R12-044 ;1
1', RESOLUTION NO. R 12- O 4
2
31', A RESOLUTION OF THE CITY COMMISSION OF
4 1 THE CITY OF BOYNTON BEACH, FLORIDA,
5 ' APPROVING A NON - PROFIT DEVELOPER
61 AGREEMENT BETWEEN THE CITY OF BOYNTON
7 , BEACH AND THE BOYNTON BEACH FAITH-
811 BASED COMMUNITY DEVELOPMENT
9j CORPORATION TO ACT AS DEVELOPER UNDER
10 , THE CITY'S NEIGHBORHOOD STABILIZATION
11, PROGRAM 3 (NSP3); AUTHORIZING THE
12; INTERIM CITY MANAGER AND CITY CLERK TO
13 EXECUTE THE AGREEMENT AND PROVIDING AN
14 ! EFFECTIVE DATE. '
15
16' WHEREAS, the City Commission previously approved Resolution R10 -028 to
17 amend the Community Development Block Grant (CDBG) Sub- Recipient contract
181 agreement between the City of Boynton Beach and the CDC's to facilitate the
191 implementation of the NSP program; and
201 , WHEREAS, the Agreement allows for the CDC's to act as the developer for this
21 program which will enable the City to encumber funds and procure foreclosed or
22 abandoned properties in a more expeditious manner; and
231 l WHEREAS, upon recommendation of staff, the City Commission of the City of ,
24 Boynton Beach Florida deems it to be in the best interest of the citizens of the City of
II ' Boynton Beach to approve and authorize execution of the Non - Profit Developer
26 1 Agreement between the City of Boynton Beach and The Boynton Beach Faith -Based
1
27; I Community Development Corporation to act as developer under the City's Neighborhood
281 Stabilization Program 3 (NSP3).
,
2911 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF
1
30 THE CITY OF BOYNTON BEACH, FLORIDA, THAT:
31 Section 1. The foregoing "Whereas" clauses are hereby ratified and confirmed
Document in Windows Internet Explorer I �
-1
it
1 as being true and correct and are hereby made a specific part of this Resolution upon
ii
21 adoption.
8 Section 2. The City Commission of the City of Boynton Beach, Florida, hereby
4 approves the Non - Profit Developer Agreement between the City of Boynton Beach and
51 The Boynton Beach Faith -Based Community Development Corporation, to act as
61 developer under the City's Neighborhood Stabilization Program 3 (NSP3), a copy of the
i
71 Non -Profit Developer Agreement is attached hereto as Exhibit "A ".
8, Section 3. The City Commission of the City of Boynton Beach authorizes the
g : Interim City Manager and City Clerk to execute the Non - Profit Developer Agreement
10i between the City of Boynton Beach and The Boynton Beach Faith -Based Community
11 Development Corporation
1 Z Section 4. That this Resolution shall become effective immediately.
Document in Windows Internet Explorer
-2-
1 �
+h
1 PASSED AND ADOPTED this 15 day of May, 2012.
2'
31 CITY OF BOYNTON BEACH, FLORIDA
5 , )(5
6H Mayor — Woodrow L. Hay
91 ` °ice ay�� McCray
1 C '
11
12 om : toner Willia • r : e
13; /
14 1 ■"S /e��a∎.
151 . ssi�� -:te : z
17 /
18 Commissioner — arlene Ross
19 ATTEST:
20, P -
211 . L •
22 Jane- M. Prainito, MMC
23 ' Clerk
24
2511
261 j
27 i
! ( (Corporate Seal)
I I
i
I ,
l i
I
I
it
Document in Windows Internet Explorer
-3-
I ,
1- k k , r D - () ,
NON - PROFIT DEVELOPER AGREEMENT
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
COMMUNITY DEVELOPMENT BLOCK GRANT
NEIGHBORHOOD STABILIZATION PROGRAM -CFDA NO. 14.218
AWARD NUMBER: B- 11 -MN -12 -0002
THIS AGREEMENT, entered into this day of .- 1•A , 2012, by and between
The City of Boynton Beach, a Florida municipal corpor ion, hereinafter referred to as
"CITY ", and the Boynton Beach Faith -Based Community Development Corporation,
hereinafter referred to as "NON- PROFIT DEVELOPER."
WITNESSETH:
WHEREAS, CITY has received federal funding pursuant to the Neighborhood Stabilization
Program under the Wall Street Reform and Consumer Protection Act of 2010 hereinafter
referred to as NSP3 to improve neighborhoods by reducing the number of abandoned
and foreclosed homes. Unless otherwise noted in the Housing and Economic Recovery Act
of 2008 approved July 30, 2008 (as amended) and the alternative requirements in the NSP
notices, NSP funds are to be considered as CDBG funding and are governed by the CDBG
regulations at 24 CFR 570; and
WHEREAS, the CITY allocated $851,958 in NSP3 funds for the acquisition, rehabilitation
and resale of foreclosed and abandoned residential properties and $200,000 for
assistance in the new construction of housing on vacant land for low and moderate
income buyers.
WHEREAS, the designation of a developer partner and provision of financial assistance
to a developer as defined by NSP is a permitted use of NSP funds to undertake certain
activities to primarily benefit low and moderate income persons and neighborhoods to
address abandoned and foreclosed homes; and
WHEREAS, the NON - PROFIT DEVELOPER qualifies to be a NSP developer; and
WHEREAS, the CITY desires to engage the NON- PROFIT DEVELOPER to render certain
services requisite to the accomplishment of its goals.
NOW. THEREFORE, in consideration of the mutual covenants, promises and
representations contained herein, the parties hereto agree as follows:
ARTICLE ONE: DEFINITIONS
1) "CDBG" means Community Development Block Grant.
2) "CITY" means The City of Boynton Beach.
3) "Developer" A for - profit or private nonprofit individual or entity that the
grantee provides NSP assistance to for the purpose of (1) acquiring homes and
residential properties to rehabilitate for use or resale for residential purposes and
(2) constructing new housing in connection with the redevelopment of
demolished or vacant properties. Developers must have site control of NSP
properties and are subject to risk in the developing the properties.
4) "Developer Fee" means the payment to the NON - PROFIT DEVELOPER as
defined in Section VI of the Policy Guidelines for the Neighborhood Stabilization
Program - Ownership. Policy Guidelines are attached as Exhibit A herewith.
5) "Development Director" means the Director of the Development Department
or designee.
6) "Eligible Family" means a family who is eligible to participate in the
Neighborhood Stabilization Program as defined in Section X of the Policy
Guidelines attached as Exhibit A herewith.
7) "Eligible Neighborhood" means an area where Neighborhood Stabilization
Grant funds may be used to purchase homes as identified in the Neighborhood
Stabilization Grant application that was approved by the Department of Housing
and Urban Development.
8) "HUD" means the federal Department of Housing and Urban Development
9) "NON- PROFIT DEVELOPER" means a non - profit entity that has been approved
to participate in the Neighborhood Stabilization Program as designated in
Section V of the Policy Guidelines attached as Exhibit A.
10) "NSP" means the Neighborhood Stabilization Program.
11) "NSP home" means an abandoned or foreclosed home, condominium or
townhome purchased with Neighborhood Stabilization Program funds.
12) "CID" means the Boynton Beach Community Improvement Division.
13) "Subsidy" means the amount of NSP funds that are used by the CITY to make
the NSP Home affordable to an Eligible Family. Subsidy may include the Down
Payment Assistance, Closing Costs and any grant funds provided to the
applicant. In cases where the applicant receives a 0% interest rate loan, the 0 %
loan will be Subsidy. The subsidy will be in the form of a 0% interest rate junior loan
for the term of the first mortgage.
14) "CDBG Regulations" means 24 CFR 570.
15) "Low and Moderate - Income" means those who fall within the income range
set by HUD for participating in the CDBG program. The HUD income range is
contained in Exhibit B which is attached hereto and made a pars thereof.
16) "Middle Income" A family with an income equal to or less than 120% of the
Area Median Income (AMI) as determined by HUD and who is eligible to
participate in the Neighborhood Stabilization.
17) "Recapture Period" There is an affordability period which If the property is
sold, refinanced or transferred during the affordability period, the balance due
will be paid to the NON - PROFIT DEVELOPER in accordance with the terms of the
Note.
