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HomeMy WebLinkAbout2009-111 Housing - Housing for New Hope, Inc. - Consolidated Housing Plan Annual Update/HOME Program Housing7~ NORTH CAROLINA ORANGE COUNTY HOME PROGRAM AGREEMENT This is an AGREEMENT between Orange County, a general local governmental unit of the State of North Carolina, (hereinafter referred to as the "County") and HOUSING FOR NEW HOPE, INC., a North Carolina non-profit housing organization (hereinafter referred to as "Provider"). The effective date of this Agreement is Q.~ ~ 13 ~ 2Q i o WITNESSTH WHEREAS, the Orange County Board of Commissioners awarded the Provider $50,000 in FY 2009 HOME Investment Partnership Program funding to provide tenant-based rental assistance to homeless individuals and families transitioning to permanent housing in Orange County; and WHEREAS, the County is the lead entity of the Orange HOME Consortium, so designated in an agreement dated July 1, 2008, and as such is the lead entity in a representative capacity for all members of the Orange HOME Consortium for the purposes of carrying out the HOME Program in accordance with the Title II of the Cranston-Gonzalez National Affordable Housing Act (Pub. L. 101-625), (42 U.S.C. 3535(d.) et. seq.) (hereinafter referred to as the "Act"), and as further defined in the Federal Program Requirements provided by the U.S. Department of Housing and Urban Development; and WHEREAS, the Provider intends to provide tenant based rental assistance approximately 25 families (herein after referred to as "the Project") leasing permanent, standard housing in Orange County; and WHEREAS, the Provider intends to assist individuals and/or families earning up to 30% of HUD area median income as described in their FY 2009 HOME Program Proposal dated February 27, 2009 which is hereby incorporated into this Agreement, and hereafter referred to as "The Project". A copy of the FY 2009 HOME Program Proposal is on file in the office of the Housing and Community Development Department; and WHEREAS, notwithstanding any provision of this Agreement, the County and the Provider hereto agree and acknowledge that this Agreement does not constitute a commitment of funds or site approval, and that such commitment of funds or approval may occur only upon satisfactory completion of an environmental review and receipt by Orange County of a Release of Funds from the U.S. Department of Housing and Urban Development under 24 CFR Part §58 if applicable. The parties further agree that the provision of such funds to the project is conditioned on Orange County's determination to proceed with, modify, or cancel the project based on the results of a subsequent environmental review. NOW, THEREFORE, in consideration of the mutual covenants, promises, and representations contained herein, it is agreed between the parties hereto as follows: I. USE OF HOME FUNDS 1. The Provider shall perform the tasks related to its allocation of HOME funds as provided in Exhibit A and within the proposed budget outlined in Exhibit B. Exhibits A and B are hereby made a part of this Agreement and are incorporated by reference, as it now reads or as it may be modified by the parties. 2. The Provider may not request disbursement of funds under this Agreement until the funds are needed for payment of eligible costs. Eligible costs are: payment for rent, security deposits and utility deposits only. The amount of each request must be limited to eligible costs as determined by Orange County staff. II. AMOUNT OF HOME FUNDS/FORM OF SUBSIDY The County shall make available to the Provider up to Fifty thousand Dollars ($50,000) pursuant to this Agreement. Said funds shall be disbursed by the County to the Provider for performance of the services described in Exhibit B. HOME Program subsidy will be provided as a grant to each identified family as a fixed subsidy by payment to a landlord or utility company. III. TIMELINESS The Provider shall complete the Project within twenty-four (24) months from the date of this Agreement. However, in the event of any alterations or additions or of circumstances beyond the control of the Provider, which in the opinion of the Director of the County's Department of Housing and Community Development will require additional time for completion of the Project, then in that case, the time of completion shall be extended by the County Manager in writing for a period of time not to exceed six (6) months. Any further extensions will require the approval of the Orange County Board of County Commissioners. IV. TERM OF THE AGREEMENT This Agreement will remain in effect until all HOME funds are disbursed. V. AFFORDABILITY REQUIREMENTS Provider agrees to provide tenant-based rental assistance to families whose income does not exceed 30% of the area median income by family size, as determined by the U.S. Department of Housing and Urban Development and as amended from time to time. Monthly rents must not exceed the HOME Program Rents in effect at the time of occupancy. Residential leases will not exceed one year in term. VI. PROVIDER PERFORMANCE UNDER THIS AGREEMENT Provider agrees and authorizes the County and HUD to conduct on-site reviews, examine client records including client applications and to conduct any other procedures or practices to assure compliance with these provisions. Provider agrees to not violate any State or Federal laws, rules or regulations regarding a direct or indirect illegal interest on the part of any employee or elected official of the Provider in the Project or payments made pursuant to this Agreement. Provider agrees that to the best of its knowledge, neither the