HomeMy WebLinkAboutAgenda - 06-16-20; 8-o - North Carolina Housing Finance Agency (NCHFA) – 2020 Essential Single-Family Rehabilitation Loan Pool (ESFRLP20) Award 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 16, 2020
Action Agenda
Item No. 8-o (Proposed)
SUBJECT: North Carolina Housing Finance Agency (NCHFA) — 2020 Essential Single-
Family Rehabilitation Loan Pool (ESFRLP20) Award
DEPARTMENT: Department of Housing and
Community Development
ATTACHMENT(S): INFORMATION CONTACT:
Attachment 1: ESFRLP20 Assistance Emila Sutton, Director, Housing and
Policy Community Development, (919) 245-
Attachment 2: ESFRLP20 Procurement and 2490
Disbursement Policy
Attachment 3: Funding and Written
Agreement Example
(ESFRLP17)
PURPOSE: To approve the 2020 Essential Single-Family Rehabilitation Loan Pool (ESFRLP20)
Assistance Policy and ESFRLP20 Procurement and Disbursement Policy and authorize the
County Manager to sign the Funding and Written Agreement for the ESFRLP20 award from the
North Carolina Housing Finance Agency (NCHFA).
BACKGROUND: In February 2020, Orange County received a notice of award from NCHFA for
the 2020 Essential Single-Family Rehabilitation Loan Pool (ESFRLP20). As a member of the loan
pool, $190,000 has been set aside for Orange County for projects to be reserved on a unit-by-unit
basis. In accordance with NCHFA's program guidelines, Orange County may reserve funds for
up to five (5) units under the $190,000 set-aside. Funds for additional units may be reserved from
the loan pool, depending on availability, on a unit-by-unit and first come, first served basis until
December 21, 2022.
Orange County's application for funding stated that matching funds of$50,000 would be available
to assist with rehabilitation of the proposed housing units. The Housing and Community
Development Department Local Single-Family Rehab account currently has about $240,000
available for rehabilitation projects (which will roll forward to FY 2020-21). The $50,000 match
funds is proposed to be allocated from this account.
NCHFA requires recipients of ESFRLP20 awards to complete a packet of Post Approval
Documentation, which includes documentation that an Assistance Policy and a Procurement and
Disbursement Policy have been adopted. These policies describe how eligible applicants are
selected for the program, and how the bid solicitation and payment processes for the rehabilitation
work are conducted, respectively. These two policies are attached for review and approval.
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Once the Post Approval Documentation packet is reviewed and approved by NCHFA, Orange
County must execute a Funding and Written Agreement with NCHFA. As NCHFA will not provide
the agreement for the 2020 program cycle until it has approved the Post Approval Documentation,
the agreement from ESFRLP17 is attached as an example.
FINANCIAL IMPACT: This $190,000 award will increase funds available in Orange County for
the repair of substandard housing. The $50,000 matching funds are already in the Local Single-
Family Rehab account.
SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable to
this item:
• GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND
INEQUITY
The fair treatment and meaningful involvement of all people regardless of race or color;
religious or philosophical beliefs; sex, gender or sexual orientation; national origin or ethnic
background; age; military service; disability; and familial, residential or economic status.
• GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY
The creation and preservation of infrastructure, policies, programs and funding necessary
for residents to provide shelter, food, clothing and medical care for themselves and their
dependents.
The creation and preservation of affordable housing options helps to meet a basic need and
advances economic self-sufficiency.
• GOAL: CREATE A SAFE COMMUNITY
The reduction of risks from vehicle/traffic accidents, childhood and senior injuries, gang
activity, substance abuse and domestic violence.
Affordable housing options allow individuals to reduce risks associated with being un-housed.
ENVIRONMENTAL IMPACT: There are no Orange County Environmental Responsibility Goal
impacts applicable to this item.
RECOMMENDATION(S): The Manager recommends that the Board:
1. Adopt the Assistance Policy and Procurement and Disbursement Policy for ESFRLP20
and authorize the Chair to sign the policies; and
2. Authorize the County Manager to sign the ESFRLP20 Funding and Written Agreement,
once received, and any renewals of the agreement.
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Attachment 1
Orange County Assistance Policy
Essential Single-Family Rehabilitation Loan Pool 2020
What is the Essential Single-Family Rehabilitation Loan Pool?
Orange County has been awarded Membership by the North Carolina Housing Finance Agency(NCHFA)
under the 2020 cycle of the Essential Single-Family Rehabilitation Loan Pool (ESFRLP20).This program
provides Members with funds via a "loan pool"to assist with the rehabilitation of moderately deteriorated
homes that are owned and occupied by lower-income, special need households ESRLP20 assists eligible
households by facilitating aging in place, meeting minimum housing code requirements, promoting long-
term affordability, lowering operating costs, and stabilizing pre-1978 homes that include children aged six
or under whose health is threatened by the presence of lead hazards.
Orange County has been allocated an initial set-aside of$190,000 to be used for rehabilitation of five (5)
homes in Orange County. After demonstrating successful use of this allocation,the County may access
additional funds, when available, on a unit-by-unit basis from the ESFRLP loan pool to assist additional
homes.
This Assistance Policy describes who is eligible for assistance under ESFRLP20, how applications for
assistance will be ranked, what the terms of assistance are, and how the rehabilitation process will be
managed. Orange County has designed the ESFRLP20 project to be fair, open and consistent with its
approved application for funding and with ESFRLP20 Program Guidelines.
The funds provided by NCHFA come from the U.S. Department of Housing and Urban Development's
(HUD) HOME Investment Partnerships Program (HOME)for construction-related costs (hard costs) and will
be provided as no interest, no payment loans,forgiven at the rate of$5,000 per year. Non-construction-
related costs (soft costs including lead/asbestos inspections/clearances, radon testing and environmental
reviews)will be provided in the form of a grant.
EMERGENCY and HEALTH Notifications: Due to the current COVID-19 pandemic, increased awareness of
the need to protect Orange County representatives and the homeowners they serve from various health
related exposures has become more apparent than ever. Homeowners participating in the ESFRLP
program must agree to follow all local, state and federal guidelines for emergency preparedness
surrounding the COVID-19 pandemic and any other emergency declared that includes their property
address for the duration of construction on the property.
Who is Eligible to Apply?
There are three major requirements to be eligible for ESFRLP17 assistance:
1) The housing unit to be rehabilitated with ESFRLP funds must be located in Orange County, and
must be owner-occupied.The household occupying the unit must have an elderly, disabled and/or
veteran (see definitions)full-time household member or a child aged 6 or under threatened by
lead hazards in the home;
2) The gross annual household income must not exceed 80%of the Area Median Income for the
County(see income limit table on the following page) and;
3) The cost of rehabilitation cannot exceed the ESFRLP Program limit of$30,000 and must include all
Essential Rehabilitation Criteria as described in the ESFRLP20 Administrator's Manual (available
online at www.nchfa.com).
Unfortunately, not all homes can be rehabilitated to meet the Essential Rehabilitation Criteria with the
limited funding available. Some otherwise-eligible households may be deemed ineligible for assistance
because their homes fail this test.
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What Types Of Houses Are Eligible?
Properties are eligible only if they meet all of the following requirements:
• The property must require at least$5,000 of improvements to meet ESFRLP Property Standards or
the local minimum housing code.
• Site-built and off frame modular units are eligible for assistance. Manufactured housing is eligible
for assistance if the foundation and utility hookups are permanently affixed including removal of
all transporting equipment(e.g., wheels, axles,tongue) and installation of a full masonry
foundation and tie-downs.
• No more than fifty percent (50%) of the total area of the unit may be used for an office or business
(e.g., day care, hair salon, room rental, etc.). Program funds may only be used to improve the
residential exterior, interior, and systems portion of mixed-use buildings.
• The property must be free of environmental hazards and other nuisances as defined by all
applicable codes or regulations, or any such hazards or nuisances must be corrected as part of the
rehabilitation of the home. Orange County's Rehabilitation Specialist will determine the presence
of any known environmental hazards/nuisances on the site and if they can be removed through
rehabilitation.
• Properties cannot be located in the right-of-way of any impending or planned public
improvements. Orange County staff will assist in making this determination.
• The property cannot be located on a site that is endangered by mudslides, landslides or other
natural or environmental hazards. If needed, the Rehabilitation Specialist will work with the
homeowner to make this determination.
• The property may be located in the 100-year flood plain if the lowest finished floor level (verified
by an elevation certificate provided by the homeowner) is above the base flood elevation and the
property will be covered by flood insurance. The property must be in compliance with Orange
County's flood plain ordinance. All things considered equal, properties located outside the 100-
year flood plain will be given priority over properties located in the 100-year flood plain. Orange
County will verify whether the home is in the flood plain.
• The property cannot have been repaired or rehabilitated with public funding of$30,000 or more
within the past ten (10)years without NCHFA approval.
2020 Income Limits for Orange County's
Essential Single-Family Rehabilitation Loan Pool*
Number in 30%of Median 50%of Median 80%of Median
Household Income Income Income
1 $17,850 $29,700 $47,500
2 $20,400 $33,950 $54,300
3 $22,950 $38,200 $61,100
4 $25,450 $42,400 $67,859
5 $27,500 $45,800 $73,300
6 $29,550 $49,200 $78,75
7 $31,600 $52,600 $84,150
8 $33,600 $56,000 $89,600
*Income limits are subject to change based on annually published HUD HOME Limits.This update will not require a re-approval by
the governing authority
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How are applications ranked?