18) "Contractor" The individual or company chosen to perform rehabilitation or
other related work at the NSP properties.
19) "Vicinity Hiring" NSP requirement that recipients show make efforts to employ
persons or provide business opportunities for residents of the areas of greatest
need selected by the City as a part of its NSP3 plan.
20) "Net Sales Proceeds" means the amount of NSP3 funds that are collected by
the NON- PROFIT DEVELOPER after all reasonable and allowable cost such as
closing and recording fees are deducted.
ARTICLE TWO: SCOPE OF SERVICES
The NON - PROFIT DEVELOPER, in a manner satisfactory to the CITY, shall carry out or
cause to be carried out all services described or referred in the Policy Guidelines in
Exhibit A, and the Scope of Work in Exhibit B which are attached hereto and made a
part hereof. Such services shall be performed, except as otherwise specifically stated
herein, by persons or instrumentalities solely under the dominion and control of the NON-
PROFIT DEVELOPER.
ARTICLE THREE: MODIFICATION OF SCOPE OF SERVICES
This Agreement constitutes the sole and complete understanding between the parties
and supersedes all agreements between them, whether oral or written with respect to
the subject matter. No amendment, change or addendum to this Agreement is
enforceable unless agreed to in writing, and executed by both parties. Any material
change in the Scope of Services or any increase in the compensation for the services
shall require the parties to enter into a written amendment to this Agreement, executed
by both parties.
ARTICLE FOUR: TIME OF PERFORMANCE
The timely performance and completion of the required Scope of Services is vitally
important to the interest of the CITY. The CITY shall pay invoices provided by the NON-
PROFIT DEVELOPER following the CITY's review and approval, or reimburse the NON-
PROFIT DEVELOPER for the services described in the Scope of Work under Exhibit A, and
performed by the NON - PROFIT DEVELOPER starting on the effective date. The effective
date is the date of execution of this Agreement by the CITY.
The NON - PROFIT DEVELOPER recognizes and understands that by entering into
this Agreement, the CITY wishes to further its provision of affordable housing
to income qualified buyers in a timely manner. The NON - PROFIT DEVELOPER
also recognizes and understands that the CITY's performance as
established under this Agreement is critical to the CITY's effort in the
provision of affordable housing and the CITY's compliance with NSP3
requirements, and in particular with requirements for the expenditure of NSP3
funds, and therefore, time is of the essence in regard to the NON - PROFIT
DEVELOPER's completion of the activities funded under this agreement and the
expenditure of the NSP3 funds.
In recognition of the above, the NON- PROFIT DEVELOPER shall implement the
project activities in a manner that ensures that no less than fifty percent (50 %) or $525,
979 of the NSP3 allocation is expended by December 30, 2012, and on e h u n d r e d
percent (100%) or $1,051,958 is expended by December 31, 2013.
The NON - PROFIT DEVELOPER shall also ensure the completion of the project
activities as provided herein such that the units are occupied by eligible
households by the closeout of the NSP3 grant which is to be determined by HUD.
The CITY will review and monitor the Developer's expenditures as deemed
necessary prior to the HUD mandated deadline and will take action including
de- obligation of funds to comply with NSP regulations.
Should the CITY fail to meet the requirement to expend its award prior to the
deadline in its grant agreement with HUD; HUD, on the first business day after that
deadline, will notify the CITY, restrict the amount of unused funds in the grantee's
line of credit, and begin the process of de- obligating the unused amounts.
ARTICLE FIVE: CONSIDERATION AND LIMITATION OF COSTS
The NON - PROFIT DEVELOPER shall be paid by the CITY for allowable costs, determined
by CITY for the services described in Exhibit A in an amount not to exceed the amount
specified in Exhibit A. In the event the project costs exceed the stated amount, the
NON - PROFIT DEVELOPER shall be responsible for the costs, which exceed the amount
specified in Exhibit A.
ARTICLE SIX: PAYMENTS
A. Invoices that have been approved by the NON - PROFIT DEVELOPER, following
submittal to the CITY, and review by the CITY shall be paid directly by the CITY or,
the CITY shall reimburse the NON - PROFIT DEVELOPER. In both cases, payment will
be limited to items specifically identified in Exhibit A.
B. The NON - PROFIT DEVELOPER shall submit payment requests to CID. These
requests will only be approved if:
1. The contractor's requests for payment has been reviewed and
approved by the NON - PROFIT DEVELOPER as stated on the Certificate of
Payment and the attached original invoice.
2. Upon receipt of the above enumerated documentation, and review
and approval by the CID, the CITY will initiate the payment process.
C. All disbursements by the NON - PROFIT DEVELOPER must be fully documented
to the CITY so as to be available, on request, for inspection or audit in
accordance with the provisions of Article Ten herein below.
D. Within 30 days after completion of all services to be performed, the NON-
PROFIT DEVELOPER shall render a final and complete statement to the CITY of all
costs and charges for services not previously invoiced. The CITY shall not be
responsible for payments of any charges, claims or demands of the NON - PROFIT
DEVELOPER not received within said thirty (30) day period; however, such time
may be extended at CITY'S discretion not to exceed a period of ninety (90)
days, provided the delay in its submission is not occasioned by any fault or
negligence of the NON - PROFIT DEVELOPER.
ARTICLE SEVEN: COMPLIANCE WITH LOCAL AND FEDERAL RULES, REGULATIONS AND LAWS
During the performance of this Agreement, the NON- PROFIT DEVELOPER agrees to
comply with all applicable federal, state, and local laws, rules, regulations and orders ,
including, but not limited to those listed below which by references are incorporated
and made a part hereof. The NON - PROFIT DEVELOPER further agrees to abide by all
other applicable laws, rules, regulations and orders that may be applicable to CDBG
activities.
APPLICABLE LAWS, RULES AND REGULATIONS
1. 24 CFR Part 570, as amended - The regulations governing the expenditure of
Community Development Block Grant funds.
2. 24 CFR Part 58 - The regulations prescribing the Environmental Review
procedure.
3. 36 CFR Part 800 - The regulations outlining the procedures for the protection
of historic and cultural properties.
4. 24 CFR Part 1 - The regulations promulgated pursuant to Title VI of the 1984
Civil Rights Act.
5. 24 CFR Part 107 - The regulations issued pursuant to Executive Order 11063
which prohibits discrimination and promotes equal opportunity in housing.
6. Executive Order 11246, as amended by Executive Orders 11375 and 12086 -
which establishes hiring goals for minorities and women on projects assisted with
federal funds.
7. Title VII of the 1968 Civil Rights Act as amended by the Equal Employment
Opportunity Act of 1972 - which prohibits discrimination in employment.
8 24 CFR 135 - Regulations outlining requirements of Section 3 of the Housing
and Urban Development Act of 1968, as amended.
9. Age Discrimination Act of 1973
10. National Flood Insurance Act of 1968
11. 24 CFR Part 130 - Regulations that prohibit discrimination in employment in
federally assisted construction contracts.
12. 40 CFR Part 15 - Regulations relating to the applicability of the Clean Air and
Water Pollution Acts.
13. Contract Work - Hours and Safety Standards Act
14. Lead Based Paint Poisoning Preventive Act
15. Section 504 of the Rehabilitation Act of 1973
16. Uniform Relocation Assistance and Real Property Acquisition Policies
Act of '1970
17. 29 CFR Parts 3, 5 and 5a - Regulations which prescribe the payment of
prevailing wages and the use of apprentices and trainees on federally assisted
projects as mandated by the Davis -Bacon Act. HUD Form 4010, which describes
the Davis -Bacon Act, is included as part of this agreement and must be included
in all construction contracts funded by CDBG.
18. Revised Order Number 4 - Regulations that establish guidelines for the
implementation of Executive Order 11246 as amended by Executive Orders
11375 and 12086.
19. Executive Order 11914 - Prohibits discrimination with respect to the
handicapped in federally assisted projects.
20. Executive Order 11625 and U.S. Department of Housing and Urban
Development Circular Letter 79 -45 - which prescribe goal percentages for
participation of minority businesses in Community Development Block Grant
Contracts.
