AMENDMENT 2 - ARM OF SAVE THE FAMILY FOUNDATION OF ARIZONA.PDF
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Amendment No. 2 C-73-22-081-X-19 SERIAL 220166-RFP 2 WHEREAS, Maricopa County, Arizona (“County”) and THE A.R.M. OF SAVE THE FAMILY FOUNDATION OF ARIZONA (“Contractor”) have entered into a Contract for the purchase of AFFORDABLE HOUSING DEVELOPMENT OPPORTUNITIES dated April 20, 2022 (“Agreement”) County Contract No: 220166-RFP. WHEREAS, County and The A.R.M. of Save the Family Foundation of Arizona have agreed to further modify the Agreement by changing certain terms and conditions. NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto agree as follows: 1. Approve Amendment No. 2 to the agreement RFP 220166-Affordable Housing Development Opportunities, executed on April 20, 2022, between The A.R.M. of Save the Family Foundation of Arizona, and Maricopa County. The purpose of the Agreement is to increase the number affordable housing units to address the affordable housing shortage. 2. The purpose of the Amendment is to adjust the structure of the Agreement to increase the number of affordable housing units to be produced from this Agreement. 3. Summary of changes: - Exhibit B1 - Revised number of Units from 4 to 5 and adding the City of Chandler to the Project Description. ARPA funds (ALN No. 21.027) will be used to purchase and rehabilitate the Units. - Exhibit B2 – Revised budget to increase by $288,094 from $1,229,600 to $1,517,694 - Exhibit B3 – Revised Project schedule, by adding additional Completion Dates. - Exhibit D2 – Revised number of Units to be funded with ARPA funds provided to the County through the U.S. Department of Treasury. Please see revisions following signature page Amendment No. 2 C-73-22-081-X-19 SERIAL 220166-RFP ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED IN WITNESS WHEREOF, the Contract Amendment is executed on the date set forth below and executed by Maricopa County. The AUTHORIZED SIGNATURE OF PRINCIPAL PRINTED NAME AND TITLE ADDRESS DATE MARICOPA COUNTY CLINT HICKMAN, CHAIRMAN, BOARD OF SUPERVISORS DATE ATTESTED: CLERK OF THE BOARD DATE APPROVED AS TO FORM: DEPUTY COUNTY ATTORNEY DATE Amendment No. 2 C-73-22-081-X-19 SERIAL 220166-RFP Revisions to contract in red. Only contract pages with revisions are included: EXHIBIT B – STATEMENT OF WORK Attachment B1: Project Description Project Description: The Project as described herein as, Affordable Rental Movement shall utilize ARPA funds to purchase and rehabilitate five (5) four (4) 2‐3 bedroom housing units within the City of Mesa, Arizona and the City of Chandler, Arizona. The specific locations are not yet known but shall focus primarily within the 85201, 85210, 85202, 85203, and 85204, 85224, 85225 zip codes, which include areas within a qualified census tract (QCT). The purchase price for each housing unit shall range from $200,000 ‐ $460,000. Rehabilitation costs could average $15,000 per unit with an approximate cost of $275,000 per housing unit. The units to be purchased shall range from 800 to 1,200 square feet and will most likely include condominiums or townhomes due to the current prices for detached single family homes within the target zip codes in Mesa. Typical rehab for new acquisitions include interior paint and drywall repair; removal and installation of new carpeting or vinyl flooring; removal and installation of new basic appliances; repairing plumbing; and completing electrical upgrades to bring the unit up to code. These housing units shall serve very low-income individuals at or below 60% or area median income (“AMI”) as determined annually by the U.S. Department of Housing and Urban Development (HUD). The funds will acquire and rehabilitate five (5) four (4) ARPA-assisted units. During the thirty (30) year Period of Affordability (as that term is defined in the Agreement), the five (5) four (4) ARPA-assisted “fixed” units shall consist of: two (2) bedroom or three (3) bedroom units. The term “fixed” in this Agreement shall be defined as set forth in 24 C.F.R. § 92.252(j). The income restrictions on the ARPA-assisted units must be maintained during the entire Period of Affordability. Project Eligibility: Property Standards - Housing that is constructed or rehabilitated with ARPA funds must meet all applicable local codes, rehabilitation, and construction standards, ordinances, and zoning ordinances, including Section 504 of the Rehabilitation Act of 1973 and Fair Housing Act, as amended, at the time of project completion. All work shall meet decent, safe, and sanitary housing standards consistent with HOME regulations including HUD Housing Quality Standards and Maricopa County