Resolution No. 5700 Maricopa HOME Consortium Amendment 4
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Contract No. C-22-17-048-3-04 Amendment No. 4 Page 1 of 21 AMENDMENT No. 4 TO THE INTERGOVERNMENTAL AGREEMENT BETWEEN MARICOPA COUNTY ADMINISTERED BY ITS HUMAN SERVICES DEPARTMENT AND CITY OF CHANDLER I. Maricopa County (“County”) administered by its Human Services Department and the City of Chandler (“City”) entered into a financial Intergovernmental Agreement (“Agreement”) on or about February 15, 2017. The purpose of the Agreement is for the City to provide 1) single-family owner-occupied housing reconstruction and, 2) tenant based rental assistance. The County provided the City with $299,853 in 2016 HOME Investment Partnerships Program (HOME) funds from the U.S. Department of Housing and Urban Development (HUD). The Agreement term is July 1, 2016 through February 15, 2019. Expenditures for the Agreement activities shall be reimburseable through February 15, 2019. The County and the City may be referred to individually as the “Party” and collectively referred to as “Parties.” The Parties executed Administrative Change Order No. 1 on or about May 23, 2017 to revise the Activity Budget Summary. The Change Order did not impact the overall budget of the Agreement. The Parties executed Amendment No. 1 on or about February 13, 2018. The Amendment extended the term of the Agreement from February 15, 2019 through September 30, 2021. The County provided the City an increase in funding in the amount of $298,870 PY17 HOME funds. The Amendment added two (2) Work Statements 2017a, and Work Statement 2017b which addressed the following: • 2017a Work Statement – the City to acquire, rehabilitate and resell a single family home. The County provided the City with $100,652 for this activity. The expenditure time frame is through September 30, 2021. • 2017b Work Statement – the City to provide tenant based rental assistance and administration costs and increase the number of households assisted by 20. The County provided the City with $198,218 for this activity. The expenditure time frame expire September 30, 2021. The Agreement funding amount increased to $598,723. The Parties executed Administrative Change Order No. 2 on or about February 26, 2018 to revise the Activity Budget Summary. The Change Order did not impact the overall budget of the Agreement. The Parties executed Amendment No. 2 on or about October 18, 2018. The County provided the City an increase in funding in the amount of $421,957 PY18 HOME funds. The Amendment added two (2) Work Statements 2018 A, and Work Statement 2018 B which addressed the following: • 2018 A Work Statement - the City to acquire, rehabilitate and resell a single family home . The County provided the City with $189,473. The expenditure term for this Work Statement shall expire on September 30, 2022. Contract No. C-22-17-048-3-04 Amendment No. 4 Page 2 of 21 • 2018 B Work Statement - the City to provide tenant based rental assistance. The County will provided the City with $232,484. The expenditure term for this Work Statement shall expire on September 30, 2022. The Agreement funding amount increased to $1,020,680. The Parties executed Amendment No. 3 on or about April 28, 2020. The County provided the City an increase in funding in the amount of $370,876.29 PY 2019 HOME funds. The Amendment added two (2) Work Statements 2019 A, and Work Statement 2019 B which addressed the following: • 2019 A Work Statement - the City to acquire, rehabilitate and resell a single- family home . The County provided the City with $141,585. The expenditure term for this Work Statement shall expire on September 30, 2022. • 2019 B Work Statement - the City to expand the tenant based rental assistance program. The County will provided the City with $229,291.29. The City shall utilize $60,468.73 of Program Income and recaptured funds for this Work Stament The expenditure term for this Work Statement shall expire on September 30, 2023. The Agreement funding amount increased to $1,391,556.29. II. The Parties agree to enter into this Amendment No. 4 to the Agreement 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. Revise Section 3 (Work Statement) to address the following paragraphs: 1. Add an