HomeMy WebLinkAboutC2011-245 - 6/28/2011 - NAFY10 HOME FUNDING AGREEMENT
Nueces County Community Action Agency
STATE OF TEXAS §
COUNTY OF NUECES §
KNOW ALL BY THESE PRESENTS:
SECTION 1. PARTIES TO AGREEMENT
(A) This agreement ( "Agreement ") is made and entered into by and between the Cor-
pus Christi Community Improvement Corporation, a nonprofit corporation organized
under the laws of the State of Texas ( "CCCIC "), and the Nueces County Community
Action Agency, a nonprofit corporation organized under the laws of the State of Texas
( "NCCAA ").
(B) The parties have severally and collectively agreed, and by the execution of this
Agreement are bound, to the mutual obligations and to the performance and accom-
plishment of the tasks described in this Agreement.
SECTION 2. AGREEMENT PERIOD
This Agreement commences on the date of execution by the CCCIC and terminates on
February 28, 2012, unless otherwise specifically provided by the terms of this
Agreement.
SECTION 3. GRANT FUNDS
(A) The CCCIC agrees to grant NCCAA up to $300,000 of federal HOME funds subject
to the conditions in this Agreement. All funds not expended by the ending date of this
Agreement remain the property of the CCCIC.
(B) NCCAA shall execute a covenant to bind the property for a period of fifteen (15)
years ( "Covenant of Affordability "), the terms of which are set out in this Agreement and
in the sample which is attached to this Agreement as Exhibit A. The fully- executed
Covenant of Affordability will then replace the sample Exhibit A provided with this
Agreement, the text of the executed Covenant of Affordability is then, by agreement of
the parties, incorporated in this document by reference, and the new Exhibit A will be
recorded in the official deed records of Nueces County. The binding terms of the
recorded Covenant of Affordability will be released upon NCCAA's completion of the
terms and provisions contained in this Agreement.
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06/28/11
NCCAA INDEXED
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SECTION 4. NCCAA'S PERFORMANCE
(A) Grant proceeds in the amount of $122,156 must be used by NCCAA for the
acquisition of property located at 3609 Crestbrook Court, Corpus Christi, with the legal
description of Lot 38, Block 10, Carolyn Heights Unit 7, an addition of the City of Corpus
Christi, Nueces County, Texas ( "Project "). The remainder of the grant funding must be
used toward renovation costs necessary to rehabilitate the Project.
(B) NCCAA, in consideration of being granted the funding, agrees to continue to
operate this Project to provide rental housing for low and moderate income families for
the length of time applicable under the Covenant of Affordability. This provision
survives the expiration of this Agreement.
(C) In this Agreement, low and moderate income families are as defined in accordance
with 24 CFR 92.2 and calculated based on 24 CFR 92.203(b)(1), ( "Housing "), as de-
scribed in the preliminary budget and construction schedule, which is attached to this
Agreement as Exhibit B and which is incorporated in this Agreement by reference as if
fully set out in this Agreement ( "Budget and Construction Schedule "), if applicable to this
Project.
(D) NCCAA will administer the Project in accordance with all federal laws, rules, and
regulations including, but not limited to, the HOME Investment Partnerships Act at Title
II of the Cranston - Gonzalez National Affordable Housing Act, as amended, 42 U.S.C.
12701, et seq., and implementing federal regulations contained in 24 CFR Part 92; the
HOME Program Guidelines and Application Package; and Exhibit C, entitled "Other
Federal Requirements," which is attached to this Agreement, the contents of the exhibit
being incorporated in this Agreement by reference as if fully set out herein.
(E) NCCAA agrees to acknowledge the sponsorship of the CCCIC at any event
promoting the project or any other project sponsor.
(F) NCCAA shall perform all activities in accordance with the terms of the assurances,
certifications, and all other statements made by NCCAA in its application for the Project
funded under this Agreement; and with all other terms, provisions, and requirements set
forth in this Agreement.
SECTION 5. CCCIVS OBLIGATIONS
(A) In consideration of full and satisfactory performance of the activities referred to in
Section 4 of this Agreement, the CCCIC shall make payments under the grant for the
actual and reasonable costs incurred by NCCAA during the Agreement period for
performances rendered under this Agreement by NCCAA, subject to the limitations set
forth in this Section 5.