Project nor the funds provided therefore, and the personnel employed in the administration of the program shall be in any way or to any extent engaged in the conduct of political activities in contravention of Chapter 15 of Title 5, United States Code, referred to as the Hatch Act. Provider shall adopt the audit requirements of the Office of Management and Budget (hereinafter "OMB") Circular A-110, "Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Nonprofit Organizations," and Circular A-122, "Cost Principles for Nonprofit Organizations," and OMB Circular A-133, "Audits of Institutions of Higher Education and Other Non-Profit Institutions." Provider shall submit to the County copy of said audit report. Provider shall permit the authorized representatives of the County, HUD and the Comptroller General of the United States to inspect and audit all data and reports of the Provider relating to its performance under the Agreement. County shall provide, upon request, copies of all laws, regulations and orders cited in this Agreement. Provider and County shall at all times observe and comply with Title 24 CFR Part 92 and all applicable laws, ordinances or regulations of the Federal, State, County, and local government, which may in any manner affect the performance of this Agreement, and Provider shall perform all acts with responsibility to the County in the same manner as the County is required to perform all acts with responsibility to the Federal government. Provider hereby assures and certifies that it will comply with the regulations, policies, guidelines and requirements with respect to the acceptance and use of HOME funds in accordance with the Act and the policies of the County as applicable to the HOME Program. Also, Provider certifies with respect to the Project that: 1. The Project will be conducted and administered in compliance with: Title VI of the Civil Rights Act of 1964 (Pub. L. 88-352, 42 U.S.C. Sec 2000d et seq.) and implementing regulations issued at 24 CFR Part I; Title VIII of the Civil Rights Act of 1968 (Pub. L. 90-208, 42 U.S.C. Sec 2000d at seq.), as amended; and that the Provider will administer all programs and activities related to housing and community development in a manner to affirmatively further fair housing; Section 109 of the Housing and Community Development Act of 1974, as amended; and the regulations issued pursuant hereto; Section 3 of the Housing and Urban Development Act of 1968, as amended; Executive Order 11246-Equal Opportunity, as amended by Executive Orders 11375 and 12086, and implementing regulations issued at 41 CFR Chapter 60; Executive Order 11063-Equal Opportunity in Housing, as amended by Executive Order 12259, and implementing regulations at 24 CFR Part 107; Section 504 of the Rehabilitation Act of 1973 (Pub. L. 93-112), as amended, and implementing regulations when published in effect; The Age Discrimination Act of 1975 (Pub. L. 94135), as amended, and implementing regulations when published for effect; The Fair Housing Act (42 U.S.C. 3601-20); 2. The Provider's notification, inspection, testing and abatement procedures concerning lead-based paint will comply with Title 24 CFR 92.355 and 24 CFR Part 35. Verification of lead work shall be on file for each participant. VII. ADMINISTRATION AND REPORTING REQUIREMENTS A. Provider shall administer the HOME funds in conformance with the regulations, policies, guidelines and requirements of Title 24 CFR 92, Part 85 and OMB Circular number A-110, A- 122, and A-133, as they relate to the acceptance and use of Federal funds for the Project. Provider shall submit all required information to the County demonstrating its compliance with applicable laws, rules and regulations, as specified in this Agreement; further, Provider shall submit to the County a quarterly Progress Report no later than the fifth day of the months of January, April; July; October until the activity has been reported completed. Miscellaneous Provisions a. Uniform Administrative Requirements. The Provider must comply with the applicable uniform administrative requirements of 24 CFR §92.505. b. Other Program Requirements. The Provider must carry out each activity in compliance with all Federal laws and regulations described in 24 CFR, Part 92, subpart H except that the subrecipient does not assume the responsibilities for environmental review or intergovernmental review. c. Affirmative Marketing. If HOME funds will be used for housing containing five (5) or more assisted units, The Provider must prepare and submit an Affirmative Marketing Plan to the County. d. Termination of Agreement. The full benefit of the Project will be realized only after the completion of the affordability periods for all Project dwelling units. It is the County's intention that the full public benefit of the Project shall be completed under the auspices of the Provider for the assisted units as follows: In the event that the Provider is unable to proceed with any aspect of the Project in a timely manner, and County and the Provider determine that reasonable extension(s) for completion will not remedy the situation, then The Provider will retain responsibility for requirements for any dwelling units assisted and County will make no further payments to the Provider. In the event that the Provider, prior to the contract completion date, is unable to continue to function due to, but, not limited to, dissolution or insolvency of the organization, its filing a petition for bankruptcy or similar proceedings, or is adjudged bankrupt or fails to comply or perform with provisions of this agreement, then the Provider shall, upon the County's request, convey