There are many more ESFRLP-eligible households (with eligible houses)than can be assisted with the
available funds.Therefore, Orange County has devised the following priority system to rank eligible
applicants, determine which of them will be selected for assistance and in what order. Under this system,
applicants will receive points for falling into certain categories. Applications will be ranked according to
which receive the most points. If there are more eligible applicants with eligible houses than can be
treated with existing funding, Orange County may be able to treat additional houses with unrestricted pool
funds Pool applicants will come from the original applicant list and be considered according to which
received the most points. If alternate pool applicants are not identified on the original applicant list and
must be solicited,the solicited, eligible, pool applicants will be selected on a first come, first to qualify
basis.
Priority Ranking System for Orange County's
2020 Essential Single-Family Rehabilitation Loan Pool
Emergency Need Points
Threat of imminent eviction/removal; must meet Special Need(s) and income 8
requirements; applications received at any time
Special needs (for definitions,see below) Points
Household with a child under age 6 with lead hazards in the home 4
Household member who is elderly(62 or older) 4
Household member with a disability 4
Household member who is a Veteran 4
Multiple household members who are elderly, Veterans, or have a disability 4
Income(see income table above)
Less than 30%of County Median Income 4
30%to 50%of County Median Income 4
50%to 80%of County Median Income 4
Definitions under EESFRLP are:
• Elderly:An individual aged 62 or older.
• Person with a disability:A person who has a physical, mental, or developmental disability that
greatly limits one or more major life activities, has a document of such impairment, or is regarded
as having such impairment.
• Head of household:The person or persons who own(s)the house.
• Household member. Any individual who is an occupant (defined below) of the unit to be
rehabilitated shall be considered a "household member" (the number of household members will
be used to determine household size and all household members are subject to income
verification).
• Occupant:An occupant is defined as any immediate family member(mother,father, spouse,
son/daughter of the head of household)who has resided in the dwelling unit for at least three (3)
months prior to the submission of the family's application.
• Veteran:A person who is a military veteran, is defined as one who served in the active military,
naval, or air service (i.e.,Army, Navy, Air Force, Marine Corps, and Coast Guard; as a
commissioned officer of the Public Health Service; or as a commissioned officer of the National
Oceanic and Atmospheric Administration or its predecessors), and who was discharged or released
there from under conditions other than dishonorable. Provide DD-214 form to demonstrate.
• Emergency:A situation in which a household member has an immediate threat of being evicted or
removed from a home due to health or safety issues within a timeframe that the program can
complete a repair to stop eviction or removal.These applications will be received at any time
during the funding cycle and elevated based on the ability of the program to complete the work in
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a timely manner that meets the goal of assisting homeowners to remain in their home.This may
be documented with a doctor's letter or eviction notice.
Recipients of assistance under ESFRLP will be chosen by the above criteria without regard to race, color,
religion, national origin, sex,familial status, and disability.
What Are The Terms of Assistance Under ESFRLP?
The form of ESFRLP assistance is a 0% interest,forgivable loan covering the hard costs associated with the
rehabilitation of the home and a grant for the soft costs.These will be two separate documents or sets of
documents.
The Loan: NCHFA will create loan documents for the homeowner(s) including a Promissory Note and Deed
of Trust covering hard costs for the rehabilitation in an amount not to exceed $30,000.This loan covering
the hard costs remains 0% interest and forgivable at$5,000 per year for as long as the owner resides in the
home or until the balance is reduced to$0.The term of the loan is dependent upon the loan amount and
the number of years it takes to bring the balance of the loan to $0 when forgiven at$5,000 per year. For
example, if the amount of the loan is $21,452,then the term is five (5)years: $20,000 forgiven over the
first four(4)years and $452 forgiven at the end of the 5th year.The maximum term of the loan will be six
(6) years.
As long as the borrower lives in the home, no payments on the loan will be required. If the recipient
prefers,the loan can be paid off at any time to NCHFA, either in installments or as a lump sum payment.
Furthermore, under certain circumstances NCHFA may allow assumption or refinancing of the loan. Should
an heir inherit the property and choose to live in the house as their permanent residence, they may
assume the loan without being income eligible. However,the lien remains on the property.A buyer who
may wish to buy the property to live in may assume the loan so long as they can document that they are
income-eligible (<_ 80%AMI). Default can occur if the property is sold or transferred to another person
and/or if the borrower fails to use the home as a principal residence, without prior written approval of
NCHFA.
The Grant:To pay for soft costs including application outreach/intake/management, environmental
reviews/inspections/testing and project assessment/documentation/estimating/bidding, NCHFA will
create a Grant Agreement not to exceed $10,000. The grant has no repayment or recovery terms.
What Kinds Of Work Will Be Done?
Each house selected for assistance must be rehabilitated to meet ESFRLP Rehabilitation Criteria.That
means every house must, upon completion of the rehabilitation:
• Meet the more stringent requirements of either NCHFA's Essential Property Standard or Orange
County's Minimum Housing Code.These are so-called "habitability standards"that set minimum
standards for decent, safe and sanitary living conditions. Additionally,the home must meet
applicable Lead Based Paint regulations 24 CFR Part 35.
• Retain no "imminent threats"to the health and safety of the home's occupants or to the home's
"structural integrity". An example of an imminent threat to occupants as well as to the home's
structural integrity is an infestation of insects or a crawlspace that is too damp.
These requirements are spelled out in full in the ESFRLP Administrator's Manual which you may view, at
reasonable times, upon request, at the Housing and Community Development office of Orange County or
anytime online at www.nchfa.com.
In addition to the above items that must be done to satisfy NCHFA requirements,the scope of work may
include approved items meant to reduce future maintenance and operational costs or to further protect
homes from natural disasters and/or home modifications designed to enable greater accessibility for
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household members to function more independently as they age.
Once the rehabilitation is complete, major systems in the home that, with reasonable maintenance and
normal use, should be capable of lasting another five (5)years include: structural support, roofing,
cladding and weatherproofing, plumbing, electrical and heating/cooling systems.
Of course, contractors performing work funded under ESFRLP are responsible for meeting all local
requirements for permits and inspections. All work done under the program must be performed to meet
NC State Residential Building Code standards.This does not mean, however,that the whole house must be
brought up to current Building Code Standards. Upon the date of approval by Orange County of the
contractor's request for final payment, a one-year warranty on all products and workmanship will begin.
What About Lead Based Paint?
Until it was discovered to be a health hazard, lead was used for centuries to make house paints. Now we
know that lead exposure is a serious problem for everyone and especially small children. Selling lead paint
was outlawed in 1978, but many older buildings still contain lead paint and children are still being
poisoned.
Under ESFRLP, a lead hazard evaluation must be performed on every home selected for rehabilitation that
was built before 1978.The specific type of evaluation and the appropriate lead hazard reduction work
performed will depend on the total amount of Federal funds used to rehabilitate the home, as per 24 CFR
Part 35. If required, lead-based paint hazard reduction and/or abatement will be performed by contractors
who are trained and certified to perform such work.
It may be necessary for the household to relocate during the construction process for protection against
lead poisoning. If relocation is required, it shall be the responsibility of the homeowner to pay for the
relocation.
Who Will Do The Work On The Homes?
Orange County is obligated under ESFRLP to ensure that quality work is done at reasonable prices and that
all work is contracted through a fair, open and competitive process.
To meet these requirements, Orange County will invite bids only from licensed general contractors who
are part of an "Approved Contractors Registry". For additional information about procurement and
disbursement procedures, please refer to the Orange County ESFRLP20 Procurement and Disbursement
Policy.
• All qualified members of the Approved Contractors Registry will be invited to bid on each job, and
the lowest responsive and responsible bidder will be selected for the contract.
• All contractors working on pre-1978 units must be Renovate, Repair and Paint Rule (RR&P)
Certified Renovators working for Certified Renovation firms.
• Homeowners who know of quality rehabilitation contractors that are not on the approved
contractors' registry are welcome to invite them to apply.
What Are The Steps In The Process, From Application To Completion?
You now have information about how to apply for the Essential Single-Family Rehabilitation Loan Pool
(ESFRLP) and what type of work can be done through the Program Let's go through the steps for getting
the work done:
1) Completing a pre-application form: Homeowners who wish to apply for assistance must do so by
December 31, 2020.Apply by contacting Erika Brandt, Housing and Community Development
Manager, at 919-245-4331 or online at http://orangecountync.gov/housing. Proof of ownership
and income will be required.Those who have applied for housing assistance from Orange County
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in the past will not automatically be reconsidered and must complete a new pre-application form.
2) Client referral and support services: Many homeowners seeking assistance through the Essential
Single-Family Rehabilitation Loan Pool may also need other services. If the ESFRLP staff meets the
homeowner during the application process,they will provide pamphlets and a list of the agencies
with contact information for the resources and programs available in the County. For households
that meet the requirements of the pre-application step and qualify to receive assistance through
the ESFRLP program, additional verbal discussion will be offered during the screening of applicants
and/or pre-rehab inspection steps of the program. With the homeowner's permission, a case file
will be created and a staff person will follow up with the homeowner concerning the available
services in the referral network.
3) Preliminary inspection: Orange County's Rehabilitation Specialist will visit the homes of eligible
households to determine the need and feasibility of the home for rehabilitation. Homeowners
must inform staff of any known pest infestations prior to the visit.
4) Screening of applicants:Applications will be ranked by Orange County based on the priority
system outlined on page 3 and the feasibility of rehabilitating the house. Households to be offered
assistance will be selected by January 31, 2021. Household income will be verified for program
purposes only(information will be kept confidential). NCHFA will verify ownership of the property
by conducting a title search. From this review,the five (5) most qualified applicants will be chosen
according to the priority system described above; the remaining applicants will be placed on a list
of alternates in the order that they qualified. Orange County will then submit to NCHFA an ESFRLP
Loan Application and Reservation Request for each potential borrower for approval Applicants not
selected for ESFRLP assistance will be notified in writing.
