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HomeMy WebLinkAbout2011-379 Housing - Single Family Rehabilitation Program Funding Agreement 379 +G, J NORTH CAROLINA HOUSING FINANCE AGENCY SINGLE-FAMILY REHABILITATION PROGRAM (SFR 11 ) FUNDING AGREEMENT Recipient: Orange County Funding Agreement Number: SFRLP1120 Page I of 12 NORTH CAROLINA HOUSING FINANCE AGENCY 2011 SINGLE-FAMILY REHABILITATION PROGRAM (SFRII) FUNDING AGREEMENT This Funding Agreement(the "Agreement") is entered into on the 19th day of October,2011 between the North Carolina Housing Finance Agency (the "Agency"), a public agency of the State of North Carolina and Orange County(the "Member Organization" or"Member"). I Recitals Whereas,the Agency has received HOME Investment Partnerships Program ("HOME") funds (C.F.D.A.number 14.239) from the U.S. Department of Housing and Urban Development; and Whereas,the Agency uses HOME funds to provide loans and grants to program-eligible homeowners under its Single-Family Housing Rehabilitation Program("SFR"or"Program"),henceforth these funds shall be referred to as "SFR funds", or"SFR pool"; and Whereas, the Agency has adopted program guidelines ("SFR11 Program Guidelines") for the administration of SFR, which are incorporated into this Agreement by reference; and Whereas,the Agency has advertised the availability of funding under the Program; and, Whereas,the application of the Member identified on the cover page of this Funding Agreement was received, evaluated, and approved by the Agency, and said Member was invited to participate in the Program. { Now, Therefore, the Agency and the Member, both desiring to be legally bound, do, hereby, both mutually agree to the following: PART A: TIME OF PERFORMANCE, Section 1: Time of Performance (a) The Member shall begin performance of this Agreement on the 19th day of October,2011 and shall complete performance no later than the 31 st day of December, 2013 (Completion Date). Any funds,not committed under contract(pursuant to Section 3.12 of the Program Guidelines)to a unit as of the Completion Date, must be withdrawn from deposit and returned to the Agency; or, de- obligated from the Member's IDIS master account. Page 2 of 12 (b) The Agency has approved a set-aside of up to $160,000 of SFR funds for the Member. The Member may reserve funds from this set-aside on a unit-by-unit basis in accordance with Program Guidelines (PG) 3.2.2 & 3.2.3, until December 31, 2012. Any funds from this set-aside not reserved by that date shall be de-obligated and remain in the SFR pool for reallocation to those Members seeking funding for additional units. (c) Funds for additional units may be reserved from the pool,depending on availability,on a unit-by- unit,first come,first served basis in accordance with PG 3.2 up until December 31,2013. All units must be completed and closed out by June 30, 2014. PART B: PROGRAM FUNDING Section 2: Grant Amount The Agency has approved a set-aside of SFR funds from the SFR pool to Orange County in the principal amount of$160,000 (One Hundred Sixty Thousand Dollars). SFR funds are federal funds from the HOME Investment Partnerships Program. Although the Agency has approved a set-aside for a specific amount to the Member, the Member also has the opportunity to access additional funds from the SFR pool (depending upon fund availability) once they have met the threshold requirements outlined in SFRI 1 PG 3.2.2. Section 3: Use of Funds (a) SFR funds shall be used to provide assistance to low-income homeowners for: the repair and rehabilitation of their homes;the installation of energy-efficiency measures to decrease energy use in the unit; temporary relocation of households to standard housing, at reasonable cost, if in accordance with an Agency-approved written relocation policy; and lead-based paint evaluation and remediation. SFR funds shall pay for the hard and soft costs associated with housing rehabilitation of single-family owner-occupied dwelling units;making the units safe,decent and sanitary. SFR assistance shall be in the form of a loan to the homeowner,which covers the hard costs associated with the rehabilitation of the unit. SFR assistance used to pay soft costs associated with the rehabilitation of the unit shall be in the form of a grant to the homeowner. Page 3 of 12 (b) The Member must repay the Agency for any costs deemed ineligible by the Agency in its discretion. The Member must also repay the Agency for any expended funds for units that do not meet the ownership and property requirements as stated in PG 4.1.3 &4.1.4 (24CFR92.254(b), "Qualification as affordable housing:homeownership". Any funds repaid to the Agency shall be subject to imputed interest. Section 4: Disbursement of Funding (a) The Member cannot request disbursement of SFR funds until funds are needed for actual payment of eligible costs as defined in the SFR1 I Program Guidelines (PG 2.2.4). The amount of the request must be limited to the actual amount needed. Any interest earned on SFR funds held by the Member must be spent prior to using any other SFR funds. (b) SFR funds will be disbursed to the Member