AVONDALE-TRELLIS AMENDMENT NO. 1.PDF
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Contract No. C-22-20-055-3-01 Amendment No. 1 Page 1 of 7 AMENDMENT TO THE AGREEMENT BETWEEN MARICOPA COUNTY ADMINISTERED BY ITS HUMAN SERVICES DEPARTMENT AND TRELLIS COMMUNITY DEVELOPMENT A COMMUNITY HOUSING DEVELOPMENT ORGANIZATION AND CITY OF AVONDALE I. Maricopa County (“County”) administered by its Human Services Department, Trellis Community Development, a Community Housing Development Organization (“CHDO”), and the City of Avondale (“City”) entered into a financial agreement (“Agreement”), which was fully executed on or about July 13, 2020. The purpose of the Agreement is for the CHDO, acting in the capacity of a developer, to construct one (1) single-family home for a low-income household in the City. The County provided the CHDO with $155,000 in 2019 HOME Investment Partnerships Program (HOME) funds from the U.S. Department of Housing and Urban Development (HUD). The County, CHDO, and City collectively are referred to here as the “Parties.” II. The Parties agree to enter into this Amendment No. 1 to the Agreement as follows: A. Add an additional “2020 Work Statement” for the CHDO to construct two (2) new single-family homes for low-income- families and provide homebuyer assistance to the qualified buyers. All work performed or costs incurred or expended under the 2020 Work Statement shall be reimbursable through September 30,2023. B. The County shall provide the CHDO with reimbursement in an amount not to exceed $290,000 in HOME funding for the work to be performed under the 2020 Work Statement. C. Upon approval of Amendment No. 1, the total reimbursement under the Agreement pertaining to the 2019 and 2020 Work Statements shall be increased to a not to exceed amount of $445,000. D. Section 4 (Compensation), Paragraph 4.0 (Reimbursement), shall be amended to provide for total financial assistance under the 2019 and 2020 Work Statements in a not to exceed amount of $445,000. E. Add to Section 1 (General Provisions) the following new paragraphs: 52.0 WRITTEN CERTIFICATION UNDER 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 CHDO and the Administrator certify they are not currently engaged in, and agree for the duration of this Agreement to not engage in, a boycott of goods or 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. 53.0 SURVIVAL The indemnification, hold harmless, defense, and non-liability provisions of this Agreement shall have full force and effect notwithstanding any other provisions in this Agreement and shall survive the termination or expiration of this Agreement. Contract No. C-22-20-055-3-01 Amendment No. 1 Page 2 of 7 III. The foregoing paragraph contains all the changes made by this Amendment No. 1. All other terms and conditions of the original Agreement remain the same and in full force and effect as approved. IN WITNESS, the Parties have approved and signed this Amendment No. 1: APPROVED BY: CITY OF AVONDALE APPROVED BY: MARICOPA COUNTY ___________________________________ Charles A. Montoya, City Manager Date ____________________________________ Chairman, Board of Supervisors Date Attested To: ___________________________________ Marcella Carrillo, City Clerk Date Attested To: ____________________________________ Fran McCarroll, Clerk of the Board Date IN ACCORDANCE WITH A.R.S. §§ 9-240 and 11-952, THIS AMENDMENT NO. 1 HAS BEEN REVIEWED BY THE UNDERSIGNED ATTORNEY WHO HAS DETERMINED THIS AMENDMENT IS PROPER IN FORM AND WITHIN THE POWERS AND AUTHORITY GRANTED TO THE CITY UNDER THE LAWS OF THE STATE OF ARIZONA. APPROVED AS TO FORM: ___________________________________ Nicholle Harris, City Attorney 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 THIS AMENDMENT 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 APPROVED BY: TRELLIS COMMUNITY DEVELOPMENT, an Arizona nonprofit corporation (CHDO) _____ Patricia Duarte Garcia Date President, CEO, and Executive Director Signature and execution authorized by corporate resolution number __________ dated __________, 2020. Contract No. C-22-20-055-3-01 Amendment No. 1 2020 Work Statement Page 3 of 7 MARICOPA COUNTY HOME Investment Partnerships Program Program Year 2020 DUNS Number CHDO: 08-066-8072 DUNS Number Administrator: 00-248-6884 Project: New construction at El Mirage Road and Elwood Street Type of Property: Single Family Residential 1.0 FUNDING CHDO PY2020 HOME FUNDS MATCH OTHER RESOURCES TOTAL BUDGET $290,000 $72,500 $373,264 $735,764 2.0 SCOPE OF WORK 2.1 Project Description: In June of 2006, Trellis acquired property located at the northwest corner of El Mirage Road and Elwood Street in the City of Avondale, Arizona. In 2015, Trellis split the property into three (3) south facing parcels, each accessed from Elwood Street. Lots 1 and 2 are 80 feet wide and 85 feet deep (6,800 SF). Lot 3 is 85 feet deep and 88 feet wide (7,480 SF). Trellis plans to construct energy efficient homes on all three lots. Each home will be constructed with a different building material and technique: traditional 2” x 6” framing; SIPS system; and either T-Stud or ICF. The site of this project is: 12310 West