GUADALUPE CDC AMENDMENT NO. 1.PDF
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Contract No. C-22-21-061-X-01 Amendment No. 1 Page 1 of 7 Guadalupe Community Development Corporation AMENDMENT No. 1 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 (“Developer”) entered into a financial Developer Agreement (“Agreement”) on or about November 23, 2020. The purpose of the Agreement is to provide funding to develop a single-family, affordable home for sale to a low-income family in Guadalupe. The County provided GCDC with $260,000 in 2020 HOME Investment Partnerships Program (HOME) funds from the U.S. Department of Housing and Urban Development (HUD). All work performed or costs incurred or expended shall be reimbursable through August 31, 2024. The County and the GCDC may be referred to individually as the “Party” and collectively referred to as the “Parties.” II. The Parties agree to enter into this Amendment No. 1 to amend the Agreement as follows: A. Extend the Agreement termination date from August 31, 2024 through September 30, 2025. B. Add an additional Work Statement hereinafter referred to as “2021 Work Statement”, attached and incorporated into the Agreement. The 2021 Work Statement is for the Developer to develop a single-family, affordable home for sale to a low-income family in Guadalupe. C. The County shall provide Developer with $250,000 for the 2021 Work Statement activities. The funding for Amendment No. 1 is provided by HOME Investment Partnerships Program (HOME) and U.S. Department of Housing and Urban Development (HUD) funds, CFDA No.14.239. All work performed or costs incurred or expended shall be reimbursable through September 30, 2025. D. The Agreement funding amount shall be increased from $260,000 to $510,000. E. Revise Section 1 (General Provisions) to add the following 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, Contract No. C-22-21-061-X-01 Amendment No. 1 Page 2 of 7 Guadalupe Community Development Corporation 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. F. Revise Section 2 (Special Provisions) by deleting Paragraph 18.0 (General Conditions) and replacing it with the following: 18.0 GENERAL CONDITIONS 18.1 Administrative Change orders - The Chairman of the Board of Supervisors is authorized upon the recommendation of the Human Services Department Director and Legal Counsel to make changes within the general scope of the Agreement on behalf of the County through Administrative Change Orders. Administrative Change Orders shall be approved and fully executed by the Chairman of the Board of Supervisors and the Develooper. 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; and 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. 18.1.2 It is the responsibility of the Developer to ensure the latest documents are consulted and followed. G. Revise Section 4 (Compensation) by deleting Paragraph 3.0 (Timeliness) and replacing it with the following: 3.0 TIMELINESS 3.1 The Developer shall submit monthly requests for reimbursement by the 15th calendar day of the month following the month close out. 3.2 The Developer shall submit the final reimbursement for each Work Statement not later than 15 calendar days after the reimbursable period ends. Contract No. C-22-21-061-X-01 Amendment No. 1 Page 3 of 7 Guadalupe Community Development Corporation 3.3 The Developer shall submit to the County a Request for Reimbursement of all expenditures within the same fiscal year in which the expenditures are incurred. The fiscal year runs July 1st through June 30th and all Requests for Reimbursement shall be submitted no later than July 30th for the preceding fiscal year. 3.4 All requests for reimbursements shall be submitted to: HSDFINANCE@MARICOPA.GOV. H. Revise Section 4 (Compensation) by deleting Paragraph 4.0 (Reimbursement) and replacing it with the following: 4.0 REIMBURSEMENT The County shall provide financial assistance in an amount not to exceed Five Hundred ten thousand dollars and zero cents ($510,000) subject to the terms of this Agreement and availability of funds. III. Section II above contains all the changes made by this Amendment No. 1. All other terms and conditions of the Agreement shall remain the same and in full force and effect as approved. IV. 