through electronic payments from the Agency and in accordance with PG 3.2. (c) The Member is eligible to request Program funds from the Agency only after the Agency has received this executed Agreement and a completed Signatory Form and Certification card ("Signatory card"). Section 5: Deposit of Funds (a) The Member shall establish a master account in an FDIC-insured banking institution to hold all Program funds. All interest earned on SFR funds shall be utilized in accordance with this agreement (b) All Program funds must be expended for eligible costs within twelve days of receipt. Any interest earned within the twelve-day period shall be retained as Program funds. Any interest earned on Program funds not expended for eligible costs within twelve days must be returned to the Agency. (c) The Agency reserves the right to require that all deposits made in the master account be available for withdrawal by the Member and the Agency. If the Agency chooses to exercise this option,an agreement for custodial accounts will be provided by the Agency. Page 4 of 12 PART C: FINANCIAL MANAGEMENT Section 6: Establishment and Maintenance of Accounting Records (a) The Member agrees to establish an account in its own general ledger for funds received under this Agreement, and SFR funds, including interest earned, shall be accounted for separately from all other monies. (b) The Member's financial management system shall provide for: (1) Accurate, current and complete disclosure of the financial results of the Program in accordance with the reporting requirements. (2) Records that identify adequately the source and application of funds for activities supported by the Program. (3) Effective control over and accountability for all funds received under this Agreement. (4) Comparison of actual outlays with budgeted amounts for the Program. (5) Accounting records that are supported by source documentation. (6) Systematic methods to assure timely and appropriate resolution of audit findings and recommendations. (c) The Member shall maintain financial records, supporting documents, statistical records and all other records pertinent to this grant for a period of five years (PG 3.6.1). The retention period starts from the date of the project closeout letter or from the time this Agreement is otherwise completed or terminated. If any litigation, claim or audit starts before the expiration of the five- year period,the records shall be retained until all litigation,claims,or audit findings involving the records have been resolved. The Agency,HUD and the Comptroller General of the United States, or any of their representatives or agents, have the right of access to any pertinent books, documents, papers or other records of the recipient in order to make audits, examinations, excerpts,and transactions.All invoices,vouchers,statements of cost,and records pertaining to the disbursement of funds are subject to audit by the Agency, HUD and the Comptroller General of the United States. (d) The Member agrees that its records, as they relate to this agreement, shall be accessible to the North Carolina State Auditor's Office in accordance with NC GS 147.64.7(4). Page 5 of 12 Section 7: Procurement Procedures The Member shall use Agency-approved written procurement and contracting procedures which provide that proposed procurement and contracting actions will be properly managed. The Member shall use written contracts with all firms providing services for rehabilitation work or professional services under the Program. Section 8: Annual Audit Report The Member must comply with OMB Circular A-133, 24CFR84.26 and 24CFR85.26; governmental organizations must comply with NC GS 159-34 as referenced in the SFR11 Program Guidelines, Section 3.8 Financial Audit Requirements. PART D: PROGRAM MANAGEMENT Section 9: Program Guidelines (a) The terms of the Agreement are subject,in all respects,to the SFRI l Program Guidelines,and all defined terms used in this Agreement shall have the same meanings as used in the SFR11 Program Guidelines. In the event the Program Guidelines are revised,the Agency will forward such revisions to the Member and,thereby, make them a part of this Agreement. Failure of the Member to comply with the terms and conditions of the SFR11 Program Guidelines, as supplemented or amended shall be an event of default by the Member under this Agreement. (b) The Agency may reduce, suspend,recapture,or otherwise change the disbursement of payments under this Agreement, and the Agency may terminate this Agreement if it determines that the Member has failed to comply with the Program Guidelines. Section 10: Program Documents The conduct of the Member's activity uses loans to finance eligible repairs for participants. Each SFR loan shall be evidenced by a promissory note. In order to secure the note,the Member shall require the execution and recordation of a lien(i.e.Deed of Trust)against a property being improved. The Agency shall provide prepared-standard deeds of trust and promissory notes and other ancillary loan documents to the Member. The Member is required to facilitate the loan closing, record the