additional Work Statement hereinafter referred to as “2020 & 2021 Work Statement A” attached and incorporated into the Agreement. The City shall purchase and rehabilitate single-family homes for low-income first- time homebuyers. The County shall provide the City with Program Year 2020 and 2021 funding in a not-to exceed amount of $307,781 HOME funds through the HUD funds under the ALN 14.239. All work performed, or costs incurred expenses shall be reimbursable through September 30, 2025. The funding for this Work Statement activities includes: • $200,000 PY2020 • $107,781 PY2021 2. Add an additional Work Statement hereinafter referred to as “Work Statement 2021 HOME-ARP” attached and incorporated into the Agreement. The City shall provide development of affordable rental housing to qualifying populations defined by HUD Notice CPD-21-10 pages 3-8.The County shall provide the City with HOME ARP funding in a not-to exceed amount of $1,717,654 through HUD under ALN 14.239. All work performed, or costs incurred expenses shall be reimbursable through September 30, 2025. The funding for Work Statement activities include: • $1,717,654 HOME ARP Contract No. C-22-17-048-3-04 Amendment No. 4 Page 3 of 21 3. Add an additional Work Statement hereinafter referred to as “2020, 2021 & 2022 Work Statement B TBRA” attached and incorporated into the Agreement. The City shall provide tenant based rental assistance to individuals and households in need. The County shall provide the City with Program Year 2020, 2021 and 2022 funding in a not-to exceed amount of $407,331 HOME funds through HUD under ALN 14.239. All work performed, or costs incurred expenses shall be reimbursable through September 30, 2025. The City shall contribute $195,906.74 in Program Income (PY2020 $25,051.64, PY 2021 $62,082.99 and PY 2022 $108,772.11) towards Work Statement activities. The County funding for this Work Statement activities includes: • $210,705 PY2020 • $25,618 PY2021 • $171,008 PY2022 4. Add an additional Work Statement hereinafter referred to as “2021 & 2022 Work Statement C” attached and incorporated into the Agreement. The City shall purchase and rehabilitate single-family homes for affordable rental. The County shall provide the City with Program Year 2021 and 2022 funding in a not-to exceed amount of $558,482 HOME funds through HUD funds, under ALN 14.239. All work performed, or costs incurred expenses shall be reimbursable through September 30, 2025. The funding for this Work Statement activities includes: • $276,482 PY2021 • $282,000 PY2022 C. The Agreement funding amount shall be increased by $2,991,248 from $1,391,556.29 to $4,382,804.29 and shall consist of the following fund sources: • $1,717,654 – HOME ARP • $2,665,150.29 – HOME funds III. Section II above contains all the changes made by this Amendment No. 4. All other terms and conditions of the Agreement and previously approved amendments shall remain the same and unchanged and in full force and effect as executed by the Parties. IV. The Parties have authorized the undersigned to execute this Amendment No. 4 on their behalf, and it shall be effective upon approval and signature by both Parties. [Signatures contained in following page] Contract No. C-22-17-048-3-04 Amendment No. 4 Page 4 of 21 IN WITNESS THEREOF, the Parties have signed this Amendment: APPROVED BY: CITY OF CHANDLER APPROVED BY: MARICOPA COUNTY ___________________________________ Kevin Hartke Date Mayor ____________________________________ Clint Hickman Date Chairman Board of Supervisors Attested To: ___________________________________ City Clerk Date Attested To: ____________________________________ Juanita Garza, Clerk of the Board Date IN ACCORDANCE WITH A.R.S. §§ 9-240 and 11-952, THIS AMENDMENT NO. 4 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 CHANDLER UNDER THE LAWS OF THE STATE OF ARIZONA. APPROVED AS TO FORM: ___________________________________ IN ACCORDANCE WITH A.R.S. §§ 11-201, 11-251, AND 11-952, THIS AMENDMENT NO. 4 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: ___________________________________ City Attorney Date Deputy County Attorney Date Contract No. C-22-17-048-3-04 Amendment No. 4 Page 5 of 21 MARICOPA COUNTY Work Statement A - Acquisition and Rehabilitation for Resale