5) Written agreement:A HOME Owner Written Agreement, between the homeowner and Orange
County, will be executed as part of the Loan Application and Reservation Request procedure (that
formally commits funds to a dwelling unit).This agreement will certify that the property is the
principal residence of the owner,that the post-rehab value of the property will not exceed 95%of
the 203(b) limits established by HUD and defines the ESFRLP maximum amount and form of
assistance being provided to the homeowner, the scope of work to be performed, the date of
completion and the rehabilitation criteria and standards to be met.
6) Pre-rehab inspection and unit evaluation: Orange County's Rehabilitation Specialist will visit the
home again for a more thorough inspection. All parts of the home must be made accessible for
inspection, including the attic and crawlspace.The owner should report any known problems such
as electrical short circuits, blinking lights, roof leaks, etc. Each unit will be evaluated for energy-
saving opportunities such as air sealing and duct sealing as well as for environmental concerns,
such as lead based paint hazards, radon and asbestos.
7) Work write-up:The Rehabilitation Specialist will prepare complete and detailed work
specifications (known as the "work write-up"). A final cost estimate will also be prepared by the
Rehabilitation Specialist and held in confidence until bids are received from contractors.
8) Lead and other testing: Orange County will arrange for a certified firm to inspect all the pre-1978
constructed homes for potential lead (required) and asbestos hazards (as deemed necessary by
the Rehabilitation Specialist in all homes built during, before, and after 1978).All homes will be
tested for radon.The owner will receive information covering the results of the tests and any
corrective actions that will be needed as part of the rehabilitation.
9) Bidding:The work write-up and bid documents will be conveyed to all contractors from the
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Approved Contractors Registry. Contractors will be given no less than seven (7) days in which to
inspect the property and prepare bid proposals. Each contractor will need access to all parts of the
house in order to prepare a bid. A bid opening will be conducted at the Orange County Housing
and Community Development Department office, located at 300 W.Tryon Street, Hillsborough, NC
27278, at a specified date and time, with all bidders invited to attend.
10) Contractor selection:Within 72 hours of the bid opening the winning bidders will be selected. All
bidders and the homeowner will be notified in writing of 1)the selection of the winning bid, 2)the
amount of the winning bid, 3)the amount of the County's cost estimate, and 4)the specific
reasons for the selection, if other than the lowest bidder was selected.
11) Loan closing and contract execution: Loan documents (Promissory Note and Deed of Trust) will be
prepared by NCHFA as the lender and executed by the homeowner. By law, homeowner's have the
right to hire legal representation of their choosing at loan closing. If a homeowner does not have
representation at the closing,the borrower must sign a NCHFA"Legal Advice Disclosure".
Rehabilitation contract documents will be executed by the homeowner and contractor with
Orange County signing on as an interested third party prior to the commencement of any
construction. Orange County will facilitate with the loan closing and recordation of these
documents and forward the recorded documents to NCHFA.
12) Pre-construction conference:A pre-construction conference will be held at the selected
applicant's home. At this time,the homeowner, contractor and ESFRLP Orange County program
representatives will discuss the details of the work to be completed Starting and ending dates will
be finalized, along with any special arrangements such as weekend or evening work hours and
disposition of items to be removed from the home. Orange County will issue a "proceed order"
formally instructing the contractor to commence work by the agreed-upon date.
13) Construction:The contractor is responsible for obtaining and posting all permits for the project
before beginning work. Orange County ESFRLP Program staff will closely monitor the contractor
during the construction period and local Code Enforcement Officials will inspect the work.To
protect personal property the homeowner will be responsible for working with the contractor
toward clearing work areas of personal property as needed as much as practicable.The contractor
will be responsible for all clearing and cleaning activities necessary due to construction activities.
14) Change Orders:All changes to the scope of work must be approved by the owner,the contractor,
the Orange County Rehabilitation Specialist, and reduced in writing as a contract amendment
("change order").The owner, contractor and two Orange County personnel must execute any
change order agreements to the construction contract.
15) Progress payments:The contractor is entitled to request up to three (3) partial payments and a
final payment When a payment is requested,the Rehabilitation Specialist will inspect the work
within three (3) days.
16) Closeout:When the Rehabilitation Specialist and the homeowner are satisfied that the contract
has been fulfilled,the homeowner, Project Administrator and Rehabilitation Specialist will sign off
on the work. All material and workmanship will be guaranteed by the contractor for a period of
one (1)year from the date of completion of the work as established by Orange County's approval
date of the final pay requisition. Orange County will notify the homeowner in writing of this date.
17) Post-construction conference: Following construction,the contractor and the Rehabilitation
Specialist will sit down with the homeowner one last time At this conference the contractor will
hand over all owner's manuals and warranties on equipment and materials to the homeowner.
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The contractor and Rehabilitation Specialist will go over operating and maintenance requirements
for the new equipment, materials and appliances and discuss general maintenance of the home
with the Homeowner.The homeowner will have the opportunity to ask any final questions about
the work.
18) Final loan amount determination: If, upon completion of all rehabilitation work,the contract price
has changed due to the effect of change orders and there is a need to modify the loan, NCHFA will
prepare an estoppel for a loan reduction or modification agreement for loan increases as
necessary at the time of closeout of the unit to modify the loan amount when there is a need for a
change order involving a change in the original loan amount).The loan will remain the property of
NCHFA,with original documents remaining there for storage and servicing. Please note that it is
the responsibility of the owner to record an estoppel if they wish this to be reflected in the Deed
of Trust.
19) The warranty period: It is extremely important that any problems with the work that was
performed be reported by the homeowner to the Orange County Rehabilitation Specialist or other
representative, as soon as possible in writing.All bona fide defects in materials and workmanship
reported within one (1)year of completion of construction will be corrected free of charge by the
contractor.
What are the key dates?
If, after reading this document, you feel that you qualify for this program and wish to apply, please keep
the following dates in mind:
• Applications available to the public starting September 30, 2020.
• Applications must be turned in at the Orange County Housing and Community Development Office
by 5:00 PM on December 31, 2020.
• Selection of units will be made on January 31, 2021.
• All rehabilitation work must be under contract by December 31, 2022.
• All rehabilitation work must be completed by June 15, 2023.
How do I request an application?
Contact:
Erika Brandt, Housing and Community Development Manager
Orange County
P.O. Box 8181
Hillsborough, NC 27278
Phone: (919) 245-4331
Email: ebrandt@orangecountync.gov
Or: Pick up an application at the Housing and Community Development Department, located 300 W .Tryon
Street, Hillsborough, NC 27278.
Is there a procedure for dealing with complaints,disputes and appeals?
Although the application process and rehabilitation guidelines are meant to be as fair as possible, Orange
County realizes that there is still a chance that some applicants or participants may dispute decisions, work
completed, or other issues.The following procedures are designed to provide an avenue for resolution of
complaints and appeals.
During the application process:
1) If an applicant feels that his/her application was not fairly reviewed or rated and would like to
appeal the decision made about it, he/she should contact Bonnie Hammersley, County Manager
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(919) 245-2300, within five (5) days of the initial decision and voice their concern.
2) If the applicant remains dissatisfied with the decision,the detailed complaint should be put into
writing. A written appeal must be made within ten (10) business days of the initial decision on an
application.
3) Orange County will respond in writing to any complaints or appeals within ten (10) business days
of receiving written comments.
During the rehabilitation process:
1) If the homeowner feels that construction is not being completed according to the contract, he/she
must inform the contractor and the Rehabilitation Specialist.
2) The Rehabilitation Specialist will inspect the work in question. If he finds that the work is not being
completed according to the contract,the Rehabilitation Specialist will review the contract with the
contractor and ask the contractor to correct the problem.
3) If the Rehabilitation Specialist finds that the work is being completed according to contract, the
complaint will be added to the applicant's file.The Rehabilitation Specialist and the homeowner
will discuss the concern and the reason for the Rehabilitation Specialist's decision.
4) If problems persist, the homeowner must put the concern in writing and a mediation conference
between the homeowner and the contractor may be convened by the Rehabilitation Specialist and
facilitated by the Orange County Housing and Community Development Director.
5) Should the mediation conference fail to resolve the dispute,the Director will render a written final
decision.
Final Appeal:
After following the above procedures, any applicant or homeowner who remains dissatisfied with Orange
County's final decision may appeal to Michael Handley, NCHFA, PO Box 28066, Raleigh, NC 27611-8066,
(919) 877-5627.
Will the personal information provided remain confidential?Yes. All information in applicant files will
remain confidential.Access to the information will be provided only to Orange County employees who are
directly involved in the program, the North Carolina Housing Finance Agency,the US Department of
Housing and Urban Development (HUD) and auditors.
What about conflicts of interest? No employee or board member of Orange County, or entity contracting
with Orange County, who exercises any functions or responsibilities with respect to the ESFRLPI7 project
shall have any interest, direct or indirect, in any contract or subcontract for work to be performed with
project funding, either for themselves or those with whom they have family or business ties, during their
tenure or for one year thereafter. Relatives of Orange County employees or of Orange County board
members and others closely identified with, may be approved for rehabilitation assistance only upon
public disclosure before the Orange County Board of Commissioners and written permission from NCHFA.
What about favoritism?All activities under ESFRLPI7, including rating and ranking applications, inviting
bids, selecting contractors and resolving complaints, will be conducted in a fair, open and non-
discriminatory manner, entirely without regard to race, color, religion, national origin, sex,familial status
and disability.
Outreach Efforts of the ESFRLP Program
The County makes citizens aware of the ESFRLP program and other housing rehabilitation opportunities
through various service providers and specific outreach efforts. At minimum,the County will advertise the
Essential Single-Family Rehabilitation Loan Pool Program via the following media/venues: the local English-
speaking and Spanish-speaking newspapers serving the County(The News of Orange and La Noticia),
senior centers and community centers throughout the County, Orange County Home Preservation
Coalition, Orange County Affordable Housing Coalition, Carrboro Town Hall, Chapel Hill Town Hall, Orange
12
County DSS Office, and on the County's website.