21. Copeland Anti - Kickback Act
22. Florida Statutes, Chapter 112 - which deals with conflict of interest.
23. HUD - required reports, circulars, and procedures, such as the Grantee
Performance Report.
24. Administrative Procedures - procedures which may be issued by the CITY
Department of Financial Management and /or the Community Development
Manager who are responsible to the CITY for the implementation of the CITY'S
Community Development Block Grant Program.
25. Public Law 100 -430 - the Fair Housing Amendments Act of 1988.
26. 24 CFR 570, Subpart J - regulations covering standard Granted Administration
Procedures. These replace OMB Circular A -102. This subpart includes 24 CFR
570.502.
27. OMB Circular A -133 - concerning annual audits.
28. OMB Circular A -122 - which identifies cost principles.
29. CFR Part 84 - Uniform Administrative Requirements for Grants and
Agreements.
ARTICLE EIGHT: PROJECT PUBLICITY
Any news release or other type of publicity pertaining to the project as stated herein
must recognize the "City of Boynton Beach" as the recipient funded by the U.S.
Department of Housing and Urban Development and the entity that provided funds for
the project.
ARTICLE NINE: MANAGEMENT ASSISTANCE
The CID Manager will be available to the NON - PROFIT DEVELOPER to provide guidance
on CDBG requirements. .
ARTICLE TEN: MAINTENANCE OF RECORDS
The NON - PROFIT DEVELOPER shall maintain all records required by the CDBG Regulations
and Section 119.07, Florida Statutes, the "Florida Public Records Law ".
A. The NON - PROFIT DEVELOPER shall maintain such records, accounts, property
records, and personnel records, as are deemed necessary by the CITY to assure
proper accounting of project funds and compliance with the provisions of this
Agreement.
The NON - PROFIT DEVELOPER shall maintain all necessary financial records as
required by CDBG Regulations and shall maintain the following financial records:
1. An invoice and a copy of a warrant for all items purchased and paid
for under standard NON - PROFIT DEVELOPER procedures:
2. The current, prevailing NON - PROFIT DEVELOPER Agreement, all project
contracts and corresponding billings;
3. For Force Account Construction all records indicating name(s),
position(s), number of hours and total labor cost;
4. For any materials drawn from stockpile records indicating amount of
materials and cost based on the purchase price;
B. All records and contracts of whatever nature required by this Agreement
shall be available for audit, inspection or copying at any time during normal
business hours and as often as the Community Development Manager , CITY,
HUD, or Comptroller General of the United States , or other federal agency, may
deem necessary. CITY shall have the right to obtain and inspect any audit
pertaining to the performance of this Agreement made by any local, state or
federal agency. The NON - PROFIT DEVELOPER shall retain all of its records and
supporting documentation applicable to the Agreement for three (3) years after
either the resolution of the final audit or HUD approval of the closeout Grantee
Performance Report, whichever is later.
ARTICLE ELEVEN: REPORTING AND EVALUATION
The NON - PROFIT DEVELOPER shall maintain detailed financial and program records
related to the acquisition, construction and sale of NSP properties to both ensure that the
CITY is in compliance with all CDBG and NSP rules and regulations and to allow the CITY
to evaluate both the performance of the NON - PROFIT DEVELOPER and the NSP Program.
The NON - PROFIT DEVELOPER shall provide the Community Development Manager, in a
form prescribed by CITY, monthly reports summarizing progress, as well as quantitative
information timetables, and financial information for monitoring and evaluating all
aspects of Project activities. The City shall provide a format for the reporting that shall be
in conformance with HUD reporting requirements.. In addition, the Developer should
provide reports to the City regarding the reuse of NSP sales proceeds and any
development of additional units up until the end of the agreement and then until all
subsequent sales proceeds are expended.
The City will also receive reports on the expenditure and reuse of NSP sales proceeds
and performance data, such as number of units, households and beneficiaries to be
entered into the DRGR Quarterly Performance Report until the end of the NSP
agreement. Close out procedures after termination of the agreement will be
determined by HUD and they must be in accordance with HUD requirements.
These reports may be provided as part of the financial reimbursement process. The CITY
shall have access to and be able to make copies and transcriptions of such records as
may be necessary in the determination of the CITY or HUD to accomplish this obligation.
Fair Housing & Equal Opportunity: In compliance with recordkeeping requirements of
Title VI, Section 504, ADA, Section 109, the NON - PROFIT DEVELOPER shall maintain
adequate records to accurately reflect the racial, ethnic, gender and disability data for
applicants and all program participants, as required by the regulations, to show that
persons from protected classes were afforded an equal opportunity to apply for funding
and support compliance with Title VI. The NON - PROFIT DEVELOPER shall collect and
transmit demographic and other data for rejected applicants as well as accepted
applicants for funding to the CITY on a quarterly basis.
ARTICLE TWELVE: CAPITAL EQUIPMENT, SUPPLIES OR EXPENDABLE PROPERTY
Any capital equipment acquired by the NON- PROFIT DEVELOPER for the purpose of
carrying on the projects stated herein, and approved by the CITY shall be subject to the
provisions of the Property Standards section of 24 CFR Part 84 including, but not limited
to, the provisions on use and disposition of property.
ARTICLE THIRTEEN: CONTRACT LIABILITY
The CITY shall not be responsible to any person, firm, or corporation (except the NON-
PROFIT DEVELOPER) for assignment of any aspects including providing goods or services
to the NON - PROFIT DEVELOPER in connection with the services it has agreed to perform
hereunder, or for debts or claims accruing to such parties against the NON - PROFIT
DEVELOPER; and there is no contractual relationship, either express or implied, between
CITY and any other person, firm, or corporation supplying any work, labor, services,
goods or materials to the NON - PROFIT DEVELOPER as a result of its services to CITY
hereunder. Nothing in this section is intended to alter or waive the CITY's entitlement to
statutory or common law sovereign immunity, or to extend the CITY's liability beyond the
limits established in Section 76828, Florida Statutes, as amended.
ARTICLE FOURTEEN: CONTRACTS
M contracts made by the NON - PROFIT DEVELOPER to carry out the activities described
in Exhibit A shall be made in accordance with all applicable laws, rules and regulations
stipulated in this Agreement. Any work or services contracted hereunder shall be
specified by written contract or Agreement and shall be subject to each Article set forth
in this Agreement.
ARTICLE FIFTEEN: CONFLICT OF INTEREST
No employee, agent, consultant, officer or elected official or appointed official of the
NON - PROFIT DEVELOPER who exercises or have exercised any function or responsibility
with respect to NSP activities assisted under or who are in the position to participate in a
decision making process or gain inside information with regard to such activities, may
obtain a financial interest or benefit from a CDBG assisted activity, or have a financial
interest in any contract, subcontract or agreement with respect to a CDBG assisted
activity or with respect to the proceed of the CDBG assisted activity, either for
themselves or those with whom they have family or business ties, during their tenure or
for one year thereafter.
ARTICLE SIXTEEN: INDEMNIFICATION
The NON - PROFIT DEVELOPER and his Contractor shall pay on behalf of or indemnify and
hold harmless the CITY, its Commissioners, officers, employees, agents, and volunteers
from and against any and all claims, actions, damages, fees, fines, penalties, defense
costs, suits or liabilities which may arise out of any act, neglect, omission or default of the
NON - PROFIT DEVELOPER or Contractor arising out of or in any way connected with the
NON - PROFIT DEVELOPER or Contractor's (or officers, employees, agents, volunteers and
subcontractors, if any) performance or failure to perform under the terms of this
Contract. Pursuant to F.S.S.725.06(2), the Contractor shall indemnify and hold harmless
the CITY, its Officers and Employees from liabilities, damages, losses, and costs, including
but not limited to, reasonable attorney's fees to the extent caused by the negligence,
recklessness or intentional wrongful conduct of the Contractor and persons employed or
utilized by the Contractor in the performance of the contract. This section of the
contract will extend beyond the term of the contract.
ARTICLE SEVENTEEN: INSURANCE
The NON - PROFIT DEVELOPER shall procure and maintain adequate insurance coverage,
as described in Exhibit C attached hereto and made a part thereof.
ARTICLE EIGHTEEN: NON - ASSIGNABILITY
The NON - PROFIT DEVELOPER may not assign this Agreement without the prior written
consent of the CITY.