(B) It is expressly understood and agreed by the parties that the CCCIC's obligations
under this Section 5 are contingent upon the actual receipt of adequate federal funds to
meet the CCCIC's liabilities under this Agreement. If adequate funds are not available
to make payments under this Agreement, the CCCIC shall notify NCCAA in writing
within a reasonable time after such fact is determined, and the CCCIC shall then
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terminate this Agreement and will not be liable for failure to make payments to NCCAA
under this Agreement.
(C) The CCCIC shall not be liable to grant NCCAA money for any costs incurred by
NCCAA that are not allowable costs, as set forth in 24 CFR 92.206 and Section 7 of this
Agreement. Funds provided under this Agreement may not be used for payment of
prohibited activities as defined in 24 CFR 92.214.
(D) The CCCIC shall not be liable to grant NCCAA money for any costs incurred by the
NCCAA or any performances rendered by NCCAA which are not strictly in accordance
with the terms of this Agreement.
(E) The CCCIC shall not be liable to grant NCCAA money for costs incurred or
performances rendered by NCCAA before commencement of this Agreement or after
termination of this Agreement.
SECTION 6. DISBURSEMENT OF FUNDS
(A) The CCCIC will provide funds under this Agreement in accordance with the require-
ments of 24 CFR 92.502 and all other applicable federal regulations. NCCAA may not
request disbursement of funds under this Agreement until the funds are needed for
payment of eligible costs. All work related to a request for disbursement will be
inspected prior to disbursement of funds. Funds will be disbursed within ten (10)
working days following completion of an inspection resulting in a favorable review and
approval by representatives of the CCCIC.
(B) It is expressly understood and agreed by the parties that payments under this
Agreement are contingent upon NCCAA's full and satisfactory performance of its
obligations under this Agreement. The CCCIC reserves the right to recapture un-
expended funds provided under this Agreement in the event the CCCIC determines that
NCCAA will be unable to expend the funds, or any portion of the funds, within the
prescribed time as determined by representatives of the CCCIC.
SECTION 7. ADMINISTRATIVE REQUIREMENTS, COSTS PRINCIPLES, AND
PROGRAM INCOME
(A) NCCAA must comply with all federal regulations including, but not limited to,
applicable regulations under OMB Circular No. A -122 and the following requirements of
24 CFR Part 84: §§ 84.2, 84.5, 84.13 through 84.16; 84.26 through 84.28; 84.30;
84.31; 84.34 through 84.37; 84.40 through 84.48; 84.51; 84.60 through 84.62; 84.72;
and 84.73 pursuant to 24 CFR 92.505(b).
(B) NCCAA shall adhere to and comply with the administrative procedures and re-
porting requirements of the Performance Measurement System utilized by represen-
tatives of the CCCIC in order to facilitate the collection and reporting of HOME -based
funding data.
(C) NCCAA shall maintain records of the receipt, accrual, and disposition of all Project
and program income funds in the same manner as required for in Section 7(A) above
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for all funds provided under this Agreement. NCCAA shall provide reports of program
income as requested by representatives of the CCCIC and at the termination of this
Agreement.
(D) If applicable to the Project, all program income must be reinvested by NCCAA and
applied towards housing initiatives for low and moderate income individuals and families
including, but not limited to, acquisition and rehabilitation of rental or home ownership
projects.
SECTION 8. RETENTION AND ACCESSIBILITY OF RECORDS
(A) NCCAA must establish and maintain those records listed under 24 CFR 92.508 and
other records as may be determined by CCCIC.
(B) NCCAA shall give representatives of the CCCIC, the Comptroller of the United
States, or any other duly authorized representatives, access to and the right to examine
all books, accounts, records, reports, files and other papers, things, or property
belonging to or in use by NCCAA pertaining to this Agreement. Such rights to access
shall continue as long as the records are retained by NCCAA. NCCAA agrees to
maintain such records in an accessible location.