Who can I contact about the ESFRLP program?Any questions regarding any part of this application or
program should be addressed to:
Erika Brandt, Housing and Community Development Manager
P.O. Box 8181
Hillsborough, NC 27278
Phone: (919) 245-2495
Email: ebrandt@orangecountync.gov
David Saconn, Rehab Specialist
Orange County
P.O. Box 8181
Hillsborough, NC 27278
Phone: (919) 245-2494
Email: dsaconn@orangecountync.gov
This Assistance Policy is adopted this day of 2020.
Penny Rich, Chair
Orange County Board of Commissioners
Attest
13
Attachment 2
Orange County Procurement and Disbursement Policy
Essential Single-Family Rehabilitation Loan Pool 2020
Procurement Policy
1. To the maximum extent practical, Orange County(the County) promotes a fair, open and
competitive procurement process as required under the North Carolina Housing Finance Agency's
(NCHFA) Essential Single-Family Rehabilitation Loan Pool (ESFRLP). Bids are invited from
Contractors who are part of the County's approved contractor registry. Any current contractor
listed with and approved by the County and in good standing(i.e., no unresolved past
performance issues and not listed on the federal or state debarred list) will receive automatic
approval status on the Approved Contractor Registry.
2. To be listed in the Approved Contractor Registry, a contractor must complete an application, have
their recent work inspected, reviewed and approved by the County's Rehabilitation Specialist and
submit proof of insurance.
3. At least three eligible contractors on the County's Approved Contractor Registry shall be invited to
bid on each job and the lowest responsive and responsible bidder shall be selected for the
contract. "Responsive and responsible" means (a)the contractor is deemed able to complete the
work in a timely fashion, (b)the bid is within 15%, in either direction, of the County's cost
estimate, (c)the contractor has not been suspended or debarred and (d)there is no conflict of
interest (real or apparent).
All contractors working on pre-1978 units must be Renovation, Repair and Painting Rule (RR&P)
Certified Renovators working for Certified Renovation firms; only those contractors with this
certificate on file will be invited to bid on pre-1978 homes.
4. Although bid packages may be bundled for multiple job sites, the bids for multiple job sites shall be
considered separate and apart when awarded and shall be awarded to the lowest responsive and
responsible bidder(s)for each job site.
5. Bid packages shall consist of an invitation to bid,work write up(s) and bid sheet(s)for each job,
including instructions for distribution and receipt of bids. Contractors will be given no less than
seven days in which to inspect the property and prepare bid proposals. Each contractor will need
access to all parts of the house in order to prepare a bid.A bid opening will be conducted at the
Housing and Community Development Department located at 300 W Tryon Street, Hillsborough,
NC 27278 at a specified date and time, with all bidders invited to attend.
6. Bids must include a cost-per-item breakdown with line item totals equaling the submitted bid
price. Discrepancies must be reconciled prior to a contract being awarded.
7. The County reserves the right to reject any or all bids at any time during the procurement process.
8. In the event of a true emergency situation,the County reserves the right to waive normal
procurement procedures in favor of more expedient methods, which may include seeking
telephone quotes, electronic bids and the like. Should such methods ever become necessary the
transaction will be fully documented. In the event phone bids are used, the County will call the
14
first three responsive contractors on the approved contractor list who have indicated a desire to
be on the telephone call list.The County will track who has been called and responsive, and will
rotate through the full list before beginning the rotation again.
9. All sealed bids will be opened publicly at a time and place to be announced in the bid invitation. All
bidders are welcome to attend. Within 72 hours of the bid opening, after review of bid
breakdowns and construction schedules,the winning bidders will be selected. All bidders and the
homeowner will be notified in writing of 1)the selection of the winning bid, 2)the amount of the
winning bid, 3)the amount of the County's cost estimate, and 4)the specific reasons for the
selection, if other than the lowest bidder was selected.
10. The contractor is responsible for obtaining a building permit for the project before beginning work,
if supported by the local jurisdiction.The permit must be posted at the house during the entire
period of construction. If applicable, the contractor will obtain a permit for lead hazard related
activities. Orange County ESFRLP staff will closely monitor the contractor during the construction
period to make sure that the work is being completed according to the work write-up (which is
made a part of the rehabilitation contract by reference) and in a timely fashion. Local Code
Enforcement Officials will inspect the work for compliance with the NC State Building Code and the
local minimum housing code, when applicable.To protect personal property the homeowner will
be responsible for working with the contractor toward clearing work areas of personal property as
needed as much as practicable.The contractor will be responsible for all clearing and cleaning
activities necessary due to construction activities.
11. Any change to the original scope of work must be reduced to writing in the form of a change order
to be agreed upon and signed by all parties to the original contract including at minimum, the
homeowner,the contractor and two representatives of the County. The change order must also
detail any changes to the original contract price and completion date.
12. No work may begin prior to a contract being awarded and executed and a written order to
proceed provided to the contractor. In addition, a pre-construction conference and "walk through"
shall be held at the work site prior to commencement of repair work. At this time,the
homeowner, contractor and Orange County ESFRLP program representatives will discuss the
details of the work to be completed. Starting and ending dates will be finalized, along with any
special arrangements such as weekend or evening work hours and disposition of items to be
removed from the home. Within 24 hours of the pre-construction conference, Orange County will
issue a "proceed order" formally instructing the contractor to commence work by the agreed-upon
date.
13. Orange County is an equal opportunity employer, implements non-discriminatory practices in its
procurement/disbursement and will make special outreach efforts to include M/WBE
(Minority/Women Business Enterprise) businesses within its contractor and subcontractor pool.
Contractors will be chosen by the above criteria without regard to race, color, religion, national
origin, sex,familial status and/or disability.
Disbursement Policy
1. All repair work must be inspected by(a)the County's Rehabilitation Specialist, (b)the local
building or minimum housing code inspector when applicable and (c)the homeowner prior to any
15
payments to contractors. If all work is deemed satisfactory and all other factors and written
agreements are in order, payment shall be issued upon presentation of an original invoice from
the contractor. Contractor should allow 21 business days for processing of the invoice for
payment.
2. The contractor is entitled to request two (2) partial payments and a final payment.The first partial
payment may be requested when the work is 50%complete.The second partial payment may be
requested when the work is 85%complete. When a payment is requested,the Rehabilitation
Specialist will inspect the work within three (3) days, determine percentage of job completion and
calculate a payment based on 90%of the total work completed.
3. Following construction,the contractor and the Rehabilitation Specialist will meet with the
Homeowner in a post-construction conference.At this conference the contractor will hand over all
owner's manuals and warranties on equipment and materials to the homeowner and be available
to answer homeowner questions.
4. Proiect Closeout: When the contractor declares the work complete,the Rehabilitation Specialist
will thoroughly inspect the work. If any of the work is deemed unsatisfactory, it must be corrected
prior to authorization of final payment. If the contractor fails to correct the work to the
satisfaction of the County's Rehabilitation Specialist, payment may be withheld until the work is
deemed satisfactory. (Contractors may follow the County's Essential Single-Family Rehabilitation
Loan Pool Assistance Policy if a dispute occurs; however, contractors shall abide by the final
decision as stated in the policy).The homeowner, Project Administrator and Rehabilitation
Specialist will sign off on the work. After receipt of the contractor's final invoice, inspections,
certificate of completion and lien releases, the final payment will be ordered.All material and
workmanship will be guaranteed by the contractor for a period of one-year, using the date the
Rehabilitation Specialist declares all work complete and approves the final invoice for payment,
the homeowner will be provided the one (1)year warranty date in writing.
5. The County assures,through this policy,that adequate funds shall be available to pay the
contractor for satisfactory work.
6. All contractors, sub-contractors and suppliers must sign a lien waiver prior to disbursement of
funds.
The Procurement and Disbursement Policies are adopted this the day of 20_
Penny Rich, Chair
Orange County Board of Commissioners
Attest
16
Contractors Statement
I have read and understand the attached Orange County Procurement and Disbursement Policy.
BY:
COMPANY NAME:
WITNESS:
17
NORTH CAROLINA HOUSING FINANCE AGENCY
ESSENTIAL SINGLE-FAMILY
REHABILITATION LOAN POOL
(ESFRLP17)
FUNDING and WRITTEN AGREEMENT for SUBRECIPIENTS
Member: Orange County
Funding Agreement Number: ESFRLP1717
Service Area: Orange County
18
[This page has been left blank intentionally]
19
NORTH CAROLINA HOUSING FINANCE AGENCY
2016 ESSENTIAL SINGLE-FAMILY REHABILITATION LOAN POOL
(ESFRLPI7)
FUNDING AGREEMENT
This is a subaward of a federal grant.
-This Agreement is entered into this the 91'offebruary, 2017 by and between the North Carolina Housing
Finance Agency("Agency")and Orange County("Subrecipient"or"Member") for the performance of the
services listed below the Agency and the Subrecipient are sometimes referred to as the"Parties".
This Agreement is funded by a federal grant from the HOME Investment Partnerships Program from the
U S. Department of Housing and Urban Development to the North Carolina Housing Finance Agency
("Federal Award"). Funds awarded under this Agreement are federal funds and must be used for the
purposes for which they are intended For the purposes of this Agreement the Agency is considered a"Pass
Through Entity"as defined in 2 CFR Part 200. This Agreement is subject to the requirements in 2 CFR Part
200 and Subrecipient is required to comply with those sections specifically related to subawards to
subrecipientstherein.