Deeds of Trust and submit the documents to the Agency in accordance with PG 4.6&4.7. Additionally,the conduct of the Page 6 of 12 Member's activity uses grants to fund the soft costs (work write-ups, cost estimates, lead-based paint inspections,energy audits,pre-rehab unit inspections,etc.)associated with housing rehabilitation. The Member is responsible for facilitating the execution of the Agency-prepared Grant Agreement. Section 11: Member Responsibility (a) The Agency expects the Member to be active in the management and monitoring of the activity funded with the grant including ensuring Program eligibility of homeowners, facilitating loan closings,inspecting work performed and training and supervising its staff adequately.The Agency has received and reviewed information that describes the Member's operating plan for staffing and administering its Project. The Agency has relied on the information provided by the Member in making its decision to approve the grant and execute this Agreement. The Member must notify the Agency about any material changes in its operating plan, any events that may have a significant impact on the Project, or any other changes to information provided in the Members original SFR Application for Funding.. (b) The Member shall execute a Written Agreement with each Homeowner to be assisted, prior to disbursing any funds for the unit. The Written Agreement is provided by the Agency and complies with 24CFR92.504(5)(ii). (c) The Member shall comply with all Federal and State privacy laws regarding the protection of private,personal information. (d) If the Member is monitored by the Agency or an authorized representative and if a lack of proper financial or project controls is observed,the Agency reserves the right to consider this agreement breached and may hold disbursement requests from the Member until such issues are resolved. Section 12: Reports (a) The Member shall submit to the Agency Unit Completion Reports in accordance with PG 3.10.2 (b) The Member shall submit a Certification of Completion and Final Cost to the Agency not later than 6 months following the Completion Date or termination of this Agreement. The final certification shall contain a summary of the use of funds provided under this Agreement. Page 7 of 12 (c) The Member shall submit to the Agency such revisions and updates of reports as may be necessary as a result of project audits or reporting errors. Section 13: Right to Inspect The Agency,HUD and the Comptroller General of the United States,or their authorized representatives or agent, shall have the right to inspect the housing rehabilitation work performed with SFR funds provided under this Agreement for the purpose of determining if work is being carried out in accordance with the SFR11 Program Guidelines and the HOME regulations. All dwelling units rehabilitated under SFRI I must meet the SFR Rehabilitation Standards in accordance with PG 2.5. PART E: GENERAL CONDITIONS Section 14: Administrative and Other Federal Requirements (a) Housing assisted with HOME funds is subject to the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846), the Residential Lead Based Paint Hazard Reduction Act of 1992 (42 U.S.C.4851 —4856),and the implementing regulations at 24CFR35,subparts A,B,J,K,M and R. (b)' If the Member is a governmental body, it must comply with OMB Circular A-87 and these sections of 24CFR85: 85.6, 85.12, 85.20, 85.22, 85.26, 85.32-85.34, 85.36, 85.44, 85.51 and 85.52. If the Member is a not-for-profit organization it must comply with OMB Circular A-122 and the following sections of 24CFR84: 84.2, 84.5, 84.13 - 84.16, 84.21, 84.22, 84.26 - 84.28, 84.30, 84.31, 84.34—84.37, 84.40—84.48, 84.51, 84.60— 84.62, 84.72 and 84.73. (c) The Member must comply with 24CFR92.3 51 with regards to actions taken to assure MBE/WBE are utilized when possible in the procurement of goods and services. The Member must maintain sufficient records of affirmative marketing and MBE/WBE activity in accordance with 24CFR92.508(7)(ii). (d) Debarred, suspended or ineligible contractors and/or participants cannot be involved in the activities of the Member for which funds are provided under this agreement. (e) The Member will make a good-faith effort to, on a continuing basis, maintain a drug-free workplace per the requirements of 24CFR21(B). Page 8of12 Section 15: Prohibited Activity (a) None of the funds provided under this Agreement shall be used in the performance of this Agreement for any partisan political activity, or to further the election or defeat of any candidate for public office. (b) There shall be no religious instruction conducted in connection with the performance of this Agreement or the use of SFR funds. (c) The Member shall not discriminate against any person employed in the performance of this Agreement,or against any applicant for assistance under this Agreement because of race,sex,age, creed, color, physical handicap or national origin. The Member will ensure that applicants for SFR assistance are processed and that employees are treated during employment,without regard to race, sex, age, creed, color, physical