of Single Family Homes HOME Investment Partnerships Program Program Year 2020 and 2021 Consortium Member: City of Chandler, Arizona Funding: PY 2020 $200,000 PY 2021 $107,781 Activity Type: Homebuyer Project: Acquisition and Rehabilitation for Resale of Single Family Homes Type of Property: Single-Family 1. FUNDING: PROGRAM YEAR ENTITLEMENT ADMINISTRATION PROGRAM INCOME (PI) (non- reimbursable, IDIS draw only) TOTAL BUDGET PY 2020 $200,000 $0 $0 $200,000 PY 2021 $107,781 $0 $0 $107,781 2. DETAILED SCOPE OF WORK 2.1. Project Description: The City of Chandler will contract with Newtown Community Development Corporation (Newtown CDC), acting in the capacity of a developer to acquire and rehabilitate one (1) single-family home in the City of Chandler for PY 2020 and one (1) single family home for PY 2021. Due to rising construction costs, the developer will only have the capacity to acquire two homes, instead of the 3 that were submitted with the original proposal. 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 City's Community Land Trust Program (CLT) will be executed before funding is made available regarding each property. Funds will be paid to Newtown CDC 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. 2.2. 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 City of Chandler 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. Contract No. C-22-17-048-3-04 Amendment No. 4 Page 6 of 21 When the property is re-sold to a new low-income homebuyer, Newtown CDC will self-certify to the City that the property meets health and safety standards, written rehabilitation standards, and local codes and ordinances. 2.3. Completed homes will be sold to eligible low-income first-time homebuyers. Properties will be acquired using Newtown CDC’s line credit, following completion of environmental review requirements. 2.4. In addition to the requirements set forth in Section 4 (Compensation), Newtown CDC will execute a Deed of Trust and Note naming the City of Chandler as the Beneficiary in order to secure any funds provided to Newtown CDC as reimbursement for acquisition costs. 2.5. Upon sale of the property to an eligible buyer, the City of Chandler will provide a Deed of Release and Re-conveyance (By Beneficiary) for the secured acquisition funds. 2.6. Resale provisions will be used to ensure compliance with the period of affordability required by HUD at 92.254 of the HOME regulations. The affordability restrictions shall be secured by a Community Land Trust (CLT) Ground Lease and a Declaration of Affirmative Land Use Restrictions. 2.7. Completed units shall be sold through the Newtown CLT program and under which the buyer shall purchases only the improvements and shall enter a 99- year CLT Ground Lease with Newtown CDC. The CLT Ground Lease shall contain provisions that require that the housing to be used as the buyer's principal residence. The Ground Lease also shall restrict resale/ transfer only to Low-Income buyers. In addition, the CLT Ground Lease shall contain 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 shall be recorded. A "Performance" Deed of Trust also shall be recorded with Newtown CDC as the beneficiary; this is to ensure that Newtown CDC is notified in the event the owner of the home attempts to refinance or transfer the property. 2.8. The shared appreciation provision shall conform to Maricopa HOME Consortium’s Recapture/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. 2.9. Upon sale to an eligible buyer, a Declaration of Affirmative Land Use Restrictive Covenant for HOME Project shall be executed between Newtown CDC and the City of Chandler and recorded against the land to secure the Period of Affordability as required by HUD. The Period of Affordability shall be based on the total amount of HOME funds invested in the housing. Eligible buyers will be required to complete an approved homebuyer education class and homeownership counseling. Eligible buyers also will be required to complete a CLT orientation, at which time the ground lease, resale restrictions, shared equity, and all other provisions of the CLT program shall be fully explained. Contract No. C-22-17-048-3-04 Amendment No. 4 Page 7 of 21 2.10. Project Purpose: The Project will create homeownership opportunities for a low- to moderate-income household that is rated as a high priority in the Consolidated Plan. 2.11. Project Beneficiaries: One (1) first-time homebuyers for PY 2020 and one (1) first- time homebuyer for PY 2021 at or below 80% of the area median income will benefit from this Project. Beneficiaries’ income eligibility will be verified by Newtown CDC and will comply with 24 C.F.R §. 