Part I. Federal Award Identification:
Federal Award Identification.: Subrecipient Name(which must Subrecipient's DUNS number:
HOME Investment match registered name in
Partnerships Agreement DUNS): Orange County 44041796
Federal Award Identification Number Federal Award Date(Date signed Subaward Period of Performance:
(FAIN): by Federal awarding Agency Start Date:February 9,2017
M16-SG370100 Official):August 12,2016 End Date:June 30,2020
Amount of Federal Funds Obligated Total Amount of Federal Funds Total Amount of Federal Award to
by this Action: Obligated to the Subrecipient: Agency:
$175,000 $175,000 $175,000
Federal Award Project Description(as Name of Federal Awarding Pass Through Entity:
required by FFAIA): Agency: U.S. Department of North Carolina Housing Finance
HOME Investment CPD Housing and Urban Agency
Development (referred to as"Agency"or"PIE")
Contact Information for Awarding CFDA Number and Name: Is Award R&D:
Official: 14.239 No
Michael Handley Manager of Housing Rehabilitation HOME Investment
NCHF'A
3508 Bush Street Partnerships Program
Raleigh NC 27609
Phone:(919)877-5627
Subrecipient Indirect Cost Rate(or Audit Verified: Subrecipient's Cumulative Federal
10%de minimis): Not Applicable Yes Awards>$750,000:
Page 1 of 16
20
Part II. Agreement Documents.
This Agreement includes the following, all of'which are identified by name as follows:
1 Ihis Agreement;
2 Certifications and Assurances(Attachment 1);
3. ESFRLP Program Guidelines (Attachment 2); and,
4. Iran Divestment Act Certification(Attachment 3)
Ihese attachments are incorporated herein by reference,constitute the entire agreement between the Parties,
and supersede all prior oral or written statements or agreements and are hereinafter referred to as the
"Agreement Documents".
Part III. Definitions
1. Agency. The North Carolina State Housing Finance Agency, an instrumentality and public agency of
the State of'North Carolina.
2 Agreement Refers to this Subaward Agreement and all attachments.
3 Application The application submitted by the Subrecipient for Program funds.
4 De-obligate or De-obligation of Funds Refers to the Agency's tight to rescind its obligation to
disburse funds awarded to Subrecipient based on a variety of factors,including but not limited to under
performance, non-compliance, end of subaward period, breach of this Agreement, violation of state,
federal, and/or local law, fraudulent or willful misconduct, ox change in eligibility status
5. Federal Award. Federal Award is the award identified in Section 1 of this Agreement.
6. Funds. The funds awarded to the Member under this Agreement
7. HOME the HOME Investment Partnerships Program found at 24 C F.R Part 92
8. HUD the United States Department of Housing and Urban Development.
9. Member The organization identified in Section I of this Agreement to which the Agency is making a
subaward, and which is accountable to the Agency for the use of the funds provided
10. Program.The Agency's Essential Single-Family Rehabilitation Loan Pool Program..
11. Recapture Recapture means when the Agency takes back money awarded under this Agreement and
already disbursed to Subrecipient based on such factors as,but not limited to,underperformance,non-
compliance, end of'subaward period, and/or fraud
12 ESFRLP. The Agency's Essential Single-Family Rehabilitation Loan Pool Program.
Page 2 of 16
21
13. ESFRLP Funds ox-ESFRLP Pool. The HOME funds awarded to Subrecipient under this Agreement.
14 ESFRLP Program Guidelines. the Agency's program guidelines for administering the Program
which Member must adhere to in order to received funds under this Agreement
15 Services. the eligible activities described in this Agreement
16, Subaward. Subaward means the funds awarded to the Subrecipient under this Agreement The
Subaward consists solely of federal funds..
17. Subrecipient Subrecipient the organization identified in Section 1 of this Agreement to which the
Agency is making a subaward, and which is accountable to the Agency for the use of the funds
provided
18. Super circular., Supercircular means 24 CFR Part 200, Uniform Administrative Requirements, Cost
Principles,and Audit Requirements for Federal Awards.Also referred to as Uniform Guidance..
Part IV. Purpose
the Agency has received a grant of federal HOME funds from HUD which the Agency uses, in part, to
fund its Single-Family Rehabilitation Loan Pool Program The ESFRLP provides an interest free,deferred-
forgiven loan to Program-eligible homeowners to pay for certain rehabilitation costs of a homeowner's
house The Agency provides subawards to local organizations to utilize them in assisting in the
administration of the ESFRLP. The Agency has advertised the availability of funding under the ESFRLP
and the application of the Member was received, evaluated,and approved by the Agency The Agency and
the Member now wish to enter into this Agreement to provide a subaward to Member under the ESFRLP.
Part V. SubAwar'd
The Agency hereby awards a Subaward, as described above,to Subrecipient subject to the provisions of
this Agreement and any attachments hereto. The Agency shall pay the Subrecipient in the manner and in
the amounts specified in the Agreement Documents the total amount paid by the Agency to the
Subrecipient under this Agreement will not exceed$175,000 and consists entirely of federal funds
Although the Agency has approved a set-aside fbr a specific amount to the Member;the Member also has
the opportunity to access additional funds from the ESFRLP pool(depending upon fund availability) once
they have met the threshold requirements outlined in ESFRLP17 Program Guidelines 3 2 2.
Part VI. Subrecipient Duties (Scope of Work)
the Subrecipient will provide the services as described in this Agreement in accordance with the terms and
conditions of the Agreement Documents The Subrecipient will be responsible for all activities and
responsibilities as defined by the ESFRLP17 Program Guidelines.
Page 3 of 16
22
Part VII. Time of Performance
(a) The Member shall begin performance of this Agreement on the I"day of'.Tuly,2017 and shall complete
perfotmance no later than June 30,2020
(b) The Agency has approved a set-aside of up to $175,000 of ESFRLP 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) 32 2 & 3 2.3,until December 31, 2018 Any funds from this set-aside not reserved
by that date shall be De-obligated and remain in the ESFRLP pool f'or reallocation to those Members
seeking funding for additional units
(c) Funds for additional units may be reserved from the ESFRLP pool, depending on availability, on a
unit-by-unit,first come,first served basis in accordance with PG 3.2 up until December 31,2019 Any
funds,not committed under contract(pursuant to Section 3.12 of the Program Guidelines)to a unit as
of December 31, 2019,must be withdrawn from deposit and returned to the Agency; or, de-obligated
from the Member's IDIS master account All units must be completed and closed out by Tune 30,
2020.
(d) De-obligation of Funds Upon expiration of'the agreement on,Tune 30,2020,the Member must transfer
to the Agency any HOME funds not under contract for a specific unit and any accounts receivable
attributable to the use of HOME funds,
Part VIII. Program Funding; Management of Funds
Section 1: Suhawar-d
The Agency has made a Subaward to the Member in the amount identified in Part V of this Agreement
Section 2: Use of Funds
(a) ESFRLP funds shall be used to provide assistance to low-income homeowners for: the repair and
rehabilitation of their principle residence; 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. ESFRLP funds shall pay for eligible hard and soft costs associated with housing
rehabilitation of single-family owner-occupied dwelling units; making the units safe, decent and
sanitary. ESFRLP assistance shall be in the form of a loan to the homeowner,which covers the eligible
hard costs associated with the rehabilitation of the unit. ESFRLP assistance used to pay eligible soft
costs associated with the rehabilitation of the unit shall be in the form of a grant to the homeowner In
order to ensure each Member is conveying certain HOME Program requirements to the eligible
homeowners, the Member must use the Agency-provided loan documents listed in the ESFRLPI 7
Program Guidelines. Failure to do so shall constitute a material breach of this Agreement
(b) the Member must identify eligible units in accordance with the ESFRLP Program Guidelines the
budget for each unit assisted can be found on the Settlement Data Sheet which is referenced at PG
2 3.2 and is a part of the unit workbook.
(c) The Member must repay the Agency for any costs deemed ineligible by the Agency in the Agency's
sole 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.
Page 4 of 16
23
Section 3: Disbursement of Funding
(a) The Member cannot request disbursement of ESFRLP funds until funds ar-e needed for actual
payment of eligible costs as defined in the ESFRLP 17 Program Guidelines (PG 2 2„4). the amount
of the request must be limited to the actual amount needed Any interest earned on ESFRLP funds
held by the Member must be spent prior to using any other ESFRLP funds.
(b) ESFRLP funds will be disbursed to the Member through electronic payments from the Agency and
in accordance with PG 32.
(c) The Member is eligible to request Program funds fiom the Agency only after the Agency has received
this executed Agreement and a completed Signatory Form and Certification card("Signatory card")
(d) the Member must complete all work under this Agreement and disburse all ESFRLP funds in
accordance with the Program Guidelines, specifically Sections 3 3 and 3 4
Section 4: 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 ESFRLP 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.
Section 5: 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 ESFRLP funds,including interest earned, shall be accounted for separately from all
other monies
(b) The Members financial management system shall provide for:
(1) Accur ate,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 agrees that its records, as they relate to this agreement, shall be accessible to HUD and
the Agency and their respective agents or representatives, including the North Carolina State
Auditor's Office in accordance with N C.G S §147.64.7(4).
Page 5 of 16
24
Section 6: Procurement Procedures
The Member will have written procurement procedures that reflect the procurement standards found at 2
C F.R §200.318- §200.326 The Member will use written contracts with all firms providing services for
rehabilitation work or professional services under the Program
Section 7: Recapture of Funds.
