is for the CHDO to acquire and rehabilitate five (5) single-family houses within the city limits of Glendale, Peoria, and Surprise. This project is a scattered-site single-family homeownership project. The County provided the CHDO with funds through the U.S. Department of Housing and Urban Development (HUD), HOME Investment Partnerships Program (HOME) Program Year 2021 funds in the amount not-to-exceed $443,507. All work performed or costs incurred or expended shall be reimbursable through September 30, 2024. The County and the CHDO are collectively referred to as the “Parties.” The Parties fully executed Addendum No. 1 on December 28, 2021. The purpose of the Addendum is to identify one (1) property acquired for Project activities. II. The Parties agree to enter into this Amendment No. 1 to amend the Agreement as follows: A. Change Lead Agency Maricopa County Representative: Shawn Pierce, Deputy Director Human Services Department Phone: 602-506-5006 E-Mail: shawn.pierce@maricopa.gov Address: 234 North Central, 3rd Floor Phoenix AZ 85004 B. Extend the Agreement term from September 30, 2024 through September 30, 2025. C. Revise Section 1 (General Provisions) to add the following new paragraphs: 56.0 SYSTEM FOR AWARD MANAGEMENT The CHDO shall have a valid Unique Entity Identifier (UEI) number and an active profile in the federal System for Award Management, or www.SAM.gov Documentation of the UEI Number must be included in all project files. 57.0 UYGHUR FORCED LABOR PREVENTION ACT (UFLPA) 57.1 The CHDO warrants and certifies that it does not currently, and agrees for the duration of the agreement that it will not, use: 57.1.1 the forced labor of ethnic Uyghurs in the People's Republic of China. 57.1.2 any goods or services produced by the forced labor of ethnic Uyghurs in the People's Republic of China. Contract No. C-22-22-178-X-01 Amendment No. 1 Newtown Community Development Corporation Page 2 of 9 57.1.3 any contractors, subcontractors or suppliers that use the forced labor or any goods or services produced by the forced labor of ethnic Uyghurs in the People's Republic of China. 57.2 If the CHDO becomes aware during the term of the Agreement that the CHDO is not in compliance with this paragraph, the CHDO shall notify the County within five business days after becoming aware of the noncompliance. Failure of the CHDO to provide a written certification that the CHDO has remedied the noncompliance within one hundred eighty (180) days after notifying the County of its noncompliance, this Agreement shall terminate unless the Term of this Agreement shall end prior to said one hundred eighty (180) day period. D. Revise Section 2 (Special Provisions) to address the following paragraphs: 1. Paragraph 15.0 (Regarding Subcontracts and Vendors) delete Subparagraph 15.2 and replace it with the following: 15.2 Unique Entity Identification (UEI) Number – The CHDO and all subcontractors shall have a valid UEI number and an active profile in the federal System for Award Management, or SAM.gov. Documentation of the UEI Number must be included in all project files. 2. Paragraph 19.0 (GENERAL CONDITIONS), delete in its entirety and replace with the following: 19.1 Administrative Change Orders and Addenda – The Chairman of the Board of Supervisors is authorized upon the recommendation of the Human Services Department Director and Legal Counsel to: a.) make changes within the general scope of the Agreement on behalf of the County through Administrative Change Orders, and b.) identify the single-family properties that are subject of Section III (Work Statement), Paragraph 1.0 (Detailed Scope of Work) of this Agreement through Addenda. Both Administrative Change Orders and Addenda shall be approved and fully executed by the Chairman of the Board of Supervisors and the authorized representative for the CHDO. 19.1.1 Administrative Change Orders may address any of the following areas: 19.1.1.1 Modifications to the Project timeline if the last day of the Project timeline is within the Agreement term; 19.1.1.2 Modifications to Budget line items if the Agreement Amount remains unchanged; 19.1.1.3 Modifications required by federal, state, or County regulations, ordinances, or policies; 19.1.1.4 Modifications to Administrative requirements such as changes in reporting periods, frequency of reports, or report formats required by HUD or local regulations, policies, or requirements; and 19.1.2 Addenda: Contract No. C-22-22-178-X-01 Amendment No. 1 Newtown Community Development Corporation Page 3 of 9 19.1.2.1 The CHDO and the Administrator shall submit to the County, an Addendum when each property has been identified and will be acquired by the CHDO and the Administrator for rehabilitation activities under this Agreement; and 19.1.2.2 All Addenda shall be integrated into the Agreement. 19.1.3 It is the responsibility of the CHDO to ensure the latest documents are consulted and followed. E. Add an additional Work Statement (“2022 Work Statement”) for the CHDO to acquire and rehabilitate four (4) single-family houses in Maricopa County’s Urban County cities or County islands and make available for homeownership to eligible families. All work performed, or costs incurred or expended for this Work Statement, shall be reimbursable through September 30, 2025. F. The County shall provide the CHDO with $493,927.26 in U.S. Department of Housing and Urban Development (HUD), HOME Investment Partnerships Program (HOME) Program Year 2022 funds under ALN 14.239 for the 2022 Work Statement activities. G. The Agreement funding amount shall be increased from $443,507 to $937,434.26. H. Revise Section 4 (Compensation), Paragraph 4.0 (Reimbursement), delete in its entirety and replace with the following: 4.0 REIMBURSEMENT The County shall increase the Agreement funding amount to a total not-to- exceed Nine Hundred Thirty-Seven Thousand Four Hundred Thirty-Four and Twenty-Six Cents ($937,434.26) subject to the terms of this Agreement and availability of funding. II. Section II above contains all the changes made by this Amendment No. 1. All other terms and conditions of the Agreement shall remain in full force and effect as approved and amended. III. 