(C) All records pertinent to this Agreement shall be retained by NCCAA for five years
following the date of termination of this Agreement or of submission of the final close-
out report, whichever is later, with the following exceptions:
If any litigation, claim or audit is started before the expiration of the five -year '
period and extends beyond the five -year period, the records shall be main-
tained until all litigation, claims or audit findings involving the records have
been resolved.
2. Records relating to real property acquisition shall be retained for the period of
affordability required under 24 CFR 92.254 or 24 CFR 92.252 as applicable,
plus five years.
3. Records covering displacement and acquisitions must be retained for at least
five years after the date by which all persons displaced from the property and
all persons whose property is acquired for the project have received the final
payment to which they are entitled in accordance with 24 CFR 92.353.
(D) NCCAA shall include the substance of this Section 8 in all subcontracts.
(E) NCCAA must provide citizens, public agencies, and other interested parties with
reasonable access to this Agreement and other documents and records that directly
pertain to this Agreement, consistent with the Texas Public Information Act, Texas
Government Code, Chapter 552.
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SECTION 9. REPORTING REQUIREMENTS
(A) NCCAA shall submit to the CCCIC such reports on the operation and performance
of this Agreement as may be required by the CCCIC including, but not limited to, the
reports specified in this Section 9. NCCAA shall provide the CCCIC with all reports
necessary for the CCCIC's compliance with 24 CFR 92.509 and 24 CFR Part 92,
Subpart L.
(B) In addition to the limitations on liability otherwise specified in this Agreement, it is
expressly understood and agreed by the parties hereto that, if NCCAA fails to submit to
the CCCIC in a timely and satisfactory manner any report required by this Agreement,
the CCCIC may, at its sole option and in its sole discretion, withhold any or all payments
otherwise due or requested by NCCAA, upon notice in writing of its decision and the
reasons. Payments withheld pursuant to this section may be held by the CCCIC until
the delinquent obligations for which funds were withheld are fulfilled by NCCAA.
(C) Acknowledgment of Funding Source. NCCAA shall give credit to the CCCIC as the
Project funding source in all presentations, written documents, publicity and
advertisements regarding the Project.
SECTION 10. MONITORING
The CCCIC reserves the right to, from time to time, carry out field inspections to ensure
compliance with the requirements of this Agreement. NCCAA shall attend a
preconstruction meeting prior to the first construction draw. After each monitoring visit,
the CCCIC shall provide NCCAA with a written report of the monitor's findings. If the
monitoring reports note deficiencies in NCCAA's performances under the terms of this
Agreement, the monitoring report will include requirements for the timely correction of
the deficiencies by NCCAA. Failure by NCCAA to take the action(s) specified in the
monitoring report may be cause for suspension or termination of this Agreement, as
provided in Sections 18 and 19 of this Agreement.
SECTION 11. INDEPENDENT CONTRACTOR
It is expressly understood and agreed by the parties hereto that the CCCIC is con-
tracting with NCCAA as an independent contractor, and that NCCAA, as such, agrees
to hold the CCCIC harmless and to indemnify the CCCIC from and against any and all
claims, demands, and causes of action of every kind and character which may be
asserted by any third party occurring or in any way incident to, arising out of, or in
connection with the services to be performed by NCCAA under this Agreement.