The Agency reserves the right to recapture the Subaward from the Subrecipient Events of recapture
include, but are not limited to, Subrecipient's failure to comply with the terms and conditions of this
Agreement and the Agreement Documents or if the Agency deems, in its sole discretion, that Subawaid
funds were misused or misapplied by the Subrecipient
PART IX. Program Management
Section 1: Program Guidelines
The terms of the Agreement are subject, in all respects, to the ESFRLP17 Program Guidelines, and all
defined terms used in this Agreement shall have the same meanings as used in the ESFRLP17 Program
Guidelines The Agency shall have the right from time to time, in its sole discretion, to amend all or any
portion of the Program Guidelines for the purpose of providing for any and all modifications, updates,
changes, amendments or supplements to applicable laws, regulations or Program changes The Agency
shall give the Member notice of such amendment not less than 30 days before the effective date of such
amendment unless the Agency is obligated by law or regulation to implement such amendment in a shorter
time period.
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 ofthe ESFRLPI 7 Program Guidelines,as supplemented or amended shall be an event of'default
by the Member under this Agreement
Section 2: Pr ogram Documents
Members must use loans to finance eligible repairs for participants Each ESFRLP 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 bust) 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 5 &4,6
Additionally, Members must use 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 3: Member Responsibility
(a) Members are responsible for Project Financial Administration as outlined in Section 3 of the
ESFRLP17 Program Guidelines for compliance with the Loan Processing Requirements in Section 4
of the ESFRLPI7 Program Guidelines. the Agency expects the Member to be active in the
management and monitoring of the activity funded with the ESFRLP funds including ensuring
Page 6 of 16
25
Program eligibility of homeowners, facilitating loan closings, and 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 the Member's or ESFRLP17 Application
fbr Funding 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 ESFRLPI 7 Application for Funding.
(b) the Member shall execute a Written Agreement (the "Homeowner 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 24 CPR 92.504(5)(ii). The Agency will enforce the terms
of the Written Agreement through a deed of trust recorded against the property using any legal
remedy available,including possible foreclosure of the project,and/or any other remedy specified for
breach in the loan documents
(c) If the Member is monitored by the Agency or an authorized representative and if a lack of ptoper
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 4: Right to Inspect
The Agency,HUD and the Comptroller General of the United States,or then authorized representatives or
agent, shall have the right to inspect the housing rehabilitation work performed with ESFRLPI7 funds
provided under this Agreement for the purpose of determining if work is being carried out in accordance
with the EST RLP17 Program Guidelines and the HOME regulations All dwelling units rehabilitated under
EST RLP17 must meet the ESFRLP17 Rehabilitation Standards in accordance with PG 2.5.
Part X. Reporting and Audit Requirements
Section 1: State Requirements„
(a) If the Member is a non-profit organization or otherwise meets the definition of a"Subgrantee" in
N C.G S. §143 C-6-23(a)(4) then it is subject to the State reporting requirements mandated by
N C G.S § 143C-6-23, as may be amended fiom time to time. Iheref6m,the Member is required
to file annual electronic reports with the NC Office of State Budget & Management A
"Subgrantee" that receives, uses, or expends State funds and in the amount greater than five
hundred thousand dollars($500,000)within its fiscal year(from any source)must have an audit in
accordance with 09 NCAC 03M .0205. The amounts and requirements listed in the statute may
change fiom time to time and it is the Mcmber's responsibility to periodically check the statutes
for any amendments or changes thereto
(b) If the Member is a unit of local government then it must comply with N.C.G S § 159-34, as may
be amended from time to time, as referenced in the ESFRLP17 Program Guidelines, Section 3 8
Financial Audit Requirements
Page 7 of 16
26
Section 2: Audit
A The Subaward is funded with federal funds and as such any requirements applicable to recipients
of federal funds will be required of Subrecipient. Note: 2 CFR Part 200 110 states, in part, that 2
CFR Part 200 supersedes the following OMB Guidance documents and regulations under Iitle 2
of the Code of Federal Regulations: A-87 (Cost Principles for State, Local and Indian Iribal
Governments), A-102 (Grants and Cooperative Agreements with State and Local Governments),
A-110 (Uniform Administrative Requirements for Grants and Agreements with Institutions of
Higher Education, Hospitals and Other Non-Profits), A-122 (Cost Principals for Non-Profit
Organizations), and A-133 (Audits of States, Local Governments and Non-Profit Organizations)..
The Subrecipient is required to review and comply with 2 CFR Part 200 requirements related to
units of local government or non-profit organizations, as may be applicable, that were previously
found in the OMB Circulars.
i. Subrecipient must permit the Agency's auditors to have access to the Subrecipient's records
and financial statements as necessary,in the discretion of the Agency,to meet the requirements
of 2 CFR §§200.300 Statutory and national policy requirements through 200.309 Period of
performance, and 2 CFR 200 Subpart F —Audit Requirements.
ii The Subrecipient will comply with 2 CFR Subpart F—Audit Requirements,as maybe amended
from time to time,which states, in part:
a A Subrecipient that expends $750,000 or more in federal awards during its fiscal year
from any source, including federal funds passed through the State or other grantors,
must obtain a single audit or program-specific audit conducted for that year in
accordance with 2 CFR 200 Subpart F-Audit Requirements (§200,501 (a))
b. A Suhrecipient that expends $750,000 or more during its fiscal year in Federal awards
must have a single audit conducted in accordance with 2 CFR 200.514 Scope of audit
expect when it elects to have a program-specific audit conducted in accordance with
paragraph(c) of this section (2 CFR§200.501 (b))
c An auditee that expends Federal awards under only one Federal program (excluding
R&D) and the Federal program's statutes, regulations, or the terms and conditions of
the Federal award do not require a financial statement audit of the auditee,the auditee
may elect to have a program-specific audit conducted in accordance with 2 CFR
§200 507 Program-specific audits. (2 CFR §200 501(c))
d A Subrecipient that expends less than$750,000 during its fiscal year in F ederal awards
is exempt from Federal Audit requirements for that year, except as noted in 2 CFR
§200.503 Relation to other audit requirements,but records must be available for review
or audit by appropriate officials of the Federal Agency, Pass Through Entity, and
Government Accountability Office. (2 CFR 200.501(d)).
Section 3: 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 form to the Agency not later
than Tune 30,2020..
(c) The final certification shall contain a summary of the use of funds provided under this Agreement..
Page 8 of 16
27
Section 9: Indemnification
The Member agrees to hold harmless and indemnify the Agency from any and all claims, loss, cost or
expense, including rcasonable attorney's fees, for any injury or damage, whatsoever, which may arise in
connection with work perfbrmed under this Agreement or pursuant to the Member's activity, errors or
omissions in connection with this Agreement
Section 10: Inconsistencies;No Waiver
In case any provision of'this Agreement is held to be invalid,then such provision shall be amended by the
parties only to the extent necessary to be enforceable consistent with the patties' intent, and the remainder
of the provisions shall remain in full force and effect No waiver by either party of any breach or failure of
compliance with respect to any provision of this Agreement shall be deemed a continuing waiver,not shall
any delay or omission by either party to exercise any right hereunder impair in any manner the exercise of
any such right.
Section 11: Governing Law
Ihis Agreement shall be governed by, construed and enforced in accordance with the substantive laws of
the State of North Carolina. Each patty expressly consents to the jurisdiction of the State of North Carolina
Section 12: Entire Agreement
This Agreement and all Attachments and/or Exhibits, specifically including the ESFRLP17 Program
Guidelines, constitutes the entire Agreement between the Agency and the Member..
III.Authorization of Signature
By signing this Agreement,the Member certifies that all representations made in its ESFRLP application
are true,and in the event of any misrepresentations,the Agency has the option to rescind any obligations
to Member regarding the Funds or recapture any Funds awarded or intended to be awarded to the
Subr'ecipient. The person signing this Agreement hereby certifies that he/she is authorized to execute this
agreement on behalf of'the Subrecipient.
Orange County
By: Date: V 317
'Attest Its: tounty Manager
North Carolina Housing F'nance Agency
By: _ Date:
41,
Attest 61 Its: Manager o ousing Rehabilitation
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the provision of services hereunder and shall not be disclosed to any third party, The Member agrees to
hold harmless and indemnify the Agency for any cost, legal actions, or disputes of any nature whatsoever
incurred if the Member violates this provision or any Applicable Law.. The Member shall keep all
Confidential Information secure, including without limitation, implementing physical security measures
and operating procedures
Section 4: Mandatory Disclosures
The Member must disclose to the Agency,in a timely manner,in writing,all violations of Federal criminal
law involving fiaud,bribery,or gratuity violations potentially affecting the Subaward of the Federal Award
Failure to make required disclosures can result in any of the remedies for noncompliance listed in 2 C F.R.
§200.339 including suspension or debarment(See also 2 C.F.R.part 180).
Section 5: Laws and Regulations
The Member agrees to remain fully informed of all laws and regulations that apply to the Subrecipient,and
will give Agency prompt notice of any action or event that may be cause for suspension or termination of
this Agreement. Failure to provide such notice will constitute a breach of this Agreement, Any and all
information regarding this Subaward should be forwarded to your auditors when organizing your annual
audit.
