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Contract No. C-22-21-035-X-01 Amendment No. 1 Newtown Community Development Corporation Page 1 of 15 AMENDMENT NO. 1 TO THE DEVELOPER AGREEMENT BETWEEN MARICOPA COUNTY ADMINISTERED BY ITS HUMAN SERVICES DEPARTMENT AND NEWTOWN COMMUNITY DEVELOPMENT CORPORATION I. Maricopa County (“County”) administered by its Human Services Department and Newtown Community Development Corporation (“Developer”) entered into a financial Developer Agreement (“Agreement”) on or about September 16, 2020. The purpose of the Agreement is to provide funding for Developer to acquire and rehabilitate five (5) single-family houses in Maricopa County’s Urban County cities or County islands. The completed homes will be sold to eligible low-income first- time homebuyers as part of Newtown’s Community Land Trust Program which will ensure the homes remain affordable in perpetuity. The County provided Newtown with $540,000 in U.S. Department of Housing and Urban Development (HUD), HOME Investment Partnerships Program (HOME) Program Year 2020 funds.. All work performed or costs incurred or expended shall be reimbursable through August 31, 2024. The County and Newtown are collectively referred to as the “Parties.” The Parties fully executed Addendum No. 1 on August 31, 2021. The purpose of the Addendum is to identify four (4) properties acquired for Project activities. II. The Parties agree to enter into this Amendment No. 1 to amend the Agreement as follows: A. Extend the termination of the Agreement from August 31, 2024 through September 30, 2025. B. Add an additional Work Statement (“2021 Work Statement”) for Newtown to acquire and rehabilitate an additional three (3) single-family houses in Maricopa County’s Urban County cities or County islands. The expenditure term for this Work Statement shall All work performed, or costs incurred or expended for this Work Statement, shall be reimbursable through September 30, 2025. C. The County shall provide Newtown with funding for the 2021 Work Statement activity a not to exceed amount of $334,213.26. D. Revise Section 1 (General Provisions) to address the following paragraphs: 1. Paragraph 36.0 (INSURANCE), by deleting Subparagraphs 36.11 through 36.17 and replacing them with the following: Contract No. C-22-21-035-X-01 Amendment No. 1 Newtown Community Development Corporation Page 2 of 15 36.11 Commercial General Liability: Commercial General Liability insurance and, if necessary, Commercial Umbrella insurance with a limit of not less than $2,000,000 for each occurrence, $2,000,000 Products/Completed Operations Aggregate, and $4,000,000 General Aggregate Limit. The policy shall include coverage for premises liability, bodily injury, broad form property damage, personal injury, products and completed operations and blanket contractual coverage, and shall not contain any provisions which would serve to limit third party action over claims. There shall be no endorsement or modifications of the CGL limiting the scope of coverage for liability arising from explosion, collapse, or underground property damage. 36.12 Worker’s Compensation: 36.12.1 Worker’s Compensation insurance to cover obligations imposed by federal and state statutes having jurisdiction of the Developer’s employees engaged in the performance of the work or services under this Agreement; and Employer’s Liability insurance of not less than $1,000,000 for each accident, $1,000,000 disease for each employee, and $1,000,000 disease policy limit. 36.12.2 Developer waives all rights against County and its agents, representatives, officials, officers, directors, employees, volunteers, departments, agencies, boards, and commissions for recovery of damages to the extent these damages are covered by the Worker’s Compensation and Employer’s Liability or commercial umbrella liability insurance obtained by the Developer pursuant to this Agreement. 36.13 Sexual Molestation and Physical Abuse: 36.13.1 When services involve working with children, elderly, or disabled individuals, the insurance requirements in the (sub)contract must include coverage for "sexual molestation and physical abuse." Coverage for this type of claim, or allegation, is excluded from standard general liability policies. Therefore, Developers whose services include working with or caring (or both) for children/elderly and disabled persons should have their policies specifically endorsed to include this coverage. 36.13.2 The policy shall be endorsed to include coverage for sexual molestation and physical abuse at limits not less than $2,000,000.00 per occurrence and $4,000,000.00 aggregate. These limits may be included within a General Liability policy, Professional Liability Contract No. C-22-21-035-X-01 Amendment No. 1 Newtown Community Development Corporation Page 3 of 15 policy or provided by separate endorsement with its own limits as required. Developer and its Subcontractors must provide the following statement on their Certificate(s) of Insurance: “Sexual molestation and physical abuse coverage is included.” Policies/certificates stating that “Sexual molestation and physical abuse coverage is not excluded” do not meet this requirement. 