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 the Parties. Signatures are contained on the following page Contract No. C-22-22-178-X-01 Amendment No. 1 Newtown Community Development Corporation Page 4 of 9 IN WITNESS THEREOF, the Parties have signed this Amendment: APPROVED BY: MARICOPA COUNTY Bill Gates Date Chairman, Board of Supervisors APPROVED BY: NEWTOWN COMMUNITY DEVELOPMENT CORPORATION (CHDO) Stephanie Brewer Date Executive Director Attested to: _ Juanita Garza Date Clerk of the Board IN ACCORDANCE WITH A.R.S. §§ 11-201 11- 251, AND 11-952, THIS AMENDMENT NO. 1 HAS BEEN REVIEWED BY THE UNDERSIGNED ATTORNEY WHO HAS DETERMINED 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-22-22-178-X-01 Amendment No. 1 2022 Work Statement Newtown Community Development Corporation Page 5 of 9 MARICOPA COUNTY HOME Investment Partnerships Program Program Year 2022 (CHDO) Project: Urban County Land Trust Program- CHDO (Homeownership) Type of Property: Acquisition and Rehabilitation of 2 Single Family Houses 1.0 FUNDING HOME PY 2022 CHDO FUNDS OTHER RESOURCES TOTAL BUDGET $493,927 $530,453 $1,024,380 2.0 SCOPE OF WORK 2.1 Project Description: The CHDO will acquire and rehabilitate four (4) single-family houses within Maricopa County’s Urban County Cities or County Islands.. This project is a scattered-site single-family homeownership project. The Parties agree to execute an addendum at the time the property is identified. An Addendum to this Agreement identifying individual properties by street address for participation in the CHDO's Community Land Trust Program (CLT) will be executed before funding is made available regarding each property. Funds will be paid to the CHDO only after it has met the commitment requirements as set forth in 24 C.F.R. § 92.2 (1) and (2), respectively, and is prepared to commence rehabilitation within twelve months. 2.1.1 Funds for rehabilitation are obligated by completing a detailed set of specifications (work write-up) and completing a detailed rehabilitation cost estimate based upon those specifications. The cost estimate may include a contingency for construction change orders. The CHDO must inspect each property prior to occupancy and at project completion to ensure compliance with applicable standards and codes. Each 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 the final inspection report must be retained in the project files and submitted to the County upon submitting a completion report. 2.1.2 After rehabilitation is completed, the homes will be sold to eligible low- income first-time homebuyers. Properties will be acquired using the CHDO’s line of credit, following environmental review approval from Maricopa County. 2.1.3 In addition to the requirements set forth in Section 4 (Compensation), the CHDO will execute a Deed of Trust and Note provided by the County and naming the County as the Beneficiary in order to secure any funds provided to the CHDO as reimbursement for acquisition costs. Upon sale of the property to an eligible buyer, the County will provide a Deed of Release and Re-conveyance (By Beneficiary) for the secured acquisition funds. 2.1.4 Resale provisions: Resale provisions will be used to ensure compliance with the period of affordability required by HUD at 92.254 Contract No. C-22-22-178-X-01 Amendment No. 1 2022 Work Statement Newtown Community Development Corporation Page 6 of 9 of the HOME regulations. The affordability restrictions will be secured by the CLT Ground Lease and a Declaration of Affirmative Land Use Restrictions. 2.1.5 The completed units will be sold through the CLT program in which the buyer only purchases the improvements to the real property and enters into a 99-year CLT Ground Lease with the CHDO. The CLT Ground Lease contains provisions that require that the housing to be used as the buyer's principal residence and restricts resale/ transfer to only Low- Income buyers. In addition, the CLT Ground Lease contains 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 will be recorded. A "Performance" Deed of Trust” will also be recorded naming the CHDO as the Beneficiary; ensuring the CHDO is notified in the event the owner of the home attempts to refinance or transfer the property. 2.1.6 The shared appreciation provision will conform to the Maricopa HOME Consortium’s Resale Provisions. "Fair Return" for leasehold properties is defined as the lessee’s 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 licensed appraiser. 2.1.7 Upon sale to an eligible buyer, a Declaration of Affirmative Land Use Restrictive Covenant for HOME Project will be executed between the buyer and the CHDO and recorded against the land to secure the Period of Affordability as required by HUD. The Period of Affordability will be based on the total amount of HOME funds invested in the housing. 