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 both Parties. IN WITNESS THEREOF, the Parties have signed this Amendment No. 1: FOR GUADALUPE COMMUNITY DEVELOPMENT CORPORATION: FOR MARICOPA COUNTY: ___________________________________ Steve Langstaff Date Executive Director ____________________________________ Jacke Sellers Date Chairman, Board of Supervisors Attestation: ____________________________________ 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 THIS AMENDMENT NO. 1 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-22-21-049-X-01 2021 Work Statement Page 4 of 7 Guadalupe Community Development Corporation MARICOPA COUNTY HOME Investment Partnerships Program Program Year 2021 2021 Work Statement GCDC DUNS Number : 015750361 Project: New construction at 5933 E Calle Milagros B Type of Property: Single Family Residential 1.0 FUNDING: Maricopa County Program Income HOME PY2021 GCDC Project Proceeds TOTAL BUDGET $250,000 $38,300 $288,300 2.0 SCOPE OF WORK: 2.1 Project Description: In-fill housing of single-family, new construction on the currently vacant lot at 5933 E. Milagros-B, 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 1,500 square feet. The home will be 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- 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. 2.3 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 $45,500 of the HOME funding award. In addition, other funds (for example, SHOP, LIFT, and WISH) may be available to the buyer, based on eligibility. GCDC will assist the buyer in maximizing their resources. 2.4 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. 2.5 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 Contract No. C-22-21-049-X-01 2021 Work Statement Page 5 of 7 Guadalupe Community Development Corporation perform the duties of the project. GCDC shall verify the qualifications of each subcontractor through license verification, references, and SAM.gov. 2.6 Period of Affordability: Housing assisted under this Amendment will meet the affordability requirements of 24 C.F.R. 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. 2.7 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. 3.0 OBJECTIVES AND OUTCOMES: OBJECTIVE OUTCOMES AVAILABILITY/ ACCESSIBILITY AFFORDABILITY SUSTAINABILITY DECENT HOUSNG 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 GCDC staff, funding, private lenders, contractors New construction One household Increased affordable housing for a low- income family. Improved neighborhoods and quality of life. Decent housing. Contract No. C-22-21-049-X-01 2021 Work Statement Page 6 of 7 Guadalupe Community Development Corporation 5.0 PERFORMANCE REPORTING GOALS/TIMELINE OF ACTIVITIES: MILESTONES: Tasks to be Performed COMPLETION DATE Application/market study 2/3/2020 Execute Amendment with Maricopa County for HOME funds 9/30/2021 Development Plan Approved-Town of Guadalupe 9/1/2021 Environmental Review approval 9/31/2021 Submit complete application for construction permits 12/01/2021 RFP for construction activities 1/15/2022 Homeownership counseling/buyer preparation 6/15/2022 Construction of project 1/15/2022 Sale of Unit (Pre-sale and during construction) 7/30/2022 Execute Homebuyer Recapture Agreement 8/30/2022 Homebuyer financing secured 9/1/2022 Final inspection by MCHSD 10/15/2022 Certificate of Occupancy 10/15/2022 Final Close-out /Project Completion Form 11/30/2022 Any change to the Timeline will need to be approved by the County. 6.0 SCHEDULE FOR PAYMENT OF DEVELOPMENT FEES: MILESTONES PERCENTAGE OF 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% 7.0 ACTIVITY BUDGET SUMMARY: ACTIVITY MARICOPA COUNTY PROGRAM INCOME HOME FUNDS PROJECT PROCEEDS* TOTAL ACTIVITY BUDGET Acquisition Lot Site Demolition Development Costs 230,000 Developer fees 20,000 Estimated Construction Contingency** $38,300 TOTALS $250,000 $38,300 $288,300 *Remaining Project Proceeds from Maricopa County contracts C22-16-029-3-01 and C- 22-17-052-3-01. 7.1 A total of $2,500 will be withheld as retainage from the total amount of HOME funds obligated to each activity/address. $1,500 may be reimbursed upon completion of construction (Certificate of Occupancy) and a signed purchase contract with a qualified buyer. The final $1,000 will be reimbursed when a completion form is submitted by GCDC to the County. Contract No. C-22-21-049-X-01 2021 Work Statement Page 7 of 7 Guadalupe Community Development Corporation 8.0 SALES PRICE: 8.1 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% 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). 8.2 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. 9.0 DISPOSITION OF SALES PROCEEDS: 9.1. 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. 9.2. A portion of the sales proceeds may be used to provide the eligible buyer with down payment assistance, including closing costs and principal reduction. 9.3. 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. 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, 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.