92.203(d)(1). 2.12. Eligible buyers will be required to complete an approved homebuyer education class and homeownership counseling. 2.13. Project Staff: Newtown CDC shall maintain staff qualified to perform the duties of the project. Newtown CDC shall immediately notify the City of Chandler regarding any changes in staff committed to the project. The City of Chandler reserves the right to review the qualifications of new staff committed to the project after the execution of this Agreement. The City of Chandler 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 City of Chandler. 2.14. Subcontractors: Newtown CDC 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 Subcontractors. Newtown CDC shall select Subcontractors in accordance with the Administrative Requirements of this Agreement. Newtown CDC shall contract with responsible and qualified Subcontractors to perform the duties of the project. Newtown CDC shall verify the qualifications of each Subcontractor through license verification, references, and SAM.gov. 2.15. 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. 2.16. 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-22-17-048-3-04 Amendment No. 4 Page 8 of 21 3. 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. LOGIC MODEL: PERFORMANCE INDICATORS: OUTPUTS INPUTS/ RESOURCES ACTIVITIES PARTICIPATION OUTCOMES OBJECTIVES Development Staff, Funding and Contractors Acquire and rehabilitate two (2) units of Affordable Housing to be held in the CLT PY 2020: One (1) Households PY 2021: One (1) Household Increased affordable housing for a low- income family. Increased homeownership. Improved neighborhoods and quality of life. Decent and affordable housing 5. PERFORMANCE REPORTING GOALS/TIMELINE OF ACTIVITIES: MILESTONES: Tasks to be Performed PY 2020 COMPLETION DATE PY 2021 COMPLETION DATE Application/market study Execute Intergovernmental Agreement between Maricopa County, City of Chandler and Newtown CDC 6/30/2023 6/30/2023 City of Chandler Executes Developer Agreement with Newtown CDC 10/31/23 10/31/23 Environmental Review approval 01/01/24 01/01/24 Acquisition of properties 02/01/24 02/01/24 RFP for rehabilitation activities 04/30/24 04/30/24 Homeownership counseling/buyer preparation 07/15/24 07/15/24 Rehabilitation 08/31/25 08/31/25 Sale of Unit 9/30/25 9/30/25 Homebuyer financing secured 7/30/25 7/30/25 Contract No. C-22-17-048-3-04 Amendment No. 4 Page 9 of 21 Expend Proceeds 9/30/25 9/30/25 Final Close-out /Project Completion Form 9/30/25 9/30/25 Any change to the Timeline will need to be approved by the County. 6. ACTIVITY BUDGET SUMMARY: ACTIVITY PY 2020 HOME FUNDS PY 2021 HOME FUNDS OTHER RESOURCES Table 7 & 8 TOTAL ACTIVITY BUDGET Acquisition $200,000 $107,781 $492,219 $800,000 Rehabilitation $0 $0 $100,000 $100,000 Developer Fee $0 $0 $90,800 $90,800 Closing costs $0 $0 $4,000 $4,000 Other Soft Costs $0 $0 $4,200 $4,200 Administration-City of Chandler $0 $0 $0 $0 TOTALS $200,000 $107,781 $691,219 $999,000 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. SOURCE AND AMOUNT OF OTHER RESOURCES: OTHER RESOURCES AMOUNT Newtown Private Funds $691,219 8. ACTIVITY MATCH: AMOUNT FORM OF MATCH SOURCE $76,945.25 WISH Federal Home Loan Bank of San Francisco Match commitment must equal 25% of the HOME funds requested. Documentation is due at the time of each request for payment. 9. SALES PRICE: 9.1 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. 9.2 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. Contract No. C-22-17-048-3-04 Amendment No. 4 Page 10 of 21 10. 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 Newtown CDC for the acquisition and rehabilitation of additional properties under this Agreement. Program Income shall be tracked by Newtown CDC and reported to the City of Chandler with each Request for Reimbursement and at the request of the City of Chandler. 11. 