ARTICLE NINETEEN: HEADINGS
All articles and descriptive headings of paragraphs in this Agreement are inserted for
convenience only and shall not affect the construction or interpretation hereof.
ARTICLE TWENTY: NET SALES PROCEEDS
In the event that any net sales proceeds are received during the contract, the NON-
PROFIT DEVELOPER must utilize such proceeds in compliance with NSP rules and
regulations. Entities designated as NSP developers are not subject to the program
income requirements.
The reuse of NSP sales proceeds may allow sub - recipients /developers to retain "NSP Sales
Proceeds" to use in acquiring, rehabilitating and reselling additional houses /units over
and above the original ones. Developers will be entitled to the same developer fee
percentage allowed per this agreement. Sub - recipients may charge eligible activity
delivery fees to the retained income.
The Sub - recipient /Developer, where applicable will provide a quarterly report that
outlines how many houses were acquired as well as sold, and proceeds received, along
with a financial reconciliation of proceeds for houses acquired with New Sales Proceeds.
The reuse of NSP sales proceeds will require the Developer to retain "NSP Sales
Proceeds" to use in acquiring, rehabilitating and reselling additional houses /units over
and above the original ones. The Developer will be entitled to the same developer fee
percentage on reused funds that is allowed per this agreement.
ARTICLE TWENTY -ONE: SUSPENSION AND TERMINATION
In accordance with 24 CFR 85.43, suspension or termination may occur if the NON-
PROFIT DEVELOPER materially fails to comply with any term of this Agreement. The
Agreement may also be terminated, by either parties, for convenience in accordance
with 24 CFR 85.44, which provides for termination for mutual convenience, or partial
termination for specified reasons.
ARTICLE TWENTY -TWO: CONDITIONS FOR RELIGIOUS ORGANIZATIONS
CDBG funds may not be used for religious activities or provided to primarily religious
organizations. 24 CFR 570.200(j) specifies the limitations on CDBG funds, and is herein
incorporated by reference
ARTICLE TWENTY- THREE: CERTIFICATION REGARDING LOBBYING
The undersigned certifies, to the best of his or her knowledge and belief, that:
A. No Federal appropriated funds have been paid or will be paid, by or on behalf
of the undersigned, 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 grant, 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.
B. If any funds other than Federal appropriated tunds have been paid or will be
paid 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 this
Federal contract, grant, loan, or cooperative agreement, the undersigned shall
complete and submit Standard Form -LLL, "Disclosure Form to Report Lobbying ", in
accordance with its instructions.
C. The undersigned shall require that the language of this certification be
included in the award documents for all sub - awards at all tiers (including
subcontracts, sub- grants, and contracts under grants, loans, and cooperative
Agreements) and that all NON - PROFIT DEVELOPERS shall certify and disclose
accordingly.
ARTICLE TWENTY -FOUR: USE OF REAL PROPERTY AND REVERSION OF ASSETS
The use and disposition of real property and equipment under this Agreement shall be in
compliance with the following requirements:
A. The NON - PROFIT DEVELOPER shall transfer to the Grantee any unspent and un-
obligated NSP funds on hand and any accounts receivable attributable to the
use of funds under this Agreement at the time of expiration, cancellation, or
termination, unless otherwise specified in the HUD closeout agreement with the
Grantee.
B. Real property under the NON - PROFIT DEVELOPER'S control that was acquired
or improved, in whole or in part, with funds under this Agreement shall be used in
accordance with the NSP reuse and continued affordability requirements. If the
NON - PROFIT DEVELOPER fails to use NSP- assisted real property in a manner that
meets NSP eligibility, affordability and benefit requirements within and for the
prescribed period of time, the NON- PROFIT DEVELOPER shall comply with the
applicable sections under 24 CFR 570.503, 570.504, and 570.505. Any real
property within the NON - PROFIT DEVELOPER control that is acquired or improved
in whole or part with NSP /CDBG funds in excess of $25,000 must adhere to the
CDBG Regulations 570.505.
C. In the event that the NON - PROFIT DEVELOPER declares bankruptcy or closes
operations for any reason, all assets including real property and equipment which
were acquired, in whole or in part, with funds under this Agreement shall revert
back to the CITY (prorated to reflect the extent to which funds received under
this Agreement were used to acquire the asset). Equipment and real property not
needed by the NON - PROFIT DEVELOPER for activities under this Agreement shall
be (a) transferred to the Grantee for the NSP program or (b) retained after
compensating the Grantee an amount equal to the current fair market value of
the equipment or real property less the percentage of non -NSP funds used to
acquire the equipment
ARTICLE TWENTY -FIVE: DRUG -FREE WORKPLACE REQUIREMENTS
The SUB - RECIPIENT, as a condition of being awarded, must certify that they will provide
drug -free workplaces in accordance with the Drug -Free Workplace Act of 1988 (42
U.S.0 701) and with HUD rules at 24 CFR part 24, subpart F
ARTICLE TWENTY -SIX: JURISDICTION AND VENUE
The Agreement has been executed and delivered in, and shall be interpreted,
construed and enforced pursuant to and in accordance with the laws of the State of
Honda. NON - PROFIT DEVELOPER represents and agrees that it is familiar with all laws,
ordinances and regulations applicable to the supplies, products, equipment, software or
services to be furnished under the Agreement. The Agreement shall be governed In all
respects, whether as to validity, construction, capacity, performance or otherwise by
the laws of the state of Horida. Venue for any action arising from or related to the
Agreement shall be brought in a court of competent jurisdiction in Palm Beach County,
Honda.
ARTICLE TWENTY- SEVEN: MONITORING
The CITY reserves the nght to inspect, monitor, and observe work and services performed
by the Developer at any and all reasonable times. The CITY reserves the right to audit
the record of the Non - Profit any time during the end of this Agreement and then after
until all subsequent NSP sales proceeds have been expended.
If requested, the Developer will provide the City with a certified audit of the Non - Profit
records representing the fiscal years during the term of the agreement
Access shall be immediately granted to the CITY, HUD, the Comptroller General of the
United States, or any of their duly authorized representatives to any books, documents,
papers, and records of the Developer or its contractors which are directly pertinent to
that specific contract for the purpose of making audit, examination, excerpts, and
transcriptions
ARTICLE TWENTY EIGHT: LONG TERM AFFORDABILITY & RECAPTURE PERIOD
Affordability Requirements: The parties understand and agree that the Project is
designed to increase the number of affordable housing units in the CITY. In order to
ensure affordability, housing units provided for in this Agreement must meet the
affordability requirements as provided in 24 CFR92 252. Accordingly, the period of time
that the units must remain affordable must not be less than five (5) years if the assistance
per -unit is under $15,000; not less than ten (10) years if the per -unit assistance is between
$15,000 and $40,000; and not less than fifteen (15) years if the per -unit assistance is over
$40,000 The affordability period is calculated from the date of initial occupancy. The
affordability requirements apply without regard to the term of any loan or mortgage or
the transfer of ownership. They shall be imposed by deed restrictions, covenants running
with the land, or other mechanisms approved by HUD, except that the affordability
restrictions may terminate upon foreclosure or transfer in lieu of foreclosure. The parties
further agree that the CITY may use purchase options, right of first refusal or other
preemptive rights to purchase the housing before foreclosure or deed in lieu of
foreclosure to preserve affordability The affordability restrictions shall be revived
according to the original terms if, during the original affordability period, the owner of
record before the foreclosure, or deed in lieu of foreclosure, or any entity that includes
the former owner or those with whom the former owner has or had family or business ties,
obtains an ownership interest in the project or property.
The NSP funds are subject to recapture when the initially- assisted homebuyer (or heir)
sells, rents or refinances the NSP - assisted property within the Affordability period
If the Net Proceeds from the sale, refinance or other transfer are greater than the total
amount of Borrower's Investment, plus the balance due on the Note, then the owner will
share the Net Proceeds of such sale, refinance or other transfer with the City
IN WITNESS WHEREOF, the parties have executed the Agreement as of the date first
above written
WITNESS our Hands and Seals on the ' G �L day of , 2012
ATTEST
CITY OF BOYNTON BEACH, FLORIDA,
a Florida municipal corporation
B .t V
JAN PRAINITO, CITY CLERK ORI LAVERRIERE, INTERIM CITY M • p •
w ,,
AS APPR , ED/ • M
�d
CITY •PTORNE •
Boynton Begph Faith -Based Community Development Corporation
/� ATTEST
SigOature By•W '(' .
