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Home My WebLink About2011-192 Housing - Community Home Trust, Inc. for the Orange County HOME Program~, ~~ CHDO AGREEMENT Orange County HOME Program This is an AGREEMENT between ORANGE COUNTY, a body politic and corporate, a political subdivision of the State of North Carolina, (hereinafter referred to as the "County") and Community Home Trust, Inc., a North Carolina non-profit corporation des' n ted as and hereinafter referred to as "CHDO". The effective date of this agreement is ~~ L i This Agreement shall supercede any and all agreements between these parties. WITNESSETH: WHEREAS, the County has entered into an Agreement to receive funds under the HOME Investment Partnerships Program (hereinafter called the "HOME" Program) from the US Department of Housing and Urban Development (hereinafter called "HUD"); and WHEREAS, the County has set aside a portion of its HOME Program funds for Community Housing Development Organizations (CHDOs) in accordance with the National Affordable Housing Act of 1990, as amended, (hereinafter called the "ACT"); and WHEREAS, the County has designated the above named organization as a Community Housing Development Organization or CHDO pursuant to HUD rule 24 CFR Part 92 which sets forth regulations to implement the HOME Program; and WHEREAS, the County desires to engage the CHDO to render certain assistance as an CHDO, sponsor or developer of housing in conformance with 24 CFR Part 92; NOW, THEREFORE, the parties hereto do hereby agree as follows: A. USE OF HOME FUNDS: (1) The CHDO shall propose projects which meet HOME requirements and conform to the County's Consolidated Plan. (2) The County, at its discretion, shall allocate HOME funds to the CHDO including all or any part of any CHDO set-aside, in amounts determined appropriate by the County to best meet HOME Program objectives. (3) In accordance with HUD guidelines, allocations of HOME funds to a CHDO may take one or more of these forms: project assistance (interest bearing loans, no-interest bearing loans, deferred payment loans, advances, interest subsidies, grants as well as direct equity investments); operating subsidies; and development assistance (technical assistance, site control loans or seed money loans). (4) The CHDO shall perform the projects or tasks related to its allocation of HOME funds according to the schedule and within the budget submitted as a part of the annual application process as outlined in Attachment A which is hereby incorporated by reference. B. AFFORDABILITY: (1) The CHDO shall ensure that housing it assists with HOME funds meets the affordability requirements of 24 CFR Parts 92 or 94, as applicable. (2) The CHDO shall repay its award of HOME funds in full to the County if the housing does not meet the affordability requirements for the specified time period. (3) If the CHDO is undertaking rental projects, the CHDO shall establish affordable initial rents and procedures for rent increases. (4) If the CHDO is undertaking homeCHDOship projects for sale to homebuyers, the CHDO shall set forth resale or recapture requirements that conform to 24 CFR Part 92:254(a). C. PROJECT REOUIREMENT5: (1) The CHDO shall comply with project requirements specified in 24 CFR subpart F, as applicable in accordance with the type of project assisted. (2) The amount of HOME funds the CHDO may invest on a per-unit basis in affordable housing may not exceed the per-unit dollar limits established by HUD. D. PROPERTY STANDARDS: (1) The CHDO shall ensure that the housing meets the property standards in 24 CFR 92.251 and the lead based paint requirements in 24 CFR 92.355 upon project completion. (2) The CHDO shall maintain rental housing in accordance with the standards in 24 CFR 92.251 for the duration of the affordability period. E. AFFIRMATIVE MARKETING: (1) If a project contains five (5) or more HOME assisted units, the CHDO must take full responsibility for affirmatively marketing the housing. (2) Affirmative marketing steps shall consist of actions to provide information and otherwise attract eligible persons in the housing market to the available housing without regard to race, color, national origin, sex, religion, familial status or disability. F. RECORDS AND REPORTS: (1) The CHDO shall maintain and, at reasonable times and places, make available to the County such records and accounts, including property, personnel, and financial records, the 2 County and/or State and Federal agencies deem necessary to assure a proper accounting for all HOME Program funds. (2) The CHDO shall provide the County with information necessary for it to complete the Consolidated Annual Performance and Evaluation Review report and other reports required by HUD. (3) The CHDO shall provide an annual audit report performed in compliance with OMB Circular A-133. (4) The CHDO shall allow