handicap or national origin. (d) No employee,officer or agent of the Member shall participate in the selection,or in the award or administration of a contract funded by this Agreement if a conflict of interest, real or apparent, would be involved. (e) Before SFR funds may be disbursed,each private,nonprofit Member must be in compliance with General Statute 143C-6-23. This statute requires that the Member submit to the Agency a notarized copy of the Member's policy addressing conflicts of interest that may arise involving any Member's management staff,board of directors or other governing body. The policy shall address situations where any of these individuals may directly or indirectly benefit,except in their official capacity, from the disbursement of State funds, and shall include actions to be taken to avoid conflicts of interest or the appearance of impropriety. (f) No person providing consulting services in an employer-employee type relationship shall receive more than reasonable compensation for personal services paid with SFR funds. In no event, however, shall such compensation exceed the limits in effect under the provisions of any applicable statute. Such services shall be evidenced by written agreements between the parties which detail the responsibilities, standards and compensation. Page 9 of 12 Section 16: Publicity The Member may publicize its participation in the Program and the conduct of activities under this Agreement without prior review by the Agency,provided that all communications contain the following language: "This program was sponsored by Orange County, with funds provided by the N.C. Housing Finance Agency." Copies of publications or news releases shall be furnished to the Agency. Section 17: Contract Changes Any proposed changes in this Agreement shall be in writing, submitted to and approved and executed by the Agency before the performance of any work involved in the proposed change. Section 18: Assignment This Agreement shall be binding on and inure to the benefit of the Agency,its successors and assigns. The Member may not assign all or any part of its interest in this Agreement or delegate any duty or obligation hereunder without the prior written consent of the Agency. Section 19: Termination of Contract (a) The Agency and the Member may cancel or terminate this Agreement by written mutual consent at any time prior to the date of completion. Upon said termination,the Member may be required to return SFR funds to the Agency. (b) If,through any cause,the Member shall fail to fulfill in a timely and proper manner the obligations under this Agreement,or if the Member shall violate any of the stipulations under this Agreement, the Agency shall have the right to terminate this Agreement by giving written notice to the Member of such termination and the effective date thereof. (c) In the event of termination, all property, finished or unfinished documents, data and reports purchased or prepared by the Member under this Agreement shall,at the Agency's option,become the Agency's property. The Member shall be entitled to any eligible unreimbursed expenses necessarily incurred in the satisfactory performance of this Agreement. (d) In the event of termination, the Member shall not be relieved of liability to the Agency for damages sustained by the Agency by virtue of any breach of the Agreement by the Member. The Agency may withhold any reimbursement to the Member for the purpose of a set-off until such time as the exact amount of damages due the Agency from the Member is determined. Page 10 of 12 Section 20: Indemnification The Member agrees to hold harmless and indemnify the Agency from any and all claims,'including reasonable attorney's fees, for any injury or damage, whatsoever, which may arise in connection with work performed under this Agreement or pursuant to the Member's activity. Section 21: Litigation The Member represents and warrants to the Agency that there is no pending or active litigation against the Member that may jeopardize or adversely affect this Agreement or the completion of activities hereunder. Section 22: Notice Any requirement to provide notice under this Agreement shall be deemed to have been met if delivered to the following parties at the following addresses: Member Agency Mr. Frank Clifton, County Manager Mr. Michael Handley, S.H.R. Officer Orange County North Carolina Housing Finance Agency P.O. Box 8181 3508 Bush Street Hillsborough,NC 27278 Raleigh,NC 27609 i Page I1 of 12 Section 23: Governing Law This Agreement shall be governed by,construed and enforced in accordance with the substantive laws of the State of North Carolina. Each party expressly consents to the jurisdiction of the State of North Carolina. Section 24: Entire Agreement This Agreement consists of 12 pages,including the cover page,and is the entire Agreement between the Agency and the Member. In witness whereof,the parties below have executed this Agreement on the date first written above. Recipient IAAV-O4-- By: Attest Its: County Manager North Carolina Housing Finance Agency By: Attest Its: Director of Strategic Investment Page 12 of 12