Section 6: Notices
All legal notices, reports, requests, demands and other communications under this Agreement shall be in
writing and referred to each party's point of contact as listed below. All such notices under this Agreement
sent to the other party shall be considered received: (a) when personally delivered; (b) when delivered by
commercial overnight courier with verification receipt; or (c)three(3)days after having been sent,postage
prepaid,via certified mail,return receipt requested
Io the Agency: North Carolina Housing Finance Agency
Attn: Michael Handley,Manager of Housing Rehabilitation
PO Box 28066
Raleigh,NC 27611-8066
I the Subrecipient: Orange County
Attn: Bonnie Hammersley,County Manager
PO Box 8181
Hillsborough,NC 27278
Section 7: Agreement 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 8: Assignment
This Agreement cannot be assigned
c
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29
Section 2: Records Retention Policies
I. the Subrecipient shall establish and comply with a records retention policy. This policy shall
be made available to the Agency at its request
2 Financial records, supporting documentation, statistical records, and all records pertinent to
the subaward shall be retained for a period of five(5)years from the date of the project close
out letter(PG 3 6 1) the only exceptions are as follows:
a. If any litigation, claim or audit is started before expiration of the five (5)year period,the
records shall be retained until the litigation,claims or audit findings involving the records
have been resolved and final action taken.
b Records for real property and equipment acquired with grant Funds shall be retained for
three(3)years after final disposition
c When the Subrecipient is notified in writing by the Federal awarding agency, cognizant
agency for audit, oversight agency for audit, cognizant agency for indirect costs, or the
Agency to extend the retention period.
d. If Subrecipient must report program income after the period of'performance then it must
comply with 2 C F.R. §200.333(e).
e Subrecipient will comply with 2 C.F R §200.333 (f)as it relates to retention ofrecords
for indirect cost rate proposals and cost allocations plans.Under this section the
following types of documents and their supporting records shall be retained: indirect cost
rate computations or proposals, cost allocations plans, and any similarly accounting
computations of the rate at which a particular group of costs is chargeable: 1)if submitted
for negotiation see 2 CFR §200.333(f)(1); if not submitted for negotiation see 2 CFR
§200 333(f)(2)
3 Notwithstanding the foregoing retention policy, or any other provision of this Agreement, the
Agency,the Federal Awarding Agency,and their authorized representatives,agents' and third-
party contractors'will have access and a r ight to inspect Subrecipient's site,documents,records
and personnel access for evaluation purposes for as long as records ate retained
Section 3: Confidentiality
The Member must maintain the confidentiality and security of records in compliance with the North
Carolina Identity Theft Protection Act, the Gramm-Leach Bliley Act and other federal and state privacy
laws ("Applicable Laws") the Applicable Laws pertain to the security and privacy of personal and
financial information along with identifying information such as social security numbers The Member is
responsible for compliance with the Applicable Laws In the course of providing services hereunder, the
Member may have access to an individual's confidential information. Confidential Information includes,
but is not limited to, names, personal addresses, credit reports, social security numbers and other personal
identifying information, Confidential Information shall be used by the Member only in conjunction with
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30
6 Subrecipient's acts or omissions, in the sole determination of the Agency, may cause
significant reputational harm to the Agency or the Program
7 Any Subrecipient misrepresentation in its application or supporting material which, if
known by the Agency,would have resulted in the Subaward not being made.
B Discovery of Events
The Agency may become aware of Events ofDefault in any number of'ways,including but not
limited to:
1. Third party compliance reviews;
2 Random file reviews;
3. Reports of' noncompliance by third parties such as media, government agencies,
Subrecipient's clients, and/or whistle blowers; or
4. Reviews of audited financial statements and other Uniform Guidance audits.
C. Notice of Events of Default If the Agency becomes aware of an Event or Events of Default, the
Agency will give Subrecipient written notice of the occurrence and a reasonable opportunity to
respond to notification or take corrective action as appropriate, if, in the discretion of the Agency
the default is capable of being cured The Agency reserves the right to send notification to
Subrecipient's Board of Directors,the State of'North Carolina and HUD
D Failure to Remedy an Event of Default.If Subrecipient is unable to cure the Event of Default to the
satisfaction of the Agency,then the Agency may
1 Recover misspent or unspent Funds;
2. De-obligate awarded but undisbursed Funds;
3 Terminate the Agreement for cause Upon termination of the Agreement,all unspent Funds
(as determined by the Agency) shall revert immediately to the Agency, in cither the farm
of recapture or de-obligation;
4. Use information learned in the process of consideration of future funding actions;
5 Recapture Funds; or
6. Take other legally available remedies
Part XIV. General Terms and Conditions
Section 1: 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.
Page 13 of 16
31
A. The Subrecipient hereby agrees to remain fully informed of all laws and regulations that apply to
the Subr-ecipient, and will give the Agency prompt notice of any action or event that may be cause
for suspension or termination of this Agreement and recapture Funds and/or rescind its obligation
to awarded Funds to Subrecipient in the event of Subrecipient's non-compliance with the terms and
conditions of the grant, as outlined in the Agreement and the Agreement Documents
B. The Agency may terminate,in its sole discretion,this Agreement and all of its obligations hereunder
immediately upon written notice to Subrecipient, and recapture Program Funds from Subrecipient
and/or rescind its obligation to disburse Funds to Subrecipient in the event Subrecipient is not in
compliance with the terms and conditions of this Agreement.
C Either the Member or the Agency may terminate this Agreement at any time for any reason by
providing 30 days prior written notice to the other party. In the event of said termination by the
Member, the Agency will require the return of any disbursed, but unused funds and may require
completion of any current units being rehabilitated at the time of the notice..
D. Upon termination of this Agreement all of the Subrecipients work product, including files
pertaining to this Agreement, shall become the property of the Agency if requested
E. 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
F. In the event of a termination of this Agreement, Subrecipient must continue to comply with record
retention requirements and provisions regarding confidentiality and indemnification.
Part XIIL, Default,Remedy, Suspension and Termination of Subawax-d
A. Each of the following may be deemed an Event of'Default under this Agreement:
I Any material failure by Subrecipient to comply with the terms and conditions of this
Agreement whether stated in this Agreement, a federal statute or regulation,North
Carolina statute or regulation,the Agreement Documents or any warranty or assurance by
Subrecipient
2 Subrecipient fails to expend Funds in accordance with Program requirements
3 Subrecipient fails to return Funds, subject to recapture,to the Agency within the requested
time flame.
4 Subr ecipient becomes the subi ect of a feder al, state, or local investigation related to the use
of federal or state funds.
5. Subrecipient fails to continue as a going concern; becomes insolvent, defunct, or
commences bankruptcy proceedings; or should any director, officer, or senior manager of
Subrecipient engage in fraud, willful misconduct, and gross negligence or misappropriate
any Funds.
Page 12 of 16
32
(p) There will be no religious activities conducted in connection with the performance of this Agreement
or the use of'ESFRLPI7 funds.
(q) The Member will 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
ESFRLP17 assistance are processed, and that employees are treated during employment, without
regard to race,sex,age, creed, color,physical handicap or national origin..
(r) 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..
(s) Before ESFRLP17 funds may be disbursed, any Member that is a non-profit or 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.
(t) Before ESFRLP17 funds are disbursed, any entity of local government will adopt, by resolution of
its board of'directors,or other governing body,a notarized copy of the Member's Conflict of'Interest
Policy the policy must address situations that may arise involving any Member's employees,
management staff,board of directors, or other government body,where any of these individuals may
directly or, indirectly benefit, except in their official capacity, from the disbursement of Subaward
funds, and shall include actions to be taken to avoid conflicts of interest or the appearance of
impropriety..
(u) No person providing consulting services in an employer-employee type relationship shall receive
more than reasonable compensation for personal services paid with ESFRLPI 7 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
(v) ESFRLP17 funds may not be used to pay for administrative expenses (PG 2.2.4.3). The Member is
prohibited from charging servicing, origination, processing, inspection, or other fees for
administering the ESFRLP17,HOME-funded program, except as permitted by §92.214(b)(1)
Part XH. Termination
Should Member breach or fail to comply with any or part of the provisions or terms of this Agreement,
continue as a going concern, become insolvent, defunct, or commence bankruptcy proceedings, or should
any employee, agent, director officer or senior manager of Subrecipient engage in fraud, misconduct or
negligence or misappropriate any Funds, the Agency may terminate this Agreement, and all of its
obligations hereunder, immediately upon written notice, and the remaining Program Funds shall revert
immediately to the Agency.. Ihis applies to all terms and conditions of the Agreement at the time the
Agreement is signed and at any subsequent point if the status of the Subrecipient changes, including but
not limited to, the provisions that Subrecipients receiving these Funds shall not have been indicted or
employ those that have been indicted for a violation under Federal Law relating to an election for Federal
of
Page 11 of 16
33
it will comply with OMB Circular A-122, as amended of superseded by 2 C,F R 200, which
established principles for determining costs of grunts,contracts and other agreements with non-profit
organizations as well as the following sections regarding standards for financial management and
procurement standards:24 C.F R. §§84: 84„2, 84.5, 84 13 - 84 16, 84 21, 84.22, 84.26-84.28, 84 30,
84.31, 84.34— 84.3 7, 84.40—84.48, 84.51, 84.60—84 62, 84 72 and 84 73.
(f) the Member must comply with 24 C.F.R. §92.351 with regards to actions taken to assure MBE/WBE
are utilized when possible in the procurement of goods and services
(g) The Member must maintain sufficient records of affirmative marketing and MBEIWBE activity in
accordance with 24 C.F.R.9§2 508 (7) (ii)
(h) 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.
(i) The Member will make a good-faith effort to, on a continuing basis,maintain a drug-free workplace
per the requirements of 24 C F,R. §21 (B)
(j) The Member and its activities must comply with all of the following Federal laws, executive orders
and regulations pertaining to fair housing and equal opportunity. They are: Title VI of the Civil
Rights Act of 1964,As Amended(42 U.S.C.2000d et seq.),found in 24CFR Part 1; The Fair Housing
Act(42 U S.C.3601-3620),found in 24CFR Part 100-115;Equal Opportunity in Housing(Executive
Order 11063,as amended by Executive Order 12259),found in 24CFR Part 107;Age Discrimination
Act of 1975, As Amended(42 U S C 6101), found in 24CFR Part 146. The Member must describe
the actions it will take in the areas of enforcement, education, and removal of barriers and
impediments to affirmatively further fai housing according to applicable state and federal law. The
Member certifies that it will affirmatively further fair housing, including the following: conducting
an analysis to identify the effects of any impediments identified through that analysis and maintaining
records reflecting the analysis an actions in this regard.