36.14 Certificates of Insurance: Upon execution of this Agreement, the Developer shall, and shall cause any of its Subcontractors, to furnish the County with valid and complete certificates of insurance, or formal endorsements as required by the Agreement, issued by the Developer’s insurer(s), as evidence that policies providing the required coverage, conditions and limits required by this Agreement are in full force and effect. Such certificates shall identify this Agreement by number and title. 36.15 Prior to commencing either work or services under this Agreement, the Developer shall have insurance in effect as required by the Agreement in the form provided by the County, issued by the Developer’s insurer(s), as evidence that policies providing the required coverage, conditions and limits required by this Agreement are in full force and effect. Such certificates shall be made available to the County with ten (10) business days after a request by the County. BY SIGNING THIS AGREEMENT, THE DEVELOPER AGREES TO THIS REQUIREMENT AND THAT FAILURE TO MEET THIS REQUIREMENT WILL RESULT IN CANCELLATION OF THIS AGREEMENT. 36.16 In the event any insurance policy(ies) required by this Agreement is (are) written on a “claims made” basis, coverage shall extend for two years past completion and acceptance of the Developer’s work or services and as evidenced by annual Certificates of Insurance. 36.17 If a policy does expire during the life of this Agreement, then a renewed Certificate of Insurance must be sent to the County forty-five (45) business days prior to the expiration date. 36.18 Cancellation and Expiration Notice: Insurance required under this Agreement shall not be permitted to expire, be canceled, or materially changed without thirty (30) business days prior written notice to the County. 36.19 If the Developer provides professional or semi-professional personal services under this Agreement for which malpractice or professional liability coverage is available, such as medical, psychiatric, or legal services, then the Developer shall carry Contract No. C-22-21-035-X-01 Amendment No. 1 Newtown Community Development Corporation Page 4 of 15 minimum liability coverage of $2,000,000 each occurrence and provide the County with proof of coverage. 36.20 Subcontractor: The Developer’s certificate(s) shall include all Subcontractors as insureds under its policies or the Developer shall furnish to the County separate certificates for each Subcontractor. All coverages for Subcontractors shall be subject to the minimum requirements identified above. 36.21 Approval: Any modification or variation from the insurance requirements in any agreement must have prior approval from the County whose decision shall be final. Such action will not require a formal Amendment. Exceptions: In the event the Developer is a public entity, the Insurance Requirements shall not apply to such public entity. Such public entity shall provide a Certificate of Self-Insurance or a Certificate of Proof of Pool Insurance. Nongovernmental Subcontractors of the Developer shall comply with all insurance terms. 2. Paragraph 39.0 (NONDISCRIMINATION) delete in its entirety and replace with the following: 39.0 NONDISCRMINATION, EQUAL OPPORTUNITY AND EQUAL ACCESS 39.1 The City, in connection with any services or other activities under this Agreement, shall not in any way discriminate against any person on the grounds of race, color, religion, sex, national origin, age, disability, political affiliation or belief. The City shall include this clause in all of its Subcontracts. 39.2 The City shall comply with requirements of the Housing and Urban Development Equal Access Rule at 24 C.F.R. Part 5, Final Rule 5863, to ensure equal access to housing and services regardless of gender identity. 3. Paragraph 47.0 (PROPERTY) delete in its entirety and replace with the following: 47.0 PROPERTY 47.1 Any County property furnished or purchased pursuant to the terms of this Agreement shall be utilized, maintained, repaired, and accounted for in accordance with instructions furnished by the County, and title to all such property shall revert to the County upon the expiration or termination of this Agreement. The costs to repair such property are the responsibility of the Developr within the limits budgeted in this Agreement. 47.2 Any Developer property furnished or purchased pursuant to the terms of the Agreement shall be utilized, Contract No. C-22-21-035-X-01 Amendment No. 1 Newtown Community Development Corporation Page 5 of 15 maintained, repaired, and accounted for by the Developer. Repair costs of such property shall be the responsibility of the Developer. 4. Paragraph 50.0 (EMPLOYMENT DISCLAIMER) delete in its entirety and replace with the following: 50.0 EMPLOYMENT DISCLAIMER 50.1 Any County property furnished or purchased pursuant to the this Agreement is not intended to constitute, create, give rise to, or otherwise recognize a joint venture agreement, partnership, or other business association or organization of any kind between the Parties, and the rights and obligations of the Parties shall be only those expressly set forth in this Agreement. 