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 City of Chandler. Contract No. C-22-17-048-3-04 Amendment No. 4 Page 11 of 21 MARICOPA COUNTY Work Statement 2021 HOME-ARP HOME Investment Partnerships Program – American Rescue Plan Program Year 2021 HOME-ARP Consortium Member: City of Chandler, Arizona HOME-ARP Funds: $1,717,654 ($1,578,385 from entitlement and $139,269 from admin) Activity Type: Development of Affordable Rental Housing Activity Name: Villas on McQueen 1. FUNDING: HOME-ARP HOME-ARP ADMIN TOTAL $1,578,385 $139,269 $1,717,654 2. DETAILED SCOPE OF WORK: 2.1. City of Chandler will be transforming public housing inventory into new, updated and expanded affordable housing opportunities for Chandler residents. The Villas on McQueen project will allow for the construction of 157 new units through HUD’s Rental Assistance Demonstration (“RAD”) program. Villas on McQueen will jumpstart the master redevelopment plan for the City of Chandler’s conversion of their public housing portfolio to new, high-quality housing that will become a significant asset for low and moderate-income renters who are seeking an environmentally and economically sustainable housing option with on-site resident services. 2.2. The Project will include 78 Project Based Vouchers and 79 additional affordable housing units that will serve qualifying populations defined by HUD Notice CPD- 21-10 pages 3-8. Villas on McQueen will be developed on existing 4.54 acres of land owned by the City of Chandler and will be contributed to the partnership by the City through a long-term ground lease as part of a comprehensive revitalization strategy. 2.3. Villas on McQueen is located at Southeast Corner of McQueen Road and Chandler Boulevard. 2.4. All HOME-ARP activities will follow the guidance provided in Notice CPD-21-10: Requirements for Use of Funds in the HOME-ARP Program. Contract No. C-22-17-048-3-04 Amendment No. 4 Page 12 of 21 3. ACTIVITY GOALS: Activity Goal ACTIVITY GOALS Development of Affordable Rental Housing Supportive Services Acquisition and Development of Non-Congregate Shelters Tenant Based Rental Assistance Estimated Number of New Units/ Beds Developed 6 Estimated Number of Households to Benefit 16 4. LOGIC MODEL: PERFORMANCE INDICATORS: INPUTS/RESOURCES In order to accomplish proposed activities, the subrecipient will need the following: ACTIVITIES In order to address the issue, the subrecipient will conduct the following activities: OUTPUTS Once completed, these activities will produce the following: OUTCOMES When completed, these activities will lead to the following changes: IMPACT Long term changes: New construction of rental housing units 5. QUALIFIED POPULATIONS OF PROPOSED BENEFICIARIES: Qualified Populations Number Individuals Number of Families Homeless At Risk of Homelessness 27 Fleeing, or Attempting to Flee, Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking Other Populations: (1) Other Families Requiring Services or Housing Assistance to Prevent Homelessness Other Populations: (2) At Greatest Risk of Housing Instability Veterans and Families that include a Veteran Family Member (that meet one of the preceding populations) 5 TOTAL 32 (Only required for Development of Affordable Housing) Contract No. C-22-17-048-3-04 Amendment No. 4 Page 13 of 21 HOME-ARP Rental Housing Occupancy Requirements Number of Units Total Number of Units Percentage of Units HOME-ARP Units assisted based on status as qualifying household (Minimum 70%) HOME-ARP Units assisted based on income eligibility (not to exceed 30%) 6 TOTAL 6 100% 6. PREFERNCES AMONG QUALIFYING POPULATIONS, REFERRAL METHODS, AND SUBPOPULATIONS: 6.1. Identify the intent to give preference to one or more qualifying populations or a subpopulation within one or more qualifying populations for any eligible activity or project: 6.2. Referral Methods for Project or Activity: The PHA will establish and manage separate waiting lists for individual projects or buildings that are receiving PBV assistance. The PHA currently has waiting lists for the following PBV projects: Proposed new project through RAD transfer of assistance to Villas on McQueen located on McQueen and Chandler Blvd. 6.3. Waitlist Procedures: Applicants who will occupy units with PBV assistance must be selected from the PHA’s waiting list. The PHA may establish selection criteria or preferences for occupancy of particular PBV units. The PHA may place families referred by the PBV owner on its PBV waiting list. The PHA may use the same selection preferences that are used for the tenant-based voucher program, establish selection criteria or preferences for the PBV program as a whole, or for occupancy of particular PBV developments or units. 