IGA AMENDMENT 1 WITH CITY OF AVONDALE RE AFFORDABLE HOUSING.PDF
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C-22-24-016-X-01 Amendment No. 1 City of Avondale Page 1 of 4 AMENDMENT NO. 1 TO THE INTERGOVERNMENTAL AGREEMENT BETWEEN MARICOPA COUNTY ADMINISTERED BY ITS HUMAN SERVICES DEPARTMENT AND THE CITY OF AVONDALE I. The City of Avondale (“City” or “Subrecipient”) and Maricopa County (“County”) administered by its Human Services Department entered into an Agreement on or about October 3, 2023, to increase affordable housing availability in the Avondale area. The County provided the City with $2,750,000 in ARPA funds under Assistance Listing Number 21.027 for these projects. The City shall directly or through an eligible subrecipient or developer, construct and develop affordable homes to be sold to low-income homebuyers. The Agreement term is September 13, 2023, through December 31, 2025. The County and the City may be referred to individually as “Party” or collectively as “Parties.” II. The Parties now agree to modify the Agreement through this Amendment No. 1 to address the following. A. Revise Paragraph 9.0 (Compensation), Subparagraph 9.1, by removing in its entirety and replacing with the following: 9.1 This Agreement is on a cost reimbursement basis. Subrecipient shall submit monthly invoices to the County for all costs associated with the projects. This project is presumptively eligible as a use of ARPA funds as it meets the requirements of the HOME program (SLFRF Final Rule FAQs 2.14) and is being held to the HOME eligible project cost requirements. Per HUD CPD Notice 15-11 Section VII.D, Developers and owners may financially benefit from HOME-assisted projects, including via the use of reasonable Developer fees. Developer fees “are charged by the developer as a part of the project cost to compensate for the risk, time, and effort to build and sell or lease the property.” As such, agreed-upon Developer fees are an eligible project cost, and may be included in a claim for reimbursement. The Developer Fees will be paid out based on the amount of work completed or funds expended on the project. B. Revise Exhibit A (Legacy Avondale Infill Housing Phase III Statement of Work), in the following Paragraphs: Paragraph 1.3 (Funding Sources), Subparagraphs 1.3.1, 1.3.2, and 1.3.4 by removing in their entirety and replacing with the following: 1.3.1 $1,750,000 – ARPA funds for construction hard costs, predevelopment, infrastructure, and soft construction costs, project management fees, and developer fees C-22-24-016-X-01 Amendment No. 1 City of Avondale Page 2 of 4 1.3.2 $407,000 – NSP Program Income to fund an environmental assessment, appraisals, market study, ALTA survey, architectural and engineering fees, and construction related expenses, including a portion of the developer fee. 1.3.4 The total project budget is: $2,953,326. Paragraph 3.4 (Program Income), by removing in its entirety and replacing with the following: 3.4 Program Income – Program Income will be defined as earnings from the sale of the homes. Initial Program Income earned will be used to pay any cost overruns. All other Program Income will be retained by the City of Avondale and reinvested into future CLT homes. The subrecipient will be required to submit an annual certification to document program income activity. Paragraph 5.0 (Budget), by removing in its entirety and replacing with the following: 5.0 Budget C. Revise Exhibit B (Avondale Infill Housing Program Statement of Work), in the following Paragraphs: Paragraph 1.3 (Funding Sources), Subparagraph 1.3.1, by removing in its entirety and replacing with the following: 1.3.1 $1,000,000 – ARPA funds for construction hard costs, predevelopment, infrastructure, and soft construction costs, including down payment assistance, and developer fees. Paragraph 3.4 (Program Income), by removing in its entirety and replacing with the following: 3.4 Program Income – Program Income will be defined as earnings from the sale of the homes. Initial Program Income earned will be used to pay any cost overruns. If the homes are included in a community land trust, all Fund Sources Sources Total Maricopa County – ARPA Funds $1,750,000 Total $1,750,000 Uses General Development Costs ARPA Funds Construction Hard Costs $1,260,000 Predevelopment, Infrastructure, and Soft Costs $200,000 Project Management Fees $100,000 Developer’s Fee Developer’s Fee $190,000 Total $1,750,000 C-22-24-016-X-01 Amendment No. 1 City of Avondale Page 3 of 4 Program Income will be retained by the City of Avondale and reinvested into future CLT homes. If the homes are not included in a CLT, eighty- three percent (83%) of program income generated through completion of this activity will be recoverable by Maricopa County to reallocate to one or more future affordable housing projects. The remaining seventeen percent (17%) will be retained by the City of Avondale. Program income payments shall be made to Maricopa County within sixty (60) days after receipt by the subrecipient. The subrecipient will be required to submit an annual certification to document program income activity. Paragraph 5.0 (Budget), by removing in its entirety and replacing with the following: 5.0 Budget III. Under A.R.S. §38-511, the Parties may cancel this Agreement without penalty of further obligation within three years after execution of this Agreement if any person significantly involved in initiating, negotiating, securing, drafting, or creating this Agreement on behalf of the County is, at any time while this Agreement or any extension is in effect, an employee or agent of any other party to the Agreement in any capacity or consultant to any other party of this Agreement with respect to the subject matter of this Agreement. IV. 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 approved, amended and executed by the Parties. V. The Parties have authorized the undersigned to execute this Amendment No. 1 on their behalf. [Signatures contained in the following page] Fund Sources Sources Total Maricopa County – ARPA Funds $1,000,000 Total $1,000,000 Uses General Development Costs ARPA Funds Construction Hard Costs $630,000 Acquisition, Predevelopment, Infrastructure, and Soft Costs including Down Payment Assistance $220,000 Developer’s Fees Developer’s Fees $150,000 Total $1,000,000 C-22-24-016-X-01 Amendment No. 1 City of Avondale Page 4 of 4 IN WITNESS, the Parties have approved and signed this Amendment No. 1: APPROVED BY: CITY OF AVONDALE APPROVED BY: MARICOPA COUNTY ___________________________________ Mayor Date ____________________________________ Jack Sellers, Chairman Date Board of Supervisors Attested To: ___________________________________ City Clerk Date Attested To: ____________________________________ Juanita Garza Date Clerk of the Board IN ACCORDANCE WITH A.R.S. §§ 9-240, 9- 500.11, 11-952, AND 46-241, ET SEQ., 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 THE CITY OF AVONDALE UNDER THE LAWS OF THE STATE OF ARIZONA. APPROVED AS TO FORM: BY: ________________________________ Attorney for the City 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: BY: _________________________________ Deputy County Attorney Date