50.2 The Developer agrees that no individual performing under this Agreement on behalf of the Developer may be considered a County agent, employee, or representative and that no rights of County civil service, County retirement, or County personnel rules shall accrue to or apply to any such individual. The Developer shall have total responsibility for all salaries, wages, bonuses, retirement, withholdings, workers’ compensation, occupational disease compensation, unemployment compensation, other employee benefits, and all taxes and premiums appurtenant thereto concerning such individuals and the Developer shall indemnify, defend, and hold harmless the County with respect thereto. 50.3 The County agrees that no individual performing under this Agreement on behalf of County may be considered a Developer agent, employee, or representative and that no rights of the Developer civil service, the Developer retirement, or the Developer personnel rules shall accrue to or apply to any such individual. The County shall have total responsibility for all salaries, wages, bonuses, retirement, withholdings, workers’ compensation, occupational disease compensation, unemployment compensation, other employee benefits, and all taxes and premiums appurtenant thereto concerning such individuals and the County shall indemnify, defend and hold harmless the Developer with respect thereto. 5. Paragraph 51.0 (CERTIFICATION REGARDING DEBARMENT, SUSPENSION, INELIGIBILITY AND VOLUNTARY EXCLUSION) delete in its entirety and replace with the following: Contract No. C-22-21-035-X-01 Amendment No. 1 Newtown Community Development Corporation Page 6 of 15 51.0 CERTIFICATION REGARDING DEBARMENT, SUSPENSION, INELIGIBILITY AND VOLUNTARY EXCLUSION 51.1 The undersigned, by signing this Agreement, represents that he/she has the authority to bind the Developer to the terms of this Certification. The Developer, as the primary participant in accordance with 2 C.F.R. Part 180, certifies to the best of its knowledge and belief that it and its principals: 51.1.1 Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any federal department or agency; 51.1.2 Have not within a 3-year period preceding the Start Date of this Agreement, been convicted of or had a civil judgment rendered against them for (1) the commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (federal, State, or local) transaction or contract under a public transaction; (2) the violation of any federal or State antitrust statutes or (3) the commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; 51.1.3 Are not presently indicted or otherwise criminally or civilly charged by a governmental entity (federal, state, or local) with the commission of any of the offenses enumerated in Sub- subparagraph 50.1.2 above; and 51.1.4 Have not, within a three-year period preceding this Start Date of this Agreement, had one or more public transactions (federal, state, or local) terminated for cause or default. 51.2 The Developer agrees to include, without modification, this clause in all lower tier covered transactions (i.e., transactions with Subcontractors) and in all solicitations for lower tier covered transactions related to this Agreement. 6. Paragraph 52.0 (CONTRACTOR EMPLOYEE WHISTLEBLOWER RIGHTS AND REQUIREMENT TO INFORM EMPLOYEES OF WHISTLEBLOWER RIGHTS) delete Subparagraph 52.3 and replace with the following: Contract No. C-22-21-035-X-01 Amendment No. 1 Newtown Community Development Corporation Page 7 of 15 52.3 The Developer shall insert the substance of this clause, including this Paragraph 52.0, in all subcontracts over the simplified acquisition threshold ($250,000 as of June 2021). 7. Add the following new paragraph: 55.0 FORCE MAJEURE 55.1 Neither Party shall be liable for failure of performance, nor incur any liability to the other Party on account of any loss or damage resulting from any delay or failure to perform all or any part of this Agreement if such delay or failure is caused by events, occurrences, or causes beyond the reasonable control and without negligence of the Parties. Such events, occurrences, or causes will include Acts of God/Nature (including fire, flood, earthquake, storm, hurricane, or other natural disaster), war, invasion, act of foreign enemies, hostilities (whether war is declared or not), civil war, riots, rebellion, revolution, insurrection, military or usurped power or confiscation, terrorist activities, nationalization, government sanction, lockout, blockage, embargo, labor dispute, strike, pandemic, and interruption or failure of electricity or telecommunication service. 55.2 Each Party, as applicable, shall give the other Party notice of its inability to perform and particulars in reasonable detail of the cause of the inability. Each party must use best efforts to remedy the situation and remove, as soon as practicable, the cause of its inability to perform or comply. 