Print Name k 4ite Z. ,T d
BY c:OATN
Title: ,L, � -
[Print N e] /
(CORPORATE SEAL)
ITS' r-EPSic tp (
[Title]
EXHIBIT A
CITY OF BOYNTON BEACH - DEPARTMENT OF DEVELOPMENT
COMMUNITY IMPROVEMENT DIVISION
POLICY GUIDELINES FOR NEIGHBORHOOD STABILIZATION PROGRAM
OWNERSHIP
I. Program Description
The "Neighborhood Stabilization Program" (NSP) is designed to improve
neighborhoods by reducing the number of abandoned and foreclosed homes.
The NON - PROFIT DEVELOPER will identify and take title to the NSP Homes. The
NON- PROFIT DEVELOPER will rehabilitate the NSP Homes sell them to Eligible
Families.
II. Definitions
"Broker" means an individual who possesses a real estate broker's license and
has been hired by or contracted by NON - PROFIT DEVELOPER to identify the
homes that will be purchased with Neighborhood Stabilization Program funds.
"CDBG" means the Community Development Block Grant
"Construction" means the construction of a new home or the rehabilitation of an
existing home.
"CITY" means The City of Boynton Beach
"Developer's Fee" means the payment to the Non - Profit Developer as defined in
Section VI of these guidelines.
"Development Director" means the Director of the Development Department or
designee.
"Eligible Family" means a family who is eligible to participate in the
Neighborhood Stabilization Program as defined in Section X of these guidelines.
"Eligible Neighborhood" means an area where Neighborhood Stabilization Grant
funds may be used to purchase homes as identified in the Neighborhood
Stabilization Grant application that was approved by the Department of Housing
and Urban Development.
"Low Income Eligible Family" - means a family with an income less than 50% of
the Area Median Income as determined by HUD and who is eligible to
participate in the Neighborhood Stabilization Program as defined in Section X of
these guidelines.
"NON- PROFIT DEVELOPER" means a non - profit entity that has been approved to
participate in the Neighborhood Stabilization Program as designated in Section
V of these guidelines.
"NSP" means the Neighborhood Stabilization Program.
"NSP Home" means an abandoned or foreclosed home, condominium or
townhome purchased with Neighborhood Stabilization Program funds.
"CID" means the Boynton Beach Community Improvement Division.
"Seller" means the current owner of an abandoned or foreclosed properly being
acquired as an NSP Horne.
"Subsidy" means the amount of NSP funds that are used by the CITY to make the
NSP Home affordable to an Eligible Family. Subsidy may include the Down
Payment Assistance, Closing Costs and any grant funds provided to the
Community Improvement Division of The City of Boynton Beach. In cases where
the applicant receives a 0% interest rate loan, the net present value of the 0%
loan will be Subsidy. The 60 day delivery rate for FNMA for a 30 year mortgage
will be used to calculate the net present value of the interest rate.
"Current Market Appraisal Value" means the value of a foreclosed upon home
that is established through an appraisal made by a qualified appraiser and
completed within 60 days after the final offer is made to purchase the property.
HI. Eligible Uses of NSP Funds
A. NSP Funds may be used for the following eligible uses:
1. Acquisition of foreclosed or abandoned homes.
2. Construction costs including the installation of energy conservation
improvements.
3. Developer's Fees.
4. Soft costs, such as appraisals, surveys and all other due diligence
investigations.
5. Closing costs associated with the sale.
6. Other eligible uses as approved by the Community Development
Manager.
All NSP funds must be spent in compliance with NSP and CDBG rules and
regulations.
IV. Maximum Investment Per Unit
The maximum amount of NSP funds that may be spent on any one NSP Home will
be consistent with the City's Local Housing Assistance Plan (LHAP) plus the
developer fee as described in Section VI.
The City will follow the HUD 203B limits as the maximum price of a home purchase
thru the NSP program.
V. Maximum Sales Price
The maximum sales price of NSP homes shall be no more than the cost to
acquire and redevelop or rehabilitate the home or property up to the standards
established by the CITY. The cost of maintenance, boarding up the home and
other related expenditures while the property is in static condition is not included
in the max sales price. If the total cost to develop the property exceeds
appraisal value, the house must be sold for at least appraised value or lower.
VI. Non -Profit Developers
A. The City Commission of the City of Boynton Beach is authorized to designate a
non - profit agency as a NON - PROFIT DEVELOPER if it meets the following
conditions:
1. It must have received a tax - exempt ruling from the Internal Revenue
Service under Section 501(c) (3) or (4) of the Internal Revenue Code.
2 It must have financial accountability standards that permit The City of
Boynton Beach to account for and audit the awarded funds.
3. It must have a "Certificate of Good Standing" from the Florida Division of
Corporations.
4. It secures site control of the NSP assisted properties in order to develop
them.
5. It is involved in the entire development process from acquisition to
development and sale and assumes some of the risk of the project.
B. The NON - PROFIT DEVELOPER will be required to perform the following services:
1. Obtaining title to the NSP Home directly from the Seller
2 If the NSP Home is to be rehabilitated, in coordination with CID staff,
determining the repairs that will be needed on the NSP Home.
3. Selecting and managing the construction contractor. The NON - PROFIT
DEVELOPER must make sure that the contractor costs are reasonable and
in compliance with federal law. The NON - PROFIT DEVELOPER will, in
conjunction with CID staff, be expected to conduct regular inspections
during the construction to insure that all repairs meet the City of Boynton
Beach's Rehabilitation Standards.
4. Receiving invoices from the contractor, making sure that all requested
payments are for completed work and submitting payment requests to
the CID.
5. Keeping the lot mowed and the exterior landscaping maintained.
6. Paying the costs on the NSP Home while the NON - PROFIT DEVELOPER
owns the property including the cost of the utilities, taxes and insurance.
7. Identifying the Eligible Family that will purchase the NSP Home and
verifying that they meet the income and other eligibility requirements of
the NSP program.
8. Working with the Eligible Families to resolve any credit issues and making
sure that they qualify for a first mortgage on the NSP Home.
9 Identifying a suitable lender who will make the first mortgage on the NSP
Home. The NON - PROFIT DEVELOPER should identify a lender that will
provide the best financing for the Eligible Family taking into account the
mortgage rate and other fees charged by the financial institution.
10. Arranging for and coordinating the sale of the NSP Home.
11. Insuring that the Eligible Family is aware of a tax benefits that the Eligible
Family may be eligible to receive.
C. The NON - PROFIT DEVELOPER will be required to maintain detailed financial
and program records related to the Acquisition, construction and Sale of the NSP
Property to both insure that the CITY is in compliance with all CDBG and NSP rules
and regulations and to allow the CITY to evaluate both the performance of the
NON- PROFIT DEVELOPER and the NSP Program.
VII. Developer's Fee
A. In recognition that the NON - PROFIT DEVELOPER will incur expenses for the
services contained in Section V, the CITY will pay the successful NON- PROFIT
DEVELOPER a Developer's Fee. The Developer's Fee for each NSP Home will be
an amount not to exceed thirteen percent (13 %) of the total development cost.
The Developer's Fee will be distributed as follows:
1 Amount paid at dosing when the NON - PROFIT DEVELOPER obtains title to
the NSP Home - thirty three percent (33 %) of the Developer's Fee.
2. Amount paid when the NSP Home is sold to and when title transfers to an
Eligible Family - the remaining sixty seven percent (67 %) of the
Developer's Fee.
3. Any Realtor's fee paid by the NON- PROFIT DEVELOPER on the sale of the
NSP Home must be paid from the Developer's Fee. The NON - PROFIT
DEVELOPER has the option to accept or decline the Developer's Fee.
VIII. Acquisition of NSP Homes
A. The NON - PROFIT DEVELOPER will identify the homes that will be purchased
with NSP funds. All NSP Homes must be located in an Eligible Neighborhood and
will be selected based upon the following principles:
1. The proximity to employment opportunities.
2. The proximity to public transportation.
3. The proximity to needed commercial centers.
4. The housing cost to the end user - including whether the unit has access
to public water and sewer.