Housing Rehabilitation Standards. These standards are available on the Maricopa County website under Housing & Community Development or upon request. Occupancy Requirements – The Project staff shall determine and verify income eligibility of tenants for the ARPA assisted-units prior to occupancy of a unit. The occupancy of the ARPA- assisted units must be by households whose income is initially at or below 60% AMI (very low income) throughout the Period of Affordability; see Exhibit B, Attachment B5: HOME Income and Rent Limits. The Project shall define “Annual Income” as it is defined at 24 C.F.R. Part 92 and shall document sources of income and examine eligibility on an annual basis in order to meet requirements of HOME regulations at 24 C.F.R. Part 92.203. Additional guidance and resources are outlined in Exhibit D, Attachment D2: Occupancy Restrictions and Project Unit Characteristics. Rental Requirements - The ARPA-assisted units shall be designated as Low HOME units, which are outlined in Exhibit B, Attachment B5: HOME Income and Rent Limits. Utility Allowances are outlined in Exhibit B, Attachment B6: Utility Allowances. The Low HOME rent limit is the maximum Amendment No. 2 C-73-22-081-X-19 SERIAL 220166-RFP rent allowed for a ARPA-assisted unit; the maximum rent amount includes the utility allowance. Any increase in the lesser of these rent limits must be approved by HUD and the State of Arizona Department of Housing. Developer shall provide to the County a written request for the increase in rent limits and supporting documentation for the justification of this request. Affordability Period – Developer shall ensure all housing assisted under this Agreement meets the affordability requirements of 24 C.F.R. § 92.254 or § 92.252, as applicable. Deliverables Beneficiaries Number of households (units) (4) 5 Number of people (approximate) 12 15 Use of ARPA Funds - The ARPA funds provided under this Agreement shall be used for the cost detailed in the budget found in Attachment B2. Amendment No. 2 C-73-22-081-X-19 SERIAL 220166-RFP EXHIBIT B – STATEMENT OF WORK Attachment B2: Budget FUND SOURCES Sources Total MCHSD ARPA Funds Soft Loan $1,229,600 $1,517,694 Total $1,229,600 $1,517,694 BUDGET SUMMARY Name of Activity: Affordable Rental Movement ARPA Funds Additional Sources TOTAL COST Acquisition Costs Land $1,100,000 $1,355,000 $ $1,100,000 $1,355,000 Building Acquisition $ - $ - $ - Other: taxes, title, recording $ - $ - $ - General Development Costs Construction Hard Costs- Residential $60,000 $78,000 $ - $60,000 $78,000 Construction Costs- Nonresidential $ - $ - $ - Contractor OH, Profit, and Gen. Conditions $ - $ - $ - Hard Costs Contingency $ - $ - $ - Environmental- inspection and remediation $ - $ - $ - Demolition $ - $ - $ - Site Planning $ - $ - $ - Architect Fees $ - $ - $ - Engineering Fees $ - $ - $ - Survey, Permit, Tests $ - $ - $ - Legal Fees $ - $ - $ - Other Professional Fees $ - $ - $ - State Finance Agency Tax Credit Fees $ - $ - $ - Syndication $ - $ - $ - Bond Cost of Issuance Fees $ - $ - $ - Permits and Fees Paid for by Developer $ - $ - $ - Accounting and Cost Certification $ - $ - $ - Title and Recording $ - $ - $ - Market Study/Appraisal $ - $ - $ - Real Estate Taxes $ - $ - $ - Insurance $ - $ - $ - Amendment No. 2 C-73-22-081-X-19 SERIAL 220166-RFP Construction Period Interest $ - $ - $ - Construction Financing Fees $ - $ - $ - Permanent Financing Fees $ - $ - $ - Marketing Expense $ - $ - $ - Reserves $ - $ - $ - Soft Cost Contingency $ - $ - $ - $ - Developer’s Fee $ - Developer’s Fee $69,600 $84,694 $ - $69,600 $84,694 Homeownership Counseling Counseling fee $ - $ - $ - Program Administration Costs* Program Management Services $ - $ - $ - Staff $ - $ - $ - Supportive Services $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - TOTALS $1,229,600 $1,517,694 $ - $1,229,600 $1,517,694 Amendment No. 2 C-73-22-081-X-19 SERIAL 220166-RFP EXHIBIT B – STATEMENT OF WORK Attachment B3: Project Schedule ACTIVITY COMPLETION DATE Submit ARPA Application to County 1/11/2022 Award & Execute Contact 4/20/2022 Site Selection & Market Study – Unit #1 6/1/2022 Acquisition of Single-Family Home – Unit #1 7/01/2022 Rehab / Construction – Unit #1 8/15/2022 Rehab Completion – Unit #1 9/30/2022 Unit Occupied by Low/Moderate Income Person/Family 10/15/2022 Completion Report to County 12/1/2022 Site Selection & Market Study – Unit #2 12/1/2022 Acquisition of Single-Family Home – Unit #2 1/15/2022 Rehab / Construction – Unit #2 2/15/2022 Rehab Completion – Unit #2 3/31/2023 Unit Occupied by Low/Moderate Income Person/Family 4/15/2023 Completion Report to County 5/15/2023 Site Selection & Market Study – Unit #3 6/1/2023 Acquisition of Single-Family Home – Unit #3 7/15/2023 Rehab / Construction – Unit #3 9/1/2023 Rehab Completion – Unit #3 11/1/2023 Unit Occupied by Low/Moderate Income Person/Family 11/15/2023 Completion Report to County 12/15/2023 Site Selection & Market Study – Unit #4 1/15/2023 Acquisition of Single-Family Home – Unit #4 2/28/2024 Rehab / Construction – Unit #4 3/15/2024 Rehab Completion – Unit #4 4/15/2024 Unit Occupied by Low/Moderate Income Person/Family 5/1/2024 Completion Report to County 6/15/2024 Site Selection & Market Study – Unit #5 4/1/2024 Acquisition of Single-Family Home – Unit #5 5/15/2024 Rehab / Construction – Unit #5 7/15/2024 Rehab Completion – Unit #5 8/1/2024 Unit Occupied by Low/Moderate Income Person/Family 9/1/2024 Completion Report to County 9/8/2024 Amendment No. 2 C-73-22-081-X-19 SERIAL 220166-RFP EXHIBIT D- ADDITIONAL PROCEDURES/FORMS Attachment D2: Occupancy Restrictions and Project Unit Characteristics This Attachment describes the specific affordability requirements and occupancy restrictions for the Project required by the applicable program regulations and the project characteristics as described and represented to the County. The Project shall be operated and maintained according to the unit mix and with the amenities described herein. 1. Residential Rental Unit Mix. The Developer acknowledges that the Project shall contain 5 4 total residential rental units of which, 0 are to be rented at market rates and 5 4 are ARPA-Assisted Units. The ARPA-Assisted Units shall be floating Units 2. Tenant Income and Rent Restrictions. The ARPA-Assisted Units shall be rented to qualifying tenants at the income levels and the rent limits described below: At least 5 4 units; (a) two-bedroom unit or (b) three-bedroom units in the Project shall be Low Program Rent units and must be occupied by low-income households initially earning no more than 60% of the area median income adjusted by family size with rents not to exceed the lesser of: (1) the Fair Market Rent or (2) the Low Program Rent. a) For the purposes of distinguishing High Program Rent Units from Low Program Rent Units, increases in tenant income are permitted as follows: In the event that the income of a tenant occupying a Low Program Rent unit or a Very Low Program Rent unit increases but does not exceed 80% of the area median income, that unit shall become a High Program Rent unit. To replace the Low Program Rent unit or a Very Low Program Rent unit, the Declarants must rent the next available unit to a Low Program Rent tenant or a Very Low Program Rent tenant as the case may be. The rent of the initial tenant whose income has increased may be increased to the High Program Rent for the unit. This process shall not increase the number of ARPA-Assisted Units. If the tenant’s income increases above 80% of the area median income, the unit shall still be considered to be a High Program Rent unit but the tenant’s rent must be adjusted as described under paragraph 2(e), below. The next available unit of comparable size or larger must be rented to tenants eligible for a ARPA-Assisted Unit and the rent can be adjusted as appropriate. b) Annual Recertification of Tenant Income: The Developer must reexamine the income of tenants living in ARPA-Assisted Units at least annually. Each recertification must take place on the anniversary of the original income evaluation and lease signing unless the Declarants has adopted an annual schedule to perform all verifications at the same time. c) Source Documentation – The ARPA fund will defer to The HOME regulations in 24 C.F.R. 92.203 for the income eligibility of applicants to be determined by examining source documentation which provides evidence of annual income. Verification of household income must be verified by the developer in accordance with 24 CFR 92.203. The project shall obtain and keep as part of its records the required documentation from the applicant for all ARPA-assisted units on an annual basis. d) Over-income Tenants - If, during the annual requalification process stipulated in 24 C.F.R. 92. 203 a tenant is determined to be over income, the Developer shall designate the next available comparable unit as a floating ARPA- assisted unit and apply all HOME regulatory requirements and those of this Agreement to that unit. Developer shall notify the County of any requirements of other funding that conflict with the requirements of this Agreement; the parties agree to take reasonable steps to remedy such conflicts if possible and necessary 3. Supportive Services. The Developer acknowledges that supportive services shall be made available to tenants on the Project.