7. PERFORMANCE REPORTING GOALS-TIMELINE OF ACTIVITIES: MILESTONES START DATE COMPLETION DATE Environmental Review Jan 2023 July 2023 Authority to Use Grant Funds Aug 2023 Plans Submitted to Municipality June 2023 Building Permits Issued Feb 2024 Construction Loan (Closing Date) Feb 2024 Partnership Loan Closing Feb 2024 Construction Begins Feb 2024 Construction 50% Complete Dec 2024 Construction 75% Complete June 2025 Certificate of Occupancy Oct 2025 Any change to the Timeline will need to be submitted to and approved by Maricopa County. Contract No. C-22-17-048-3-04 Amendment No. 4 Page 14 of 21 8. ACTIVITY BUDGET SUMMARY (estimated): COSTS HOME-ARP FUNDS HOME-ARP ADMIN Additional Sources* (defined in Table 9) TOTAL COST Construction Cost $1,000,000 $139,269* $37,323,253 $38,323,253 Soft Cost $578,385 $0 $14,960,268 $15,538,653 Financing Fees $0 $0 $236,000 $236,000 Reserves $0 $0 $1,486,588 $1,486,588 TOTAL $1,578,385 $139,269 $54,006,109 $55,584,494 • *HOME Admin funds of $139,269 not included in the total construction cost 9. SOURCE AND AMOUNT OF OTHER RESOURCES (estimated): FUNDING AGENCY CASH/LOAN AMOUNT VOLUNTEER/ IN-KIND AMOUNT Maricopa County – ARPA $5,000,000 Chandler HOME ARPA $1,578,385 Chandler HOME Funds $400,000 LIHTC Federal/State $25,497,450 First Mortgage $20,000,000 ADOH NHTF $3,000,000 Def Dev Fee $108,659 TOTAL $55,584,494 10. MATCH: Matching Contribution Requirements. The requirements of 24 CFR 92.218 through 24 CFR 92.222 and any other requirements for matching contributions in 24 CFR part 92 shall not apply to HOME-ARP funds, as subsection (c)(1) of ARP states that the underlying statutory requirement at section 220 of NAHA (42 U.S.C. 12750) does not apply to HOME-ARP funds. 11. ADDITIONAL PROJECT OR ACTIVITY INFORMATION: (If applicable) Contract No. C-22-17-048-3-04 Amendment No. 4 Page 15 of 21 MARICOPA COUNTY Work Statement B - TBRA HOME Investment Partnerships Program Program Year 2020, 2021, and 2022 Consortium Member: City of Chandler, Arizona Project: Tenant Based Rental Assistance and HOME Administration Funding: PY 2020 $210,705 ($185,036 from EN and $25,669 AD) PY 2021 $25,618 ($25,618 from AD) PY 2022 $171,008 ($142,695 from EN and $28,313 AD) Type of Property: Rental 1. FUNDING: PROGRAM YEAR ENTITLEMENT (EN) ADMINISTRATION (AD) PROGRAM INCOME (PI) (non- reimbursable, IDIS draw only) TOTAL BUDGET PY 2020 $185,036 $25,669 $25,051.64 $235,756.64 PY 2021 $0 $25,618 $62,082.99 $87,700.99 PY 2022 $142,695 $28,313 $108,772.11 $279,780.11 2. DETAILED SCOPE OF WORK: Include the following- 1. Consolidated Plan goals as it relates to this activity: • High 2. Type of assistance/activity to be provided with HOME funds: • Tenant Based Rental Assistance • Administration 3. OBJECTIVES AND OUTCOMES (Check appropriate box below.): OBJECTIVE OUTCOMES AVAILABILITY/ ACCESSIBILITY AFFORDABILITY SUSTAINABILITY DECENT HOUSING Single Family Housing Rehab and Emergency Rehab Homebuyer Activities, Acquisition/Rehab of rental housing, Acquisition/New Construction of rental housing, TBRA, Expansion of assisted rental units Housing Activities in a targeted revitalization area 4. PERFORMANCE INDICATORS: The City of Chandler Housing and Redevelopment Division will administer the Tenant Based Rental Assistance Program. Through this effort, homelessness will be prevented Contract No. C-22-17-048-3-04 Amendment No. 4 Page 16 of 21 by providing decent, affordable rental housing for individuals and households in need. This will result in self-sufficiency and housing stabilization, as well as an understanding of the underlying issues that contributed to loss of housing. 