Elwood Street, Avondale, Arizona 85323. The CHDO has secured partnerships with SRP, Mitsubishi, and the City of Avondale. Additional partners are actively being pursued. The partnership with SRP will provide data (for energy efficiency monitoring) over a pre-determined timeframe to demonstrate which type of building material provides the best efficiency versus cost of construction and the monthly burden to the homeowner. The CHDO will construct the remaining two (2) of the three (3) new single-family homes on the interior lots (Lots 1 and 2 ). Trellis has designed a single-story, 1,500 - 1,600 SF, 3 -bedroom, 2.5-bathroom home, which is EnergyStar, Indoor Air Quality Plus-V3 with an anticipated HERS Index score of between 50-65. The homes are fully accessible and conserve water, reduce utility demand and maintenance costs, and foster a healthy living environment. 2.2 Project Purpose: The project will create a homeownership opportunity for a low- to moderate-income household that is rated as a high priority in the Consolidated Plan. The Trellis homes designed for these Avondale lots are consistent with the City’s General Plan goals for residents to feel a sense of community and be compatible with the residential character of the neighborhood. 2.3 Project Beneficiaries: Two first-time homebuyer at or below 80% of the area median income. The CHDO will secure affordability deed restrictions. Contract No. C-22-20-055-3-01 Amendment No. 1 2020 Work Statement Page 4 of 7 Beneficiaries’ income eligibility will be verified by the CHDO staff and will comply with 24 C.F.R §. 92.203(d)(1). Eligible buyers will be required to complete an approved homebuyer education class and homeownership counseling. Down payment assistance (DPA) will be provided to buyers that qualify, up to 10%, or $14,500 of the HOME funding award. In addition, other DPA sources (for example, LIFT and WISH) will be based on the buyer’s eligibility. 2.4 Project Staff: The CHDO shall maintain staff qualified to perform the duties of the project. The CHDO shall immediately notify the Administrator and the County regarding any changes in staff committed to the CHDO project. The Administrator and the County reserve the right to review the qualifications of new staff committed to the CHDO project after the execution of this Agreement. The CHDO will be responsible for all communications with the City of Avondale and the Maricopa HOME Consortium, providing all updates and as needed reporting. In addition, any complaints will be the responsibility of Trellis. 2.5 Subcontractors: The CHDO, as the developer on this project, 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. 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. 2.6 Project Affordability: A Deed of Trust will be recorded with the City of Avondale as the beneficiary, which will ensure that the City is notified in the event the owner attempts to refinance or transfer the property. 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-22-20-055-3-01 Amendment No. 1 2020 Work Statement Page 5 of 7 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 Trellis staff, funding, contractors New construction Two households Increased affordable housing for two low- income families. Increased homeownership. Improved neighborhoods and quality of life. Decent housing. 5.0 PERFORMANCE REPORTING GOALS/TIMELINE OF ACTIVITIES MILESTONES: Tasks to be Performed COMPLETION DATE Application/market study 12/2019 Execute third party agreement with County and City of Avondale for HOME funds 11/18/2020 Development Plan Approved-City of Avondale 12/2020 Environmental Review approval 11/2020 Submit complete application for construction permits 1/2021 RFP for construction activities 12/2020 Homeownership counseling/buyer preparation 5/2021 Construction of project 8/2021 Sale of Unit (Pre-sale and during construction) 9/2021 Homebuyer financing secured 9/2021 Certificate of Occupancy 8/2021 Final Close-out /Project Completion Form 12/2021 Any change to the Timeline will need to be approved by the County. Contract No. C-22-20-055-3-01 Amendment No. 1 2020 Work Statement Page 6 of 7 6.0 ACTIVITY BUDGET SUMMARY: ACTIVITY PY2020 HOME FUNDS MATCH* OTHER RESOURCES TOTAL ACTIVITY BUDGET Acquisition $36,668 $36,668 Site Demolition Development Costs $261,000 $313,264 $574,264 Professional Fees $25,000 $60,000 $85,000 Construction Interest and fees Down Payment Assistance $29,000 $10,832 $39,832 TOTALS $290,000 $72,500 $373,264 $735,764 *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: FORM OF MATCH SOURCE AMOUNT Cash- Property Acquisition Trellis $36,668 Cash Wish Funds $10,832 Reduced Fees Architect $25,000 TOTAL $72,500 * Per CARES Act waiver the CHDO will not be obligated to, nor will it provide, match for HOME funds drawn in IDIS between October 1, 2019 and September 30, 2021. 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 Attachment 3 of the 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 Contract No. C-22-20-055-3-01 Amendment No. 1 2020 Work Statement Page 7 of 7 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: 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.