SECTION 12. INDEMNIFICATION
(A) NCCAA agrees that it shall indemnify the CCCIC and its directors,
officers, employees, representatives, and agents (collectively,
"lndemnitees ") and hold the Indemnitees harmless of, from, and
against all claims, demands, actions, damages, losses, costs,
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liabilities, expenses, and judgments recovered from or asserted
against the lndemnitees on account of injury or damage to persons or
property to the extent any damage or injury may be incident to, arise
out of, or be caused, either proximately or remotely, wholly or in part,
by an act or omission, negligence or misconduct on the part of
NCCAA or any of its agents, servants, employees, contractors,
patrons, guests, licensees, or invitees entering upon the Project being
acquired pursuant to this Agreement or when any such injury or
damage is the result, proximate or remote, of the violation by NCCAA
or any of its agents, servants, employees, contractors, patrons,
guests, licensees, or invitees of any law, ordinance, or governmental
order of any kind, or when any injury or damage may in any other way
arise from or out of the acquisition, rehabilitation, modification, or
construction at the Project or out of the use or occupancy of the
Project by NCCAA, its agents, servants, employees, contractors,
patrons, guests, licensees, or invitees including, without limitation,
any damages or costs which may occur as a result of the acquisition
of the Project, design of the rehabilitation, modification, or
construction of the Project, the bidding process, actual rehabilitation,
modification, or construction of the Project, administration of the
construction contracts by NCCAA, the City of Corpus Christi, or the
CCCIC or its designee, failure of the Project prior to completion and
acceptance of the rehabilitation, modification, or construction by
NCCAA, failure of the rehabilitation, modification, or construction of
the Project to work as designed, failure of any contractor,
subcontractor, or manufacturer to honor its warranties, or failure of
NCCAA to maintain the Project
(B) These terms of indemnifications are effective upon the date of
final execution of this Agreement and whether the injury or damage
may result from the contributory negligence or concurrent negligence
of Indemnities, but not if the damage . or iniury may result from the
sole ne li ence gross ne li ence or willful misconduct of
lndemnitees.
(C) NCCAA covenants and agrees that, should the lndemnitees or any
of them individually be made a party to any litigation against NCCAA
or in any litigation commenced by any party relating to this
Agreement and the construction or rehabilitation of the Project
contemplated under this Agreement, NCCAA shall and will pay all
costs and expenses, including reasonable attorneys' fees and court
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costs incurred by or imposed upon the lndemnitees by virtue of any
such litigation.
(D) NCCAA, for and in consideration of the lndemnitees' participation
in this Agreement, hereby agrees and covenants that NCCAA will
never institute any suit or action at law against the lndemnitees
related to the performance by any party under this Agreement nor
institute, prosecute. or in any way aid in the institution or prosecution
of any claim, demand, action, or cause of action for damages, costs,
expenses, or compensation related to the performance by any party
under this Agreement, whether or not caused by the negligence of
lndemnitees.
SECTION 13. SUBCONTRACTS
(A) Except for subcontracts to which the federal labor standards requirements apply,
NCCAA may not subcontract for performances described in this Agreement without
obtaining CCCIC's prior written approval. NCCAA shall only subcontract for
performances described in this Agreement to which the federal labor standards
requirements apply after NCCAA has submitted a Subcontractor Eligibility form, as
specified by the CCCIC, for each such proposed subcontract, and NCCAA has obtained
the CCCIC's prior written approval, based on the information submitted, of NCCAA's
intent to enter into such proposed subcontract. NCCAA, in subcontracting for any
performances de- scribed in this Agreement, expressly understands that, in entering into
such subcontracts, the CCCIC is not in any manner liable to NCCAA's subcontractor(s).
(B) In no event may any provision of this Section 13, specifically, the requirements that
NCCAA obtain the CCCIC's prior written approval of a subcontractor's eligibility, be
construed as relieving NCCAA of the responsibility for ensuring that the performances
rendered under all subcontracts are rendered so as to comply with all of the terms of
this Agreement, as if such performances rendered were rendered by NCCAA. The
CCCIC's approval of a subcontractor's eligibility under this Section 13 does not
constitute adoption, ratification, or acceptance of NCCAA's or the subcontractor's
performance. The act of approval of a subcontractor's eligibility under this Section 13
does not waive any right of action which may exist or which may subsequently accrue to
the CCCIC under this Agreement. The CCCIC retains at all times the right to insist
upon NCCAA's full compliance with the terms of this Agreement.
(C) NCCAA shall comply with all applicable federal, state, and local laws, regulations,
and ordinances when making procurements under this Agreement.
SECTION 14. CONFLICT OF INTEREST
NCCAA shall ensure that no person who (1) is an employee, agent, consultant, officer
or elected or appointed official of NCCAA that receives funds and who exercises or has
exercised any functions or responsibilities with respect to activities assisted with funds
provided under this Agreement or (2) who is in a position to participate in a decision
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making process or gain inside information with regard to such activities may obtain a
personal or financial interest or benefit from a HOME assisted activity, or have an
interest in any agreement, subcontract, or contract (or the proceeds thereof) with
respect to a HOME assisted activity either for themselves or those with whom they have
family or business ties, during their tenure or for one year thereafter. NCCAA shall
ensure compliance with applicable provisions under 24 CFR 92.356 and OMB Circular
A -110 in the procurement of property and services.