the County to conduct monitoring and evaluation activities as determined necessary by the County and HUD. (5) The CHDO shall keep a fully executed copy of this Agreement and a copy of the HOME regulations on file in their place of business at all times. (6) The CHDO shall keep all documents used to determine their status as a Community Housing Development Organization as defined under 24 CFR Part 92 current and available for inspection by the County for the duration of this Agreement. G. ENFORCEMENT OF THE AGREEMENT: (1) The CHDO shall provide a means of enforcement of the affordable housing requirements that may include liens on real property, deed restrictions or covenants running with the land. (2) The affordability requirements on rental housing in 24 CFR 92.252 must be enforced by deed restrictions. (3) As specified above, the CHDO shall repay its award of HOME funds in full to the County if the housing does not meet affordability requirements for the specified time period. H. REQUESTS FOR DISBURSEMENT OF FUNDS: (1) The CHDO shall request disbursements of HOME Program funds only at the time funds are needed to pay eligible costs. (Requested funds are limited to the amount needed to cover these costs and which can be expended within 10 days from the date funds are disbursed to the County from the US Treasury.) (2) From time to time, but not more than once each month, the CHDO may submit to the County a request for reimbursement of operating expenses for the preceding calendar month, if applicable. (3) The County shall reimburse the CHDO in an amount approved by the County within fifteen (15) calendar days after receipt of a request for reimbursement, except for conditions beyond the County's control. petition for bankruptcy or similar proceedings, or is adjudged bankrupt or fails to comply or perform with provisions of this agreement, then the CHDO shall, upon the County's request, convey to the County the Property assisted with non-operating HOME funds. Conveyance shall be at the sole discretion of County and on a Project dwelling unit by Project dwelling unit basis. (2) Conveyance shall be on the terms set forth herein: Conveyance shall occur within thirty (30) days of County and the CHDO's agreement of the CHDO's inability to continue as a viable organization. The CHDO 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). P. HOLD HARMLESS. (1) The County shall not be liable for any and all claims, actions, suits, charges, and judgments whatsoever arising out of the performance or nonperformance of this Agreement by the CHDO, its employees, officers or agents. (2) The CHDO shall hold harmless, defend and indemnify the County, its officers, agents and employees from all such claims, actions, suits, charges, and judgments under this Agreement. Q. AMENDMENTS: (1) The County and the CHDO may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, are executed in writing, and signed by a duly authorized representative of both organizations. (2) The County, may at its discretion, amend this Agreement to conform with Federal, State or local government guidelines, policies and available funding amounts, or for other reasons. (3) Amendments to this Agreement shall not invalidate nor relieve or release the County or CHDO from its obligations under this Agreement. (4) If any amendments result in a change in HOME funding, a new attachment shall be executed with corresponding changes to the project or tasks, schedule and budget that now appear in Attachment A. R. MISCELLANEOUS PROVISIONS: (1) Service of all notices under this Agreement shall be sufficient if given personally by registered or certified mail, return receipt requested, and mailed to the party involved at the address and to the attention of the person set forth below, or to such other person or address as said party may provide in writing from time to time. 6 (2) Any such notice mailed to such address shall be effective upon the date received as shown by the returned receipt or otherwise. COUNTY Orange County c/o Housing, Human Rights and Community Development Department P.O. Box 8181 Hillsborough, NC 27278 ATTN: Director CHDO Community Home Trust P.O. Box 307 Carrboro, NC 27510 ATTN: Executive Director 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 ORTH CAROLINA Frank W. Clifton, r ,County Manager ®t~~~~e ' ~o~ r~ ATTEST: ~` ~i, ~, . onna Baer v ~ ' ~'r _ ~'.~ :,, "`, s~ Clerk to the Board of Commissioners A ov as to form and legality or~~~e Annette oore, Staff Attorney This document has been preaudited in accordance with the N.C. Local Government and Fiscal Control Act. ~A.rG•.-cam ,~, ,~-- ,Clarence Grier, Financial Services Director HOME TRUST, INC. f~ a~Y ~~ t cfZ_ President ATTEST: ATTACHMENT A FY 2010 - 2011 Proiect Budget Operating Support $30,000 Homebuyer Assistance $75,000 Source of Funds Orange County HOME CHDO Funds $105,000