5. PROPOSED BENEFICIARIES: Targeted Population by Income Level Number of Households PY 2020 Number of Households PY 2022 Total Number of Units Number of HOME Assisted Units in program (if rental) Households at or below 50% 22 12 Households at or below 60% Households at or below 80% TOTAL 22 12 6. PRIORITY POPULATIONS: Complete the table below only if the Activity will specifically set-aside units for a priority population. Set-asides will be enforced through contract provisions. Priority Populations No. of Units PY 2020 No. of Units PY 2022 Total Elderly Physically Disabled Other Priority Populations: Veterans Homeless 22 12 34 7. PERFORMANCE REPORTING GOALS-TIMELINE OF ACTIVITIES: TBRA MILESTONES PY 2020 COMPLETION DATE PY 2022 COMPLETION DATE HOME Contract Amendment signed by City 07/15/23 07/15/23 Environmental Program Clearance 07/15/2020 07/15/2020 Application Intake-Certification of Income Eligibility Ongoing program Ongoing program Application Review Ongoing program Ongoing program Initial HQS Property Inspection Prior to leasing and annually throughout Lead Term Prior to leasing and annually throughout Lead Term Home Set up Report to County 07/15/23 07/15/25 Contract No. C-22-17-048-3-04 Amendment No. 4 Page 17 of 21 Unit Occupied by Low/Moderate Income Person/Family Throughout Contract Term Throughout Contract Term Completion Report submitted to City 07/15/25 07/15/27 Any change to the Timeline will need to be submitted to and approved by Maricopa County. 8. ACTIVITY BUDGET SUMMARY: TBRA ACTIVITIES 2020 HOME FUNDS 2021 HOME FUNDS 2022 HOME FUNDS Additional Sources (defined in Table 9 & 10 below) TOTAL COST RENTAL COSTS Monthly Rent; Utility Costs; Sec. Dep; Utility Deposits $185,036 $0 $142,695 $195,906.74 $523,637.74 HOME ADMINISTRATION $25,669 $25,618 $28,313 $0 $79,600 TOTAL $210,705 $25,618 $171,008 $195,906.74 $603,237.74 Administration (AD) funds to be expended by the City of Chandler for overall HOME program administration. 9. SOURCE AND AMOUNT OF OTHER RESOURCES: FUNDING AGENCY CASH AMOUNT VOLUNTEER/ IN-KIND AMOUNT City of Chandler Program Income PY 2020 $25,051.64 City of Chandler Program Income PY 2021 $62,082.99 City of Chandler Program Income PY 2022 $108,772.11 TOTAL $195,906.74 10. MATCH: Match commitment must equal 25% of the HOME funds requested. Documentation is due at the time of request for payment(s). Match Logs must be submitted annual by June 30th of each year. TYPE SOURCE/FUNDING AGENCY General Fund TOTAL Cash or cash equivalents from a non-federal source General Funds $81,933 TOTALS Contract No. C-22-17-048-3-04 Amendment No. 4 Page 18 of 21 MARICOPA COUNTY Work Statement C - Acquisition and/or Rehabilitation of Single-Family Rental Housing HOME Investment Partnerships Program Program Year 2021 and 2022 Consortium Member: City of Chandler, Arizona Activity Type: Homebuyer Project: Acquisition and/or Rehabilitation of Single-Family Rental Housing Funding: PY 2021 ($276,482 from EN) PY 2022 ($282,000 from EN) Type of Property: Single Family 1. FUNDING: PROGRAM YEAR ENTITLEMENT ADMINISTRATION TOTAL BUDGET PY 2021 $276,482 $0 $276,482 PY 2022 $282,000 $0 $282,000 2. DETAILED SCOPE OF WORK 2.1. The City of Chandler will contract with Affordable Rental Movement of Save the Family Foundation of Arizona (A.R.M.), acting in the capacity of a developer to purchase and rehabilitate one (1) new permanent affordable rental home in the City of Chandler for PY 2021 and one (1) new permanent affordable rental home in the City of Chandler for PY 2022. 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 will be executed before funding is made available regarding each property. Funds will be paid to A.R.M. 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. 2.2. 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 City of Chandler 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. 2.3. A.R.M. will utilize HOME funds for the purchase and minor rehabilitation of one home to be rented for income eligible residents. A.R.M. will ensure that eligible Contract No. C-22-17-048-3-04 Amendment No. 4 Page 19 of 21 beneficiaries do not exceed the current Maricopa County HOME Income Limits. A.R.M. will not exceed the annual HOME Rent Limits, including utilities. 