to the County the Property assisted with HOME funds. Conveyance shall be at the sole discretion of County and on a Project dwelling unit by Project dwelling unit basis. Conveyance shall be on the terms set forth herein: Conveyance shall occur within thirty (30) days of County and The Provider' agreement of the Provider' inability to continue as a viable organization. The Provider shall convey the Property to the County by general warranty deed, free and clear of all liens and encumbrances of record except those which create a beneficial interest in County (Declaration of Restrictive Covenants and Deed of Trust). e. Default, Remedies. This Agreement may be terminated by anon-defaulting party upon an event of default hereunder, after written notice thereof and thirty (30) days grace period in which the defaulting party may act to cure. As used herein, the term "an event of default" shall mean and refer to a failure or act of omission by either party with respect to any undertaking, obligation, covenant or condition as set forth in this Agreement. With respect to any event of default, the non-defaulting party may exercise any right available to it at law or in equity with respect to such default. f. Books and Records. The Provider shall maintain records of its grant requirements under this contract for a period of not less than five (5) full fiscal years following the contract completion date. i. The Provider shall ensure access to records and financial statements, as necessary, to provide effective monitoring and evaluation of project performance. Additionally, The Provider shall submit a copy of its annual audit to the County. ii. Upon reasonable advance notice, County or its authorized representatives may from time to time inspect, audit, and make copies of any of The Provider records that relate to this contract. If any audit by County discloses that payments to The Provider were in excess of the amount to which The Provider was entitled under this contract, The Provider shall promptly pay to County the amount of such excess. If the excess is greater than 1% of the contract amount, The Provider shall also reimburse County its reasonable costs incurred in performing the audit. iii. The Provider shall maintain files of all tenants, regardless of length of occupancy, residing in assisted units. Documentation shall verify eligibility for federal assisted housing at the point of initial tenancy and every subsequent year thereafter for the period of affordability. Information maintained shall include: tenant income level; name of family members; ethnic data; family type - e.g. female head of household; disability status; and monthly rent. iv. The Provider shall maintain records verifying the affordability of the dwelling units. g. Notices. Any Notice shall be in writing and shall be given by depositing the same in the United States mail, post-paid and registered or certified, and addressed to the party to be notified, with return-receipt requested, or by delivering the same in person to an officer or principal of such party. Notice deposited in the mail in the manner here in above described shall be effective upon mailing. For purposes of Notice, the addresses of the parties shall, unless changed as hereinafter provided, be as follows: i. To the County: Orange County c/o Housing and Community Development Department P.O. Box 8181 Hillsborough, NC 27278 ATTN: Director ii. To The Provider: Housing for New Hope c/o Executive Director 18 West Colony Place, Suite 250 Durham, NC 27705 Either the County or The Provider may change the person or address to which any future Notice shall be given as herein provided. h. No Assignment. No transfer or assignment of the interest of The Provider in this Agreement shall occur without the prior written consent of the County; neither may The Provider assign this Agreement without the prior written consent of County. i. Conflict of Interest. The Provider agrees to abide by the provisions of 24 CFR 570.611 with respect to conflicts of interest, and covenants that it presently has no financial interest and shall acquire any financial interest, direct or indirect, that would conflict in any manner or degree with the performance of services required under this Agreement. The Provider further covenants that in performance of this Agreement no person having such a financial interest shall be employed or retained by The Provider hereunder. These conflicts of interest provisions apply to any person who is an employee, agent, consultant, or elected official or appointed official of the County, or any designated public agencies or subrecipients that are receiving funds under the County HOME Investment Partnership Program. j. Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns. k. Indemnification. To the extent legally possible, The Provider shall indemnify and hold County, its officers, agents, and employees, harmless from and against any and all claims, actions, liabilities, costs, including attorney fees and other costs of defense, arising out of or in any way related to any act or failure to act by The Provider, its employees, agents, officers, and contractors in connection with this contract. In the event any such action or claim is brought against County, The Provider shall, upon County's tender, defend the same at The Provider' sole cost and expense, promptly satisfy any judgment adverse to County or to County and The Provider jointly, and reimburse County for any loss, cost, damage, or expense, including attorney fees suffered or incurred by County. 