SECTION 15. NONDISCRIMINATION
(A) NCCAA shall ensure that no person shall on the grounds of race, color, religion,
sex, age, handicap, familial status, or national origin be excluded from participation in,
be denied the benefits of, or be subjected to discrimination under any program or
activity funded in whole or in part with funds provided under this Agreement.
(B) In addition, funds provided under this Agreement must be made available in accor-
dance with the requirements of Section 3 of the Housing and Urban Development Act of
1968 (12 U.S.C. §170u) such that:
To the greatest extent feasible, opportunities for training and employment
arising in connection with the planning and carrying out of any Project as-
sisted with HOME funds provided under this Agreement be given to low -
income persons residing with the general local government area or metro-
politan area or non - metropolitan county in which the project is located; and
2. To the greatest extent feasible, agreements for work to be performed in
connection with any such Project be awarded to business concerns, in-
cluding, but not limited to, individuals or firms doing business in the field of
planning, consulting, design, architecture, building construction, rehabili-
tation, maintenance, or repair, which are located in or owned in substantial
part by persons residing in the same metropolitan area or non -
metropolitan county as the Project.
SECTION 16. LEGAL AUTHORITY
(A) NCCAA assures and guarantees that NCCAA possesses the legal authority to enter
into this Agreement, receive funds authorized by this Agreement, and to perform the
services NCCAA has obligated itself to perform under this Agreement.
(B) The person or persons signing and executing this Agreement on behalf of NCCAA,
or representing themselves as signing and executing this Agreement on behalf of
NCCAA, do hereby warrant and guarantee that he, she, or they have been duly
authorized by NCCAA to execute this Agreement on behalf of NCCAA and to validly
and legally bind NCCAA to all terms, performances, and provisions in this Agreement.
(C) NCCAA shall not employ, award contract to, or fund any person that has been
debarred, suspended, proposed for debarment, or placed on ineligibility status by the
U.S. Department of Housing and Urban Development. In addition, the CCCIC shall
have the right to suspend or terminate this Agreement if NCCAA is debarred,
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suspended, proposed for debarment, or is determined to be ineligible from participating
in the HOME Program.
SECTION 17. LITIGATION AND CLAIMS
NCCAA shall give the CCCIC immediate notice in writing of:
(i) any action, including any proceeding before an administrative agency
filed against NCCAA in connection with this Agreement; and
(ii) any claim against NCCAA, the cost and expense of which NCCAA may be
entitled to be reimbursed by the CCCIC. Except as otherwise directed by
the CCCIC, NCCAA shall furnish immediately to the CCCIC copies of all
pertinent papers received by NCCAA with respect to such action or claim.
SECTION 18. CHANGES AND AMENDMENTS
(A) Except as specifically provided otherwise in this Agreement, any alterations, addi-
tions, or deletions to the terms of this Agreement must be made by amendment to this
document in writing and executed by both parties to this Agreement. Modifications
which do not change the essential scope and purpose of this Agreement may be
approved on behalf of the CCCIC by the General Manager.
(B) It is understood and agreed by the parties to this Agreement that performances
under this Agreement must be rendered in accordance with the HOME Investment
Partnership Act of 1990 (the "Act "), 42 U.S.C. § §12701 et. seq., the regulations pro-
mulgated under the Act, the assurances and certifications made to the CCCIC by the
NCCAA, and the assurances and certifications made to the United States Department
of Housing and Urban Development by the CCCIC with regard to the operation of the
HOME Program. Based on these considerations, and in order to ensure the legal and
effective performance of this Agreement by both parties, it is agreed by the parties that
the performances under this Agreement are amended by the provisions of the HOME
Program, and any amendments thereto and may further be amended in the following
manner: The Department of Housing and Urban Development may from time to time
during the term of this Agreement establish, interpret, or clarify performance
requirements mandated under this Agreement. The policy directives promulgated in the
form of HOME Issuances shall have the effect of modifying the terms of this Agreement
and shall be binding upon the NCCAA, as if written and included in this Agreement; pro-
vided, however, that said policy directives and any amendments shall not alter the terms
of this Agreement so as to release the CCCIC of any obligation specified in Section 6 of
this Agreement to reimburse costs incurred by the NCCAA prior to the effective date of
the amendments or policy directives.