5. The discount from market value offered by the lender
6 The home will be located in the Northwest and Northeast Quadrants of
the City ( "Eligible Neighborhood ").
The NON- PROFIT DEVELOPER must have a current appraisal (not more than 60
days old) before making a final offer to purchase a NSP Home. The amount paid
for each NSP Home must be at a discount consistent with federal law. The
property acquisition must be made in conformance with federal law and the
NON - PROFIT DEVELOPER must disclose the appraisal amount, the amount of the
offer and inform the seller that if the NON - PROFIT DEVELOPER is unable to agree
on a purchase price that the CITY will not attempt to acquire the property
through the use of eminent domain.
NSP Homes more than 50 years old must be submitted to the State Housing
Preservation Officer to determine if they are eligible to be placed on the Federal
Historic Register. NSP Homes built before 1978 must be analyzed to determine
what actions may be necessary to comply with the federal lead based paint
regulations.
The seller of each NSP home must certify that they complied with the Tenant
Protection Provisions applicable to the NSP program.
No NSP Home may be purchased from the person or entity that will develop the
property or any person or entity related thereto.
IX. Acquisition by Non - Profit Developers
The NON - PROFIT DEVELOPER will take title to the NSP Home using NSP grant funds
for the amount negotiated.
A. The NON - PROFIT DEVELOPER must demonstrate that it has the capability to
receive the NSP Home. Prior to taking title to any NSP Home, the NON - PROFIT
DEVELOPER must submit to the Community Development Manager the following
information:
1. A marketing plan describing how the NSP Home will be sold.
2. A project schedule showing that the NSP Homes will be rehabilitated and
sold within 12 months.
3. A detailed budget for the project that includes all anticipated costs of the
project including the acquisition, construction and closing costs.
X. Construction Management
The NON - PROFIT DEVELOPER will be responsible for the award and administration
of the construction contract.
The NON - PROFIT DEVELOPER shall take all necessary affirmative steps to assure
that small firms, minority owned firms, women owned firms, and labor surplus
area firms are used when possible.
A. Affirmative steps shall include:
1. Placing qualified small and minority businesses and women's business
enterprises on solicitation lists;
2. Assuring that small and minority businesses, and women's business
enterprises are solicited whenever they are potential sources;
3. Dividing total requirements, when economically feasible, into smaller tasks
or quantities to permit maximum participation by small and minority
business, and women's business enterprises;
4. Establishing delivery schedules, where the requirement permits, which
encourage participation by small and minority business, and women's
business enterprises;
5 Using the services and assistance of the Small Business Administration, and
the Minority Business Development Agency of the Department of
Commerce; and
6. Requiring the prime contractor, if subcontracts are to be let, to take the
affirmative steps listed above.
B. Section 3
In conformance with the requirements of Section 3 of the Housing and
Community Development Act of 1 968, to the greatest extent feasible, the
NON - PROFIT DEVELOPER must award contracts for work to be performed
to eligible business concerns located in or owned by residents of the NSP
target area to ensure that the employment and other economic
opportunities generated by Federal financial assistance for housing and
community development programs shall, to the greatest extent feasible,
be directed toward low and very low income persons, particularly those
who are recipients of governmental assistance for housing. The
NON_PROFIT DEVELOPER's shall clearly document its efforts to meet these
requirements and report its efforts to the CITY.
C. Vicinity Hiring
In conformance with NSP3 requirements, the NON - PROFIT DEVELOPER shall make
best efforts TO CARRY OUT THE VICINITY HIRING PREFERENCES OF THE nsp3
PROGRAM. The NON_PROFIT DEVELOPER's shall clearly document its efforts to
meet these requirements and report its efforts to the CITY.
The NON - PROFIT DEVELOPER will select the contractor from the City of Boynton
Beach's approved contractor list. Prior to entering into contract with the
selected contractor, the NON - PROFIT DEVELOPER must submit the name of the
contractor and any other information needed by CID to determine if the
contractor has been barred from participating in any federal program. The
NON- PROFIT DEVELOPER must demonstrate that the amount being paid to the
selected contractor is reasonable.
The NON - PROFIT DEVELOPER will execute all construction contracts and sign a
Notice of Commencement for the NSP Home. All requests for payment from the
contractor must be initially submitted to the NON - PROFIT DEVELOPER for
payment. The NON - PROFIT DEVELOPER, in conjunction with CID staff, will inspect
the construction work, make decisions on the quality of work and recommend
the approval of all construction payments. CID staff will also inspect the property
and approve all payments. If CID does not authorize a payment, it will notify the
NON - PROFIT DEVELOPER. Partial payments for completed work shall have a 10%
construction holdback. Prior to making any final payments, lien releases must be
received from the contractor, all subcontractors and any business that has
provided materials and who has filed a Notice to Owner and all building permits
must have been closed out by the local jurisdiction.
XI. Eligible Families
A. To be an Eligible Family a household must meet the following
requirements:
1. Each member of the household must be a U.S. Citizen or permanent
resident alien.
2. The household must have an income at or below 120% of the County
Median Income, as adjusted by family size as determined by the
regulations governing the CDBG program.
3. The household must have qualified for a first mortgage loan from a
mortgage lender to purchase the NSP Home.
4. The head of household must have attended and completed an 8 hour
qualified community homebuyer education class presented by a HUD
approved counseling service.
5. The household must begin living in the NSP home within 30 days after
closing.
The NON - PROFIT DEVELOPER will take applications from households that want to
be designated as an Eligible Family. The NON - PROFIT DEVELOPER will collect and
verify the income and assets of the household as well as any other information
necessary to determine if the household is qualified to be an Eligible Family and
submit that information to CID. The final determination of whether a household is
an Eligible Family will be made by CID.
XII. Purchase of NSP Homes by Eligible Families
The NON - PROFIT DEVELOPER must sell all NSP Homes to Eligible Families that have
incomes at or below 120% of the County Median Income, as adjusted by family
size, however priority is to be given to families with incomes less than 80% of the
County Median Income, as adjusted by family size. The NON - PROFIT DEVELOPER
will select the Eligible Family that will purchase the NSP Home using its written
criteria provided it is consistent with the NSP regulations.
All properties must be sold to an Eligible Family for an amount equal to or less
than the cost to acquire and any construction costs on the NSP Home. The
actual sales price for any NSP Property will be the lesser of the aggregate of all
costs of acquisition, construction and redevelopment (including related activity
delivery costs, which generally include, among other things, costs related to the
sale of the property) and the appraised value after construction is completed.
All NSP Homes receiving subsidy under this program must ensure long term
affordability by using one of the following recapture or resale mechanisms.
XIII. Special Financing for Low Income Families
To meet the NSP Very Low Income requirement, the CITY may provide first
mortgage financing to very low income families at an interest rate of three
percent (3 %) for a term of up to thirty (30) years. The NON - PROFIT DEVELOPER will
service the loan and may charge a monthly servicing fee of ten percent (10%) of
all funds collected.
Financing for low income families may be provided in the form of first and
second mortgages when necessary. The second mortgage subsidy will be a zero
interest (0 %) loan for term of thirty (30) years. The assistance may be a third
mortgage if the family receiving other down payment assistance from the State
of Florida or Department of Housing and Urban Development with program rules
requiring that it be placed in the second lien position. Repayments will be
deferred until the NSP home is sold, transferred or no longer occupied as the
primary residence of the applicant. If the home remains the primary residence of
the applicant for the term of the mortgage, the full amount of the subsidy will be
forgiven.
XIV. Appeal Process
The NON - PROFIT DEVELOPER or an Eligible Family may appeal a decision of the
Community Improvement Division regarding the interpretation of these
guidelines to the City's Development Director, or his authorized representative.
The formal appeal must be submitted in writing and received no later than 30
days after the decision. The formal appeal must contain the following
information:
1. The name, address, and telephone number of the person and agency
requesting the appeal.
2. A detailed statement of the alleged factual or legal errors made by the
Community Improvement Division.
3 The form of relief requested.
The decision of the City's Development Director, or designee is final, and may not
be further appealed.