(k) In order to assure that each Member is conveying certain HOME Program requirements to the eligible
homeowners, the Member must comply with the following Program Guidelines: PG 4.1.4.2
(Homeownership Affordability).PG 2 6.1 Property Standards; and Section 15(a) of this Agreement
(1) It will provide a written statement completed by the Member's board of directors or other governing
body stating that the Subrecipient does not have any overdue tax debts,as defined by N C G.S. §105-
243.1,at the federal,State or local level. The written statement shall be made under oath and returned
to the Agency in order for program disbursements to be made (Certification example included in
Attachment 1,unless all submitted and approved).
(m) It will sign and provide the Certification and Assurances document attached here to as Attachment 2.
(n) It will comply with N C E-Verify which means the federal E-Verify program operated by the United
States Department of Homeland Security and other federal agencies, or any successor or equivalent
program used to verify the work authorization of'newly hired employees pursuant to federal law If'
Subrecipient employs 25 of more employees in the State of Nofth Carolina,then Subrecipient must
comply with the provisions of N C. Gen Stat. §64-2.6 including verifying the work authorization of
its employees through E-Verify and retaining the records of verification for a period of at least one
year.. All subcontractors engaged by or to be engaged by Subrecipient have or will have likewise
complied with the provisions of'N.C. Gen. Stat. §64-26.
(o) None of the funds provided under this Agreement shall be used in the performance of this Agreement
for any partisan political activity (24 C.F R §91.225), or to further the election of defeat of any
candidate for public office per the requirement of 24 C F.R. §87
Page 10 of 16
34
(d) 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.
(e) All reports and audit confirmations shall be sent to:
North Carolina Housing Finance Agency
Attention: Mark Lindquist, Senior Program Compliance Coordinator
PO Box 28066
Raleigh,NC 27611-8066
or
Email Address: mwlindquist@nchfa com
Section 4: Close Out:
(a) The Member must initiate close-out procedures when the Date of Completion identified in the
Funding Agreement is reached.
(b) No new rehabilitation contracts obligating any E'SFRLP funds may be executed after the Date of
Completion Contracts executed prior to the Date of Completion may be amended after that date by
no more than ten percent (10%) of the original contract amount in order to accommodate necessary
changes to the scope of work.
(c) Members will be required to submit the Certification of Completion and Final Cost form(CCFC) to
the Agency no later than 6 months following the Date of Completion the Member will also be
required to submit revisions and updates of the Certification that may be necessary as a result of
audits or reporting errors.
(d) All ESFRLP funds not disbursed for eligible costs associated with rehabilitation contracts executed
prior to the Date of Completion, including all net Program income/interest earned,must be remitted
to the Agency with the CCFC
(e) Members are required to submit a minimum of one (1) human interest story, with photographic
documentation of before and after rehabilitation, focusing on one of the households assisted under
ESFRLP17.
PART XI: Representations,Warranties and Covenants
The Member hereby warrants,represents and covenants that:
(a) It is a unit of local government that reports to the Local Government Commission or it is a non-
profit entity duly organized and in good standing in the State of North Carolina
(b) All Subaward funds must be used for purposes and activities described in this Agr'eement..
(c) 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.0.4851
—4856),and the implementing regulations at 24CFR35, subparts A,B,J,K,M and R.
(d) If the Member is a governmental body, it will comply with OMB Circular A-87 as amended or
superseded by 2 C F.R. 200, related to certain principles and standards for determining costs for
Federal awards carried out through grants, cost reimbursement contracts and other agreements with
State and local governments
(e) It will comply with the sections regarding financial management and procurement standards for the
HOME program found at 24 C F,R §§ 85 6, 85.12, 85.20, 85.22, 85 26, 85.32-85.34, 85.36, 85.44,
85.51 and 85.52,as maybe amended from time to time. If the Member is a not-for-profit organization
Page 9 of 16
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Attachment 1
CERTIFICATIONS AND ASSURANCES
By signing below,the authorized official of'Member certifies to the best of'hisllier knowledge and belief,
that:
Certification ReLyardine Lobb '
1) No Federal appropriated funds have been paid or will be paid,by or on behalf of the Member,,to
any person for influencing or attempting to influence an officer or employee of any agency, a
Member of Congress, an officer or employee of Congress, or an employee of a Member of
Congress in connection with the awarding of any Federal contract,the making of any Federal
giant,the making of any Federal loan,the entering into of any cooperative agreement,and the
extension,continuation,renewal,amendment,or modification of any Federal contract,grant,
loan, or,cooperative agreement.
2) H any funds other than Federal appropriated funds have been paid or will be paid to any person
for influencing or intending to influence an officer or employee of any agency,a Member of
Congress, or an officer or employee of Congress, or an employee of a Member of Congress in
connection with this Federal contract, grant,loan, or cooperative agreement,the Member will
complete and submit a Standard Form—LLL, "Disclosure Form to Report Lobbying", to the
Agency,
3) The Member will requiie that the language of this certification be included in the award
documents for-all subawards at all tiers(including subcontracts,subgrants,and contracts under
grants,loans, or cooperative agreements)and that all subgrantees will certify and disclose
accordingly.
4) Ihis certification is a material representation of fact upon which reliance was placed when this
transaction was made or entered into Submission of'this certification is a prerequisite for
making or entering into this transaction imposed by Section 1352,Title 31,U.S, Code. Any
person who fails to file the required certification shall be subject to a civil penalty of'not less than
$10,000 and not more than$100,000 for each such failure.
Debarment Suspension,and Other Responsibility Matters
The Member-certifies by signing below that neither it nor,its principals ate presently debarred, suspended,
proposed for debarment, declared ineligible or voluntarily excluded from participation in this transaction
by any federal department or agency.
36
Audit and Access to Records
The Member,certifies by signing below that it complies with the Unifbim Administrative Requirements,
Cost Principles,and Audit Requirements for Federal Awards(2 C.F.R 200),will provide notice of the
completion of required audits and any adverse findings which impact this subaward as required by parts
200,501-200,521,and will provide access to records as required by parts 200,.336,200337,and 200.201
as applicable.
En fish Lan ua e 2 CYR 4200.111
The Member certifies by signing below that it will comply with 2 CFR§200.111 which states,in part,
that all Federal financial assistance announcements and Federal award information must be in the English
language and must be in the terms of U.S Dollars.. The Subrecipient may translate the Federal award and
other documents into another-language. In the event of inconsistency between any terms and conditions of
the Federal award and any translation into another language,the English language meaning will control.
Where a significant portion of'the Subrecipient' s employees who are working on the Federal
awar"d/Subaward are not fluent in English,the Subrecipient must provide the Federal awar-d/Subaward in
English and the languages with which the employees ar-e more familiar,
Conflict of Interest 2 CFR 4200.112
The Member certifies by signing below that it will disclose in writing to the Agency any potential
conflicts of interest in accordance with applicable Federal Awarding Agency policy or,Agency policy
Mandatory Disclosures 2 CFR 4200.113
The Member certifies by signing below that it agrees to comply with 2 CFR§200.113 which states that
the Subrecipient must disclose,in a timely manner,in writing to the Agency all violations of Federal
criminal law involving fraud,bribery,or gratuity violations,potentially affecting the Federal Award.
Failure to make required disclosures can result in any ofthe remedies described in 2.CFR§200.338
Remedies for noncompliance,including suspension or debarment.
Authorized Member Signature
Print Name:
Title: g,,,, f r
co-�,4I'y�°)',j Date:
d
37
Attachment 2
ESFRLP Program Guidelines
Fox Pool Membei's convenience, ESFRLP Administrator's Manual (Program Guidelines) can now be
found online at NCHFA's website at (www.nchfa.com)
The terms ofthe Agreement are subject to the ESFRLP Administrator's Manual (Program Guidelines) in
all respects,whether specifically referenced in this Agreement,and all defined terms used in this Agreement
shall have the same meanings as used in the Program Guidelines. Your Administrator's Manual contains
program guidelines along with many of the forms and documents needed to successfully manage your
project under ESFRLPI7. Pool Members should periodically check the website fbr updates
In the event the Program Guidelines ar-e revised,the Agency will provide a.30 day notice to all Pool
Members After such notice to Pool Members all revisions are thereby made a part of this Agreement,
Failure of the Recipient to comply with the terms and conditions of the Program Guidelines shall be an
event of default by the Recipient under this Agreement
38
39
Attachment 3
IRAN DIVESTMENT ACT CERTIFICATION
REQUIRED BY N.C.G.S, 143C-6A-5(a)
Name of Vendor Orange County
As of the date listed below, Orange County warrants and certifies that Orange County is not identified on
the Final Divestment List created by the North Carolina State Treasurer pursuant to N.C.G S. 143-6A-4 and
found at www.nctreasurer .com1han The person signing this certification certifies that he or she is
authorized by Orange County to make the foregoing certification Orange County further agrees that it will
not utilize any subcontractor that is identified on the Final Divestment List in connection with any contract
or bid with the North Carolina Housing Finance Agency..
Signature Dat
Printed Name Title
Notes to persons signing this form:
N.C.G S 143C-6A-5(a)requires this certification for bids or contracts with the State of North
Carolina, or any agency or other political subdivision of the State of North Carolina the certification
is required at the following times:
• When a bid is submitted
• When a contract is entered into(if the certification was not already made when the vendor
made its bid)
• When a contract is renewed or assigned
N C.G S 143C-6A-5(b)requires that contractors with the State, a North Carolina local government, or
any other political subdivision of the State of North Carolina must not utilize any subcontractor found
on the State Trcasurer's Final Divestment List
40