55.3 The Party asserting Force Majeure as a cause for non- performance shall have the burden of proving that reasonable steps were taken to minimize delay or damages caused by foreseeable events, all non- excused obligations were substantially fulfilled, and the other Party was timely notified of the likelihood or actual occurrence that would justify such an assertion, so that other prudent precautions could be contemplated. E. Revise Section 2 (Special Provisions) to address the following paragraphs: 1. Paragraph 11.0 (ADMINISTRATIVE REQUIREMENTS) delete Sub- Sub-Sub-Subparagraph 11.1.2.1.11 and replace with the following: 11.1.2.1.11 Documenting compliance with Section 3 of the Housing and Urban Development Act of 1968 and implementing regulations at 24 C.F.R. § 75. Contract No. C-22-21-035-X-01 Amendment No. 1 Newtown Community Development Corporation Page 8 of 15 2. Paragraph 14.0 (SUBCONTRACTS AND VENDORS) delete Subparagraph 14.5 and replace with the following: 14.5 Section 3 of the Housing and Urban Development Act of 1968 – The Developer shall include the Section 3 clause in every Subcontrct and shall take appropriate action pursuant to the Subcontract upon a finding tht a Subcontractor is in violation of regulations issued by HUD. The Developer shall not Subcontract with any entity where the Developer has notice or knowledge tht the entity has been found in violation of the regulations under 24 C.F.R. § 75. The Developer has the responsibility of determining Section 3 eligibility. 3. Paragraph 18.0 (GENERAL CONDITIONS), delete Subparagraph 18.1 in its entirety and replace with the following: 18.1 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 Developer. 18.1.1 Administrative Change Orders may address any of the following areas: 18.1.1.1 Modifications to the Project timeline if the last day of the Project timeline is within the Agreement term; 18.1.1.2 Modifications to Budget line items if the Agreement Amount remains unchanged; 18.1.1.3 Modifications required by federal, state, or County regulations, ordinances, or policies; 18.1.1.4 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 18.1.1.5 Modifications to Administrative requirements such as changes in reporting periods, frequency of reports, Contract No. C-22-21-035-X-01 Amendment No. 1 Newtown Community Development Corporation Page 9 of 15 or report formats required by HUD or by local regulations, policies, or requirements. 18.1.2 Addenda: 18.1.2.1 The Developer and the Administrator shall submit to the County, an Addendum when each property has been identified and will be acquired by the Developer and the Administrator for rehabilitation activities under this Agreement; and 18.1.2.2 All Addenda shall be integrated into the Agreement. F. 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 Eight Hundred Seventy-Four Thousand Two Hundred and Thirteen Dollars and Twenty Six Cents ($874,213.26) subject to the terms of this Agreement and availability of funding. III. 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 executed by the Parties. IV. The Parties hace 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 following page Contract No. C-22-21-035-X-01 Amendment No. 1 Newtown Community Development Corporation Page 10 of 15 IN WITNESS THEREOF, the Parties have signed this Amendment: APPROVED BY: MARICOPA COUNTY Chairman, Board of Supervisors Date APPROVED BY: NEWTOWN COMMUNITY DEVELOPMENT CORPORATION (Developer) Stephanie Brewer Date Executive Director Attested to: _ Clerk of the Board Date 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-22-21-035-X-01 Amendment No. 1 Newtown Community Development Corporation Page 11 of 15 MARICOPA COUNTY HOME Investment Partnerships Program Program Year 2021 DUNS Number: 022225143 Project: Urban County Land Trust Program Type of Property: Acquisition and Rehabilitation of Three Single Family Houses 1.0 FUNDING UC HOME PY 2021 Program Income UC HOME PY 2017 Entitlement Other Resources Total Budget $295,873.41 $38,339.85 $650,700.00 $984,913.26 2.0 SCOPE OF WORK 2.1 Project Purpose: The Urban County Land Trust Program will create homeownership opportunities for low-income households in the Maricopa Urban County. The Urban County is defined as the cities/towns of Buckeye, Cave Creek, El Mirage, Fountain Hills, Gila Bend, Guadalupe, Litchfield Park, Tolleson, Wickenburg, and Youngtown, and all unincorporated areas of Maricopa County. Homeownership is rated as a high priority in the Consolidated Plan. The CLT program ensure the property remains affordable to future eligible low-income buyers for a minimum of 99 years. 2.2 Project Description: The Developer will acquire and rehabilitate three (3) scattered-site, single-family houses. 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 Developer's Community Land Trust Program (CLT) will be executed before funding is made available regarding each property. Properties will be acquired using the Developer’s line of credit, following completion of environmental review requirements. 