XV. Termination of Awards
In the event the NON- PROFIT DEVELOPER is unable to meet the timeline for the
use of NSP funds as out lined in its project schedule in Section VIII or is unable to
use the funds for eligible activities, the Community Development Manager may
terminate any unused funding to the NON - PROFIT DEVELOPER and take action to
recover any NSP funds that may have been previously disbursed to the NON-
PROFIT DEVELOPER. Prior to taking this action, written notice must be provided to
the NON - PROFIT DEVELOPER and the NON - PROFIT DEVELOPER must be given a
period of time to correct the problem. In addition, the Community Development
Manager must attempt to meet with the head of the NON - PROFIT DEVELOPER
and offer technical assistance to assist the NON - PROFIT DEVELOPER to meet the
requirements of the program.
XVI. Administration of the Program
The CID Manager will administer the Program consistent with these policies. In
the event an affected party believes that the Community Development
Manager or CID is not interpreting these policies correctly, the affected party
must request a meeting with the Community Development Manager to discuss
and seek resolution of the conflict.
If, following a meeting with the Community Development Manager , the issue
remains unresolved; the affected party will have the ability to appeal the
Development Director's decision as provided in Section XII.
XVII. Conflicts with Federal Law
In the event these policies are found to conflict with Federal law or the rules of
the Department of Housing and Urban Development (HUD), now or in the future,
the Federal law or rules of HUD will take precedence. The Community
Development Manager is delegated to amend these policies to the extent
necessary to make these policies consistent with federal law or the rules of HUD.
Within five working days of making any changes to these policies, the
Community Development Manager must notify the CITY Administrator, or
designee with a description of the changes made to these policies and the
reason for any changes.
EXHIBIT B
SCOPE OF WORK
1. Description of Project
A. The NON- PROFIT DEVELOPER will receive funding from the NSP Program for the
following purposes and with the following terms:
• $851,928 in NSP3 funds for the purpose of acquiring and repairing five (5)
abandoned and foreclosed homes. Of this allocation, at least $292,202
must be expended on housing for sale to households with incomes at or
below 50% area median income (AMI) as determined by HUD and
adjusted annually. The funding will be provided as a grant.
• $200,000 in NSP3 funds for the purpose of constructing new single family
houses on vacant lots with specific focus on the Ocean Breeze subdivision
for sale to households with incomes between 51% and 120% of AMI. The
funding will be provided as a forgivable loan at 0% interest for a term of
five years.
• Net sales proceeds from both activities shall be reused for additional
affordable housing in accordance with the terms of this agreement.
B. This above activities will be located in the area of the City south of Boynton
Beach Boulevard, west of the FEC Railway and east of Interstate 95 with
census tracts 62..01, 62.03, 60.02, and 63.00. The target area also includes
census tract 61.00 which is also the CDBG target area,
2. Purchase Closing
A. The NON - PROFIT DEVELOPER may request up to thirty three (33 %) percent of
the NON - PROFIT DEVELOPER'S Fee at the time of the acquisition of the home.
Only funds necessary for the loan closing and predevelopment costs will be
provided at this time. All existing liens on the property must be satisfied at
closing.
B. NON - PROFIT DEVELOPER'S title agent shall provide to the CITY at its CID office
a copy of the signed HUD -1 settlement and signed warranty deed. A title
policy must be provided as soon as possible after closing.
3. Construction Management
The NON - PROFIT DEVELOPER will coordinate with the contractor and the CID
Inspector to identify needed repairs to the NSP Home. The NON - PROFIT
DEVELOPER, in conjunction with CID will assure that any bid proposals for
proposed work on the NSP Home are cost reasonable. Contractors may request
three (3) partial payments. Requests for partial payments must be made on the
Contractor "Certificate of Payment" form, signed by the Contractor and
accompanied by a detail or work that has been completed. Prior to releasing
partial payment, a partial release of lien form signed by the contractor must be
submitted. Partial payments will be limited to 90% of completed, acceptable
work and must be approved by the NON - PROFIT DEVELOPER, the inspector, and
the CID. Final payment will be made in one lump sum after all work is satisfactorily
completed. To receive final payment, the contractor must submit a request on
the Contractor Certificate of Payment Form signed by the Contractor, NON-
PROFIT DEVELOPER, inspector and the CID or designee. The Contractor Certificate
of Payment Form should be accompanied by a detailed breakdown of the work
completed. The NON - PROFIT DEVELOPER and CID will not release final payment
until a Contract and Subcontractor Report, all releases of liens have been
supplied.
The contractor will be responsible for obtaining and paying for the necessary
building permits from the Building Department prior to beginning construction.
4. Sale of Property
NON- PROFIT DEVELOPER is not required to sell the NSP Home for the actual cost of
the project. The NSP Home must be sold to Eligible Families whose income does
not exceed 120% of the area median income adjusted to household size. Twenty
five (25 %) of the NSP funds must be set aside to be used to purchase and
redevelop abandoned or foreclosed upon home or residential properties for
housing individuals or families whose income does not exceed fifty percent (50 %)
of the area median income.
5. Subsidy
Eligible Families may receive a SUBSIDY in accordance with the Policy Guidelines
outlined in Exhibit A of this Agreement.
6. Close -Out Phase
Within 30 days of the sale of the NSP Home to an Eligible Family, the NON - PROFIT
DEVELOPER must submit all records required under this Agreement and detail the
cost of developing each NSP Home. Following acceptance of all documents by
CID, the NON - PROFIT DEVELOPER will be eligible to receive the balance of their
NON - PROFIT DEVELOPER Fee.
7 Project Budget
The estimated budget for the NSP Home is detailed below. The budget is an
estimate and the CITY will pay individual line items in excess of the amount listed
for items not currently in the budget below provided the total amount paid does
not exceed the maximum amount of the Agreement approved by the CITY. The
NSP funds shall be paid to NON - PROFIT DEVELOPER at such time as said funds are
expended by NON - PROFIT DEVELOPER in compliance with this project.
Acquisition of Property
Closing Costs to Purchase Property
Construction
Construction Contingency
Closing Costs on Sale of Property
Miscellaneous Soft Costs
NON - PROFIT DEVELOPER Fee
Total
8. Annual Reporting
If the NSP home is a rental property, the NON - PROFIT DEVELOPER shall submit on
an annual basis proof that the rent being charged on the NSP home does not
exceed the fair market rents for existing housing for comparable units in the area
as established by HUD.
9. Rehabilitation Standards
The NON - PROFIT DEVELOPER will carry out all NSP- assisted rehabilitation of an
abandoned or foreclosed -upon home or residential property in compliance with
the rehabilitation standards established and included in the City's NSP Action
Plan or NSP policies and procedures and in accordance with applicable laws,
codes, and other requirements relating to housing safety, quality, and
habitability, in order to sell, rent, or redevelop such homes and properties. At a
minimum, the NON - PROFIT DEVELOPER agrees to comply with the following green
building and energy efficiency requirements under NSP3:
• All gut rehabilitation or new construction up to three stories must meet the
Energy Star Qualified New Homes standard.
w Where relevant, housing must be improved to mitigate the impact of
disasters.
✓ All gut rehabilitation or new construction of mid- or high -rise multi - family
housing must meet ASHRAE 90.1 -2004, Appendix G plus 20% (which is the
Energy Star standard for multifamily buildings piloted by the EPA and DOE).
' Other rehab must meet these standards to the extent possible, e.g. through
use of Energy Star products to replace older obsolete products and
appliances, and use of water - efficient fixtures such as the WaterSense label.
. Compliance with disabled accessibility standards of 24 CFR Part 8 must be
incorporated into rehabilitation standards.
10. Lead -Based Paint
The NON- PROFIT DEVELOPER agrees that any construction or rehabilitation of
residential structures with assistance provided under this Agreement shall be
subject to HUD Lead -Based Paint Regulations at 24 CFR 570.487 or 24 CFR 570.608,
and 24 CFR Part 35, Subpart B. Such regulations pertain to all NSP- assisted housing
and require that all owners, prospective owners, and tenants of properties
constructed prior to 1978 be properly notified that such properties may include
lead -based paint. Such notification shall point out the hazards of lead -based
paint and explain the symptoms, treatment and precautions that should be
taken when dealing with lead -based paint poisoning and the advisability and
availability of blood lead level screening for children under seven. The notice
should also point out that if lead -based paint is found on the property,
abatement measures may be undertaken. The regulations further require that,
depending on the amount of Federal funds applied to a property, paint testing,
risk assessment, treatment and /or abatement may be conducted.