1. Subcontracting. The Provider shall not subcontract work under this Agreement, in whole or in part, without the County's prior written approval. The Provider shall require any approved subcontractor to agree, as to the portion subcontracted, to comply with all applicable federal, state, and local laws, rules, ordinances, and regulations at all times and in the performance of the work and to comply with all applicable obligations of The Provider specified in this contract. Notwithstanding County's approval of a subcontractor, The Provider shall remain obligated for full performance of this contract and County shall incur no obligation to any subcontractor The Provider shall indemnify, defend, and hold County harmless from all claims of its contractors. m. No Joint Venture or Agency. The County and The Provider each agree and acknowledge that nothing contained herein or otherwise, including, without limitation, any act of the County or The Provider under this Agreement, shall be deemed or construed to create any relationship of joint venture, partnership or agency between the parties. n. Effect of Waiver or Forbearance. No failure by the County to insist upon the strict performance of any term or condition of this Agreement, or to exercise any right or remedy upon the breach by The Provider of any of its obligations, agreements, or covenants hereunder, shall be a waiver of such affected term or condition or of such breach; nor shall any forbearance by the County to seek a remedy for any breach by The Provider be a waiver by the County of its rights and remedies with respect to that or any other breach. o. Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of North Carolina. Any litigation arising out of this Agreement shall be brought in courts sitting in North Carolina, with venue in Orange County. p. Severability. The provisions of this Agreement are independent of and separable from each other, and no provision shall be affected or rendered invalid or unenforceable by the fact that for any reason any other provision may be invalid or unenforceable in whole or in part. If any provision of this Agreement or the application thereof to any person or circumstances shall, to any extent, be or become invalid or unenforceable, the remainder of this Agreement, or the application of such provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. The County and The Provider agree to substitute for such provision of this Agreement or the application thereof determined to be invalid or unenforceable, such other provision as most closely approximates, in a lawful manner, such invalid, illegal or unenforceable provision. If the County and The Provider cannot agree, they shall apply to a court of competent jurisdiction to substitute such provision as the court deems reasonable and judicially valid, legal and enforceable. Such provision determined by the court shall automatically be deemed part of this Agreement ab initio. q. Equal Opportunity. The Provider shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, political affiliation or belief, age, handicap, or familial status in the implementation of the Project. r. Headings. Headings are for convenience only and shall not be used to interpret or construe its provision. s. Gender; Singular and Plural. As used herein, the neuter gender includes the feminine and masculine. The masculine includes the feminine and neuter, and the feminine includes the masculine and neuter and each includes a corporation, partnership or other legal entity when the context so requires. The singular number includes the plural and vice versa, whenever the context so requires. t. Recording. The parties hereto agree that upon notice to the other and at its own cost and expense, a party may record this Agreement in the Office of Register of Deeds for Orange County. u. Compliance with Laws. To the extent applicable, each party hereto agrees to comply with all laws, ordinances and regulations affecting the Property from and after the date hereof. Without limiting the generality of the foregoing, The Provider shall comply with all federal, state and local laws, regulations and ordinances applicable to the expenditure of funds provided by the County, to purchase and develop the Property. v. Publicity; Signage. The Provider agrees to provide such publicity with respect to the County's participation in the development of the Property as the County shall reasonably require. Any signage at the Property shall acknowledge the County's role and contribution. w. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute on and the same instrument. x. No Third Party Rights. The parties hereto covenant and agree that nothing contained in this Agreement or any act by the County or The Provider shall be deemed or construed by the parties or any third party to create any relationship of third party beneficiary, including third party principal or agent, or to create any right, claim or cause of action against the County, The Provider or any of their respective officers, agents or employees by any third party. y. Performance of Government Functions. Notwithstanding anything in this Agreement which may be to the contrary, nothing contained in this Agreement shall in any way stop, limit or impair the County from exercising or performing any regulatory, policing or governmental powers or functions with respect to the Property including, without limitation, inspection of the Property in the performance of such functions. z. Duration of Agreement. This Agreement shall be effective on the date of execution and shall remain in effect during the period of affordability required by the Act under 24 CFR Part 92. bound, have set their hangs IN WITNESS WHEREOF, the parties hereto, intending