2.4. A.R.M. currently has 16 permanent affordable rental homes. Affordable rental property is a high priority goal in the City of Chandler’s Consolidated Plan. 2.5. Type of assistance/activity to be provided with HOME funds: Acquisition and Rehabilitation of Rental Housing and the creation of a permanent, affordable rental home. 2.6. Methods and instruments used for ensuring affordability: Recapture provision. The HOME funds will be secured by a Affirmative Land Use Restrictive Agreement (LURA), Deed of Trust and Promissory Note naming the City of Chandler as the Beneficiary in order to secure any funds provided as reimbursement for acquisition costs. The County utilizes a recapture provision that will require the HOME funds to be repaid in full by either A.R.M. or the City if the unit is determined to be no longer eligible. Funds to be repaid will be based on the entire amount of HOME subsidy that was originally used to purchase and rehabilitate the unit. All units are secured by a LURA, Deed of Trust and Promissory Note. 2.7. Anticipated use of Program Income: No Program Income is anticipated. 3. OBJECTIVES AND OUTCOMES: OBJECTIVE OUTCOMES AVAILABILITY/ ACCESSIBILITY AFFORDABILITY SUSTAINABILITY DECENT HOUSING Single-Family Housing Rehab and Emergency Rehab, Homebuyer Assistance Homebuyer Activities, Acquisition/Rehab of rental housing, acquisition/New Construction of rental housing, Expansion of assisted rental units in the private marketplace Housing Activities in a targeted revitalization area 4. LOGIC MODEL: PERFORMANCE INDICATORS: INPUTS/RESOURCES In order to accomplish proposed activities, the Subrecipient will need the following: ACTIVITIES In order to address the issue, the Subrecipient will conduct the following activities: OUTPUTS Once completed, these activities will produce the following: OUTCOMES When completed, these activities will lead to the following changes: IMPACT Long term changes: Contract No. C-22-17-048-3-04 Amendment No. 4 Page 20 of 21 HOME funding Purchase and rehabilitate two single family unit homes for a household at or below 60% of the Area Median Income Expand affordable housing opportunities Safe and decent housing for a low- income household. Stable neighborhoods 5. PROPOSED BENEFICIARIES: Targeted Population by Income Level Number of Households Total Number of Units Number of HOME Assisted Units in program (if rental) Households at or below 50% Households at or below 60% 2 2 2 Households at or below 80% TOTAL 2 2 2 6. PRIORITY POPULATION: Complete the table below only if the Activity will specifically set-aside units for a priority population. Set-asides will be enforced through contract provisions. Priority Populations No. of Units Elderly Physically Disabled Other Priority Populations: Veterans Homeless 7. PERFORMANCE REPORTING GOALS/TIMELINE OF ACTIVITIES: PY 2021 MILESTONES COMPLETION DATE PY 2022 MILESTONES COMPLETION DATE HOME Amendment signed by City of Chandler 07/15/23 HOME Amendment signed by City of Chandler 07/15/23 City of Chandler’s Developer Agreement with A.R.M. of Save the Family 09/01/23 City’s Developer Agreement with A.R.M. of Save the Family 09/01/23 Market Study 10/01/23 Market Study 10/01/24 Underwriting 11/15/23 Underwriting 11/15/24 Secure Financing 12/01/23 Secure Financing 12/01/24 Environmental Review 01/15/24 Environmental Review 01/15/25 Obtain Site Control 02/01/24 Obtain Site Control 02/01/25 Work write-ups and bid selection 2/15/24 Work write-ups and bid selection 2/15/25 Rehabilitation Complete 3/1/24 Rehabilitation Complete 3/1/25 Contract No. C-22-17-048-3-04 Amendment No. 4 Page 21 of 21 Final Close-out/Project Completion Form Submitted to the City 04/15/24 Final Close-out/Project Completion Form Submitted to the City 04/15/25 Any change to the Timeline will need to be approved by the County 8. ACTIVITY BUDGET SUMMARY: ACTIVITY PY 2021 HOME FUNDS PY 2022 HOME FUNDS OTHER RESOURCES (9 & 10) TOTAL ACTIVITY BUDGET Acquisition/Rehabilitation $258,982 $264,500 $0 $523,482 Developer Fees $17,500 $17,500 $0 $35,000 TOTALS $276,482 $282,000 $0 $558,482 9. SOURCE AND AMOUNT OF OTHER RESOURCES: FUNDING AGENCY AMOUNT VOLUNTEER/IN-KIND AMOUNT American Rescue Plan Act (ARPA) Funding $400,000 ($200,000 per acquisition) 10. ACTIVITY MATCH: AMOUNT FORM OF MATCH SOURCE $139,620.50 Loan Maricopa County Human Services Department's Federal Home Loan Bank Match commitment must equal 25% of the HOME funds requested. Documentation is due at the time of each request for payment