Documentation shall be retained in the files for compliance to the above
statement.
EXHIBIT C
INSURANCE
After properties are purchase, before performing any work, the Developer shall procure
and maintain, liability, hazard and all risk policies with the City as additional insured,
using the language require by the City's risk management department. The policies of
insurance shall be primary and written on forms acceptable to the CITY and placed with
insurance carriers approved and licensed by the Insurance Department in the State of
Florida and meet a minimum financial A.M. Best & Company rating of no less than A:
Excellent VII. No changes are to be made to these specifications without prior written
specific approval by the CITY.
I. Construction Contractor Insurance Requirements:
a Workers Compensation Insurance - on behalf of all employees who are to
provide a service under this contract, as required under Florida Laws Chapter 440
and Employers Liability of limits no less than:
$100,000 each accident
$500,000 disease - policy limit
$100,000 disease - each employee
b. Commercial General Liability - including but not limited to bodily injury, property
damage, contractual, products and completed operations, and personal injury
with limits of not less than $1,000,000 combined single limit per occurrence.
c. Automobile Liability - bodily injury and property damage including all vehicles
owned, leased, hired and non -owned with limits of not less than $1,000,000
combined single limit covering all work performed under the Contract.
d. Umbrella Liability - with limits of not less than $1,000,000 per occurrence covering
all work performed under this Contract.
e. Builders Risk - when applicable, a special form coverage shall include, but not be
limited to:
(a) Storage and transport of materials, equipment, supplies of any kind
whatsoever to be used on or incidental to the project.
(b) Theft coverage
(c) Waiver of Occupancy Clause endorsement, which will enable the
COUNTY to occupy the facility under construction /renovation during
such activity.
(d) Limits of insurance to equal 100% of the insurable completed
contract amount of such addition(s), building(s) or structure(s),
on an agreed amount /replacement cost basis.
(e) Maximum Deductible clause of $10,000 each claim.
f. Hazardous Materials - For the purpose of this section: the term "hazardous
materials" includes all materials and substances which are now designated or
defined as hazardous by Florida or Federal law or by the rules or regulations of
Florida or any Federal Agency. If work being performed involves hazardous
materials, the need to procure and maintain any or all of the following coverage
will be addressed in an addendum. However if hazardous materials are identified
while carrying out this Contract, no further work is to be performed in the area of
the hazardous material until the Risk Management Division has been consulted as
to the potential need to procure and maintain any or all of the following
coverage:
(a) Contractors Pollution Liability - for sudden and gradual occurrences and
in an amount no less than $1,000,000 per claim and $1,000,000 in the
aggregate, arising out of the work performed under this Contract
including, but not limited to all hazardous materials identified under the
Contract.
(b) Asbestos Liability - for sudden and gradual occurrences and in an
amount no less than $1,000,000 per claim and $1,000,000 in the
aggregate arising out of work performed under this Contract.
(c) When applicable, the Contractor shall designate the disposal site and
furnish a Certificate of Insurance from the Disposal Facility for
Environmental Impairment Liability insurance covering liability for sudden
and accidental occurrences in an amount not less than $3,000,000 per
claim and $3,000,000 in the aggregate and shall include liability for non -
sudden occurrences in an amount not less than $6,000,000 per claim
and $6,000,000 in the aggregate.
(d) When applicable, the Contractor shall designate the hauler and furnish
a Certificate of Insurance from the hauler for Automobile Liability
insurance with Endorsement MCS90 for liability arising out of the
transportation of hazardous materials with an amount not less than
$1,000,000 annual aggregate and provide valid EPA identification #.
(e) Certificates of Insurance shall clearly state the hazardous material
exposure work being performed under the Contract.
2. NON - PROFIT DEVELOPER'S Insurance Requirements:
a. NON - PROFIT DEVELOPER must carry liability and hazards /all risks property
insurance on all properties
b. Insurance requirements itemized in this section required by NON - PROFIT
DEVELOPER shall be provided by or in behalf of all subcontractors to cover their
operations performed. The NON- PROFIT DEVELOPER shall be held responsible for
any modifications, deviations, or omissions in these insurance requirements as
they apply to subcontractors.
3. Each insurance policy required by this Contract shall:
a. Apply separately to each insured against whom claim is made and suit is
brought, except with respect to the limits of the insurer's liability.
b. Be endorsed to state that coverage shall not be suspended, voided, or canceled
by either party, reduced in coverage or in limits except after 30 days prior written
notice by certified mail, return receipt requested, has been given to the City of
Boynton Beach's Risk Management Division.
4. The City of Boynton Beach shall retain the right at any time to review coverage, form,
and amount of insurance.
5. The procuring of such required policy or policies of insurance shall not be construed
to limit contractor's liability nor to fulfill the indemnification provisions and
requirements of this Contract. Notwithstanding said policy or policies of insurance,
NON - PROFIT DEVELOPER shall be obligated for the full and total amount of any
damages, injury or loss caused by negligence or neglect connected with this
Contract.
6 The NON- PROFIT DEVELOPER shall be solely responsible for payment of all premiums
for insurance contributing to the satisfaction of this Contract and shall be solely
responsible for the payment of all deductibles to which such policies are subject,
whether or not The City of Boynton Beach is an insured under the policy.
7 Claims made policies will be accepted for professional and hazardous materials
liability coverage and such other risks as are authorized by the Risk Management
Division of the CITY. All such policies contributing to the satisfaction of the insurance
requirements herein shall have an extended reporting period option or automatic
coverage of not less than two years. If provided an option, the NON - PROFIT
DEVELOPER agrees to purchase the extended reporting period on cancellation or
termination unless a new policy is effected with a retroactive date, including at least
the last policy year.
8. All policies required herein, unless specific approval is given by the CITY, are to be
written on an occurrence basis, shall name The City of Boynton Beach, its
Commissioners, Officers and employees as additional insured's as their interest may
appear under this Contract, and the insurer(s) shall agree to waive all rights of
subrogation against the CITY, its Commissioners, Officer, Agents, Officials, Employees
or Volunteers.
a. Certificates of Insurance - Certificates of Insurance evidencing claims made or
occurrence form coverage and conditions to this Contract, as well as the CITY'S
contract number and description of work, are to be furnished to the CITY'S Risk
Management Division prior to commencement of work and within 15 days of
expiration of the insurance contract when applicable. All insurance certificates
shall be received and approved by the CITY'S Risk Management Division before
the NON - PROFIT DEVELOPER will be allowed to commence or continue work.
b. Notice of Accident (occurrence) and notice of claim shall be given to the
insurance company and the CITY'S Risk Management Division as soon as
practicable after notice to the insured of any incident (occurrence) or claim.
c. Liability of NON - PROFIT DEVELOPER- Pursuant to F.S.S.725.06(2), the NON- PROFIT
DEVELOPER shall indemnify and hold harmless the CITY, its Officers and Employees
from liabilities, damages, losses, and costs, including but not limited to,
reasonable attorney's fees to the extent caused by the negligence, recklessness
or intentional wrongful conduct of the Contractor and persons employed or
utilized by the NON - PROFIT DEVELOPER in the performance of the contract.
Exhibit D
PALM BEACH COUNTY INCOME GUIDELINES
2012 MEDIAN = $64,100
New Income Limits are published by HUD on a yearly basis, to reflect changes in area
income and the NON- PROFIT DEVELOPER(s) must abide by these annual changes.
1 2 3 4 5 6 7 8
person persons persons persons persons persons persons persons
Extremely
Low -
Income $15,200 $17,400 $19,550 $21,700 $23,450 $25,200 $26,950 $28,650
30%
Median
Very Low -
Income $25,350 $28,950 $32,550 $36,150 $39,050 $41,950 $44,850 $47,750
50%
Median
Low -
Income $40,550 $46,350 $52,150 $57,900 $62,550 $67,200 $71,800 $76,450
80%
Median
Moderate
Income $60,840 $69,480 $78,120 $86,760 $93,750 $100,680 $107,640 $114,600
120%
Median