to be legally bound, have set their hands and seals on the day and year first above written. ORANGE COUNTY, NORTH CAROLINA ATTEST: form and legality Moore, Staff Attorney This document has beeen preaudited in accordance with the N.C. Local Government and Fiscal Clarence Grier, Finance Director HO G FOR NEW HOPE, INC. . Pres den ATTEST: ~~~ yw~ Secretary EXHIBIT A HOME Program Funds Scone of Services Orange County HOME Tenant-Based Rental Assistance Housing for New Hone Management Plan The purpose is to provide rental assistance, rental deposits, and utility deposits to homeless and chronically homeless individuals of Orange County to improve their lives through obtaining and maintaining permanent housing. The targeted program participants are homeless and chronically homeless individuals and families that reside in Orange County. TENANT SELECTION PROCESS To qualify for Housing for New Hope's HOME Tenant-Based Rental Assistance (TBRA): • The individual or family must be literally homeless, residing in either an emergency shelter, transitional housing programs, or living in a place unfit for human habitation such as the streets, camps, cars, or condemned house. Priority for TBRA will be given to the chronically homeless. Homelessness will be determined by third-party verification or, lacking that, personal declaration. • Individuals and families can be self referred, referred by other Housing for New Hope programs, and referred by other agencies. • The individual or family income must be at or below 30 percent of the Area Median Income (AMI). Income will be determined using third-party income verification and/or by reviewing source documents evidencing annual income. • The individual or family must lack the financial resources and support networks needed to obtain housing. • Though lacking sufficient financial resources to access housing, an individual or family must demonstrate a "path to income." A couple of examples would be: enrollment in a job training program; a likelihood of increased hours with one's current job; a pending disability claim; other pending rental or income assistance. RE-HOUSING PROCESS There are five distinct phases to the re-housing process: 1) Referral & Intake; 2) Enrollment Process 3) Ready to Rent 4) Move-in; and 5) Follow-up. I) Referral and Intake: Staff will conduct an initial screening and then a more thorough intake is conducted to ensure eligibility and determine the range of needs. At this point, the client may be denied; and is given a list of items that they will need to qualify for the program. If accepted, the client enters the Enrollment process. 2) Enrollment: Staff works with the client to develop a housing and income plan as well as a list of all items to be completed to meet federal guidelines such as income and asset verifications. Upon completion of all items, the client is enrolled. 3) Ready to Rent: Staff works with the client to find housing, negotiate with the landlord, and help to gather needed furniture and furnishings when possible. Clients will be counseled regarding the appropriate unit size for the household and will review the rental lease to ensure that the language in the lease adheres to HOME TBRA guidelines. 4) Move-in: Client assumes tenancy in their apartments. 5) Follow-up: Periodic visits and/or phone calls are done by staff to trouble-shoot problems and identify emerging needs. A recertification is done every three months to determine compliance and future need. PROPERTY STANDARDS Provider shall ensure that all leased property meets the property standards in 24 CFR 92.251 and the lead-based paint requirements in 92.355 at the time of occupancy. A Section 8 Housing Quality Standards (HQS) inspection must be conducted prior to leasing to ensure compliance and at least once every year throughout the life of the project. Copies of inspection reports must be maintained in project files. CALCULATION OF RENTAL ASSISTANCE • Rental assistance will not exceed the difference between 30 percent of the household's adjusted monthly income and the cost of the rent, not to exceed fair market rent ($738 for one bedroom, and $827 for two-bedroom apartments). • Monthly rents must not exceed the HOME Program Rents in effect at the time of occupancy. • For individuals and families with no income, TBRA will pay for the full amount of rent, contingent on the demonstration of a "path to income." • Based on prior experience, Housing for New Hope anticipates providing rental assistance for an average of three months. • Clients will need to be recertified every three months to receive assistance for longer. EXHIBIT B Project Budget FY 2009/2010 2 months FY 2010/2011 EXPENSES Rental Assistance $4,200 $32,720 Rental De ooits $1,800 $6,000 Utili De ooits $1,000 $4,280 TOTAL $7,000 $43,000 Source of Funds Orange County HOME Consortium $50,000 Provider may not request disbursement of funds under this Agreement until the funds are needed for payment of eligible costs. Eligible costs are: payment for rent, security deposits and utility deposits only. The amount of each request must be limited to eligible costs as determined by the County's Housing and Community Development Department ("OCHCD"). No funds may be shifted between projects without the prior approval of the County. Funds may be shifted between line items of the Project without prior approval of the County only to the extent of "Minor Adjustments," defined as actions which do not result in a change in the Project and so long as such Minor Adjustments do not exceed ten percent (10%) of the line item total from which the funds are being removed or to which the funds are being added.