2.3 Project Beneficiaries: Three (3) first-time homebuyers at or below 80% of the area median income (AMI) will benefit from this Project. Beneficiaries’ income eligibility will be verified by the Developer’s staff and will comply with 24 C.F.R § 92.203(d)(1). Eligible buyers 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. Contract No. C-22-21-035-X-01 Amendment No. 1 Newtown Community Development Corporation Page 12 of 15 2.4 Legal documents: In addition to a Deed of Trust (where the Developer is listed as the Beneficiary) and Promissory Note, a Memorandum of Ground Lease, which includes a Right of First Refusal, shall be executed and recorded. The eligible homebuyer will purchase only the improvements to the land (the home) and enter into a 99-year Ground Lease with the Developer. The CLT Ground Lease shall contain provisions that require that the housing is to be used as the buyer's principal residence, restrict resale or transfer of the property to eligible low-income buyers (HOME Resale provisions), limit the sale price of the housing to ensure future affordability, and contain a shared appreciation formula. Upon sale to an eligible buyer, a Declaration of Affirmative Land Use Restrictions (LURA) will be executed which contains the affordability restrictions on the residential improvements to the property. The Period of Affordability is 15 years from the date that the completion report is entered into HUD’s Integrated Disbursement and Information System (IDIS). 2.5 Shared Appreciation: The shared appreciation formula conforms to the Maricopa HOME Consortium’s 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. This provision is contained within the Ground Lease. 2.6 Homeownership Counseling: Buyers will be required to complete an approved homebuyer education class, homeownership counseling, and a CLT orientation. The CLT orientation will explain in detail the ground lease, resale restrictions, shared equity, and all other provisions of the CLT program. 2.7 Project Staff: The Developer shall maintain staff qualified to perform the duties of the project. The Developer shall immediately notify the County regarding any changes in staff committed to the project. The Developer will be responsible for all communications with the Maricopa HOME Consortium, including performance reports. In addition, any complaints will be the responsibility of the Developer. 2.8 Subcontractors: The Developer will oversee every aspect of the project. This oversight includes, but is not limited to, day-to-day operations; preparing budgets; managing the budget, timelines, and change orders; issuing a Request for Proposal and selecting the general contractor and Subcontractors. The Developer shall select Subcontractors in accordance with the Administrative Requirements of this Agreement. The Developer shall contract with responsible and qualified Subcontractors to perform the Contract No. C-22-21-035-X-01 Amendment No. 1 Newtown Community Development Corporation Page 13 of 15 duties of the project. The Developer shall verify the qualifications of each Subcontractor through license verification, references, and SAM.gov. 2.9 Rehabilitation: 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 Developer must arrange for a final inspection with Maricopa Human Services to 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. 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 4.0 LOGIC MODEL: PERFORMANCE INDICATORS OUTPUTS INPUTS/ RESOURCES ACTIVITIES PARTICIPATION OUTCOMES OBJECTIVES Development Staff, Funding and Contractors Acquire and rehabilitate three (3) units of Affordable Housing to be held in the CLT Three (3) Households Increased affordable housing for a low- to moderate- income family. Increased homeownership. Improved neighborhoods and quality of life. Decent and affordable housing Contract No. C-22-21-035-X-01 Amendment No. 1 Newtown Community Development Corporation Page 14 of 15 5.0 PERFORMANCE REPORTING GOALS/TIMELINE OF ACTIVITIES MILESTONES: Tasks to be Performed COMPLETION DATE Application/market study 02/03/2021 Environmental Review approval 03/31/2024 Acquisition of properties 04/31/2024 RFP for rehabilitation activities 04/31/2024 Homeownership counseling/buyer preparation 04/31/2024 Rehabilitation 04/31/2024 MCHSD Final inspection 05/15/2024 Sale of Units 05/30/2024 Homebuyer financing secured 04/31/2024 Expend Proceeds 05/30/2024 Final Close-out /Project Completion Form 06/30/2024 Any change to the Timeline will need to be approved by the County. 6.0 ACTIVITY BUDGET SUMMARY: ACTIVITY HOME FUNDS OTHER RESOURCES TOTAL ACTIVITY BUDGET Acquisition 334,213.26 386,100.00 720,313.26 Rehabilitation 150,000.00 150,000.00 Developer Fee 69,600.00 69,600.00 Closing costs 45,000.00 45,000.00 TOTALS $334,213.26 $650,700 $984,913.26 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. 7.0 Match: The Match commitment must equal 25% of the HOME Entitlement funds. Documentation is due at the time of request for payment(s). Match Logs must be submitted annually by June 30th of each year. HOME Funds requiring match SOURCE TOTAL PY2017 Federal Home Loan Bank- WISH funds $9,585 * Per CARES Act waiver the Developer will not be obligated to match HOME funds expended in IDIS by September 30, 2022. Contract No. C-22-21-035-X-01 Amendment No. 1 Newtown Community Development Corporation Page 15 of 15 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). 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 PROGRAM INCOME: 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 retained and expended by the Developer for the acquisition and rehabilitation of additional properties under this Agreement. Program Income shall be tracked by the Developer and reported to the County. The County will receipt the funds in IDIS and the Developer shall submit a Request for Reimbursement to the County to draw Program Income funds in IDIS. 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.