2.1.8 Eligible buyers will be required to complete an approved homebuyer education class, homeownership counseling, and a CLT orientation. The CLT orientation fully explains the ground lease, resale restrictions, shared equity, and all other provisions of the CLT program. Once a purchase contract is approved, the CHDO will execute a Homebuyer Resale Agreement with the approved low-income homebuyer. 2.2 Project Purpose: The Project will create homeownership opportunities for five low- income households, which is rated a high priority in the Consolidated Plan. 2.3 Project Beneficiaries: Five first-time homebuyers at or below 80% of the area median income will benefit from this Project. Beneficiaries’ income eligibility will be verified by the CHDO’s staff and will comply with 24 C.F.R §. 92.203(d)(1). 2.4 Eligible buyers will be required to complete an approved homebuyer education class and homeownership counseling. 2.5 Project Staff: The CHDO shall maintain staff qualified to perform the duties of the project. The CHDO 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 Agreement. The CHDO will be responsible for all communications with the Maricopa HOME Consortium, providing all updates and as needed reporting. In addition, any complaints will be the responsibility of the CHDO. 2.6 Subcontractors: The CHDO 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 Contract No. C-22-22-178-X-01 Amendment No. 1 2022 Work Statement Newtown Community Development Corporation Page 7 of 9 selecting the general contractor and Subcontractors. The CHDO shall select Subcontractors in accordance with the Administrative Requirements of this Agreement. The CHDO shall contract with responsible and qualified Subcontractors to perform the duties of the project. The CHDO shall verify the qualifications of each Subcontractor through license verification, references, and SAM.gov. 2.7 Project Affordability: 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 from the date that the completion report is entered into HUD’s Integrated Disbursement and Information System (IDIS). Resale 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. 2.7.1 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. The CHDO will use it’s Right of First Refusal to purchase the home and resell the home to an eligible low-income homebuyer. 3.0 OBJECTIVES AND OUTCOMES: OBJECTIVE OUTCOMES AVAILABILITY/ ACCESSIBILITY AFFORDABILITY SUSTAINABILITY DECENT HOUSING Single-Family Housing Rehab and Emergency Rehab, Homebuyer Assistance Homebuyer Activities, Acq/Rehab of rental housing, Acq/New Construction of rental housing, Expansion of assisted rental units in the private marketplace Housing Activities in a targeted revitalization area Contract No. C-22-22-178-X-01 Amendment No. 1 2022 Work Statement Newtown Community Development Corporation Page 8 of 9 4.0 LOGIC MODEL: PERFORMANCE INDICATORS OUTPUTS INPUTS/ RESOURCES ACTIVITIES PARTICIPATION OUTCOMES OBJECTIVES Development Staff, Funding and Contractors Acquire and rehabilitate four (4) units of Affordable Housing to be held in the CLT Four (4) Households Increased affordable housing for a low-income family. Increased homeownership. Improved neighborhoods and quality of life. Decent and affordable housing 5.0 PERFORMANCE REPORTING GOALS/TIMELINE OF ACTIVITIES MILESTONES: Tasks to be Performed COMPLETION DATE Application/market study 12/2021 Execute CHDO Agreement with Maricopa County 3/2023 Site Selection 4/2023 Environmental Reviews to Maricopa County 6/2024 Homeownership counseling/buyer preparation 6/2024 Execute Homebuyer Agreement for Resale 6/2024 Acquisition 6/2024 Produce Scope of Work and Bid Selection 7/2024 Homebuyer Financing Secured 7/2024 Rehabilitation/Construction 9/2024 MCHSD Final inspection 9/2024 Resale of Properties to Eligible Homebuyers 9/2024 Expend Proceeds 11/2024 Final Close-out /Project Completion Form 12/2024 Any change to the Timeline will need to be approved by the County. 6.0 ACTIVITY BUDGET SUMMARY: ACTIVITY PY 2022 HOME CHDO FUNDS OTHER RESOURCES TOTAL ACTIVITY BUDGET Acquisition $493,927 $314,093 $808,020 Rehabilitation $100,000 $100,000 Developer Fee $90,800 $90,800 Closing costs $25,560 $25,560 TOTALS $493,927 530,453 $1,024,380 Note: A total of $3,000 per activity will be withheld as retainage from the total amount of HOME funds obligated to each activity until a completion report is submitted to the County. Contract No. C-22-22-178-X-01 Amendment No. 1 2022 Work Statement Newtown Community Development Corporation Page 9 of 9 7.0 ACTIVITY MATCH: AMOUNT FORM OF MATCH SOURCE $137,500 WISH Funds Federal Home Loan Bank of San Francisco 8.0 SALES PRICE: 8.1 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 an initial purchase price or estimated after rehabilitation 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 Attachment 3 to this Agreement. 8.2 The buyer must 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 PROJECT PROCEEDS AND DISPOSITION: All proceeds generated from the development activities shall be considered Project proceeds and subject to the requirements set forth in HOME Program regulations, as defined in 24 C.F.R. § 92. Project proceeds shall be retained and expended by the CHDO for the acquisition and rehabilitation of additional properties under this Agreement. Project proceeds shall be tracked by the CHDO and reported to the County with each Request for Reimbursement and at the request of the County. 10.0 CONVERSION TO RENTAL: If the 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 HOME funds must be repaid to the County.