(C) Any alterations, additions, or deletions to the terms of this Agreement which are
required by changes in federal law or regulations are automatically incorporated into this
Agreement without written amendment and shall become effective on the date desig-
nated by the law or regulation. The CCCIC or NCCAA may require written changes or
amendments to this Agreement when any substantial alterations, additions, or deletions
to the terms of this Agreement are required by changes in federal law or regulations.
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(D) NCCAA has provided an estimated Project Budget and Construction Schedule
based upon the proposed construction listed above, which budget and schedule will be
attached to this Agreement and made a part of this Agreement for all purposes as
Exhibit B. Ten days prior to award of any funds pursuant to this Agreement, NCCAA
will provide a finalized Budget and Project Implementation Schedule, which includes a
schedule of costs of completion, and a schedule of completion for the various aspects of
construction of the Project which will be substituted for the then existing Exhibit B and
which will become Exhibit B of this Agreement for all purposes.
SECTION 19. SUSPENSION
In the event NCCAA fails to comply with any terms of this Agreement, the CCCIC may,
in accordance with 24CFR 85.43 and upon written notification to NCCAA, suspend this
Agreement in whole or in part and withhold further payments to NCCAA, and prohibit
NCCAA from incurring additional obligations of funds under this Agreement.
SECTION 20. TERMINATION
The CCCIC may terminate this Agreement, in whole or in part, in accordance with 24
CFR 85.43 and this Section 20. The CCCIC may terminate this Agreement for con-
venience in accordance with 24 CFR 85.44. In the event NCCAA materially fails, as
determined by the CCCIC, to comply with any term of this Agreement, whether stated in
a federal statute or regulation, an assurance, in a State plan or application, a notice of
award, or elsewhere, the CCCIC may take one or more of the following actions:
1. Temporary withhold cash payments pending correction of the deficiency
by NCCAA or take more severe enforcement action against NCCAA.
2. Disallow all or part of the cost of the activity or action not in compliance.
3. Wholly or partly suspend or terminate the current award for NCCAA's
Project.
4. Withhold further HOME awards from NCCAA.
5. Take other remedies that may be legally available.
Additionally, this Agreement may be cancelled upon a thirty -day notice of cancellation
upon mutual agreement of the parties, prior to the receipt of any portion of the funds by
NCCAA.
SECTION 21. AUDIT
(A) Unless otherwise directed by the CCCIC, NCCAA shall arrange for the perfor-
mance of an annual financial and compliance audit of funds received and performances
rendered under this Agreement, subject of the following conditions and limitations:
1. NCCAA shall have an audit made in accordance with 24 CFR 92.506,
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24 CFR Part 44. or OMB Circular A -133 for any of its fiscal years included
within the Agreement period specified in Section 2 of this Agreement in which
NCCAA receives more than $300,000 in federal financial assistance provided
by a federal agency in the form of grants, agreements, loans, loan guaran-
tees, property, cooperative agreements, interest subsidies, insurance or direct
appropriations, but federal financial assistance does not include direct federal
cash assistance to individuals. The term includes awards of federal financial
assistance received directly from federal agencies, or indirectly through other
units of state and local government.
2. At the option of NCCAA, each audit required by this section may cover either
NCCAA's entire operations or each department, agency, or establishment of
NCCAA which received, expended or otherwise administered federal funds.
3. Notwithstanding Section 5(a)(4), Section 5(a)(5), and Section 6 of this Agree-
ment, NCCAA may utilize funds budgeted under this Agreement to pay for
that portion of the cost of such audit services properly allocable to the activi-
ties funded by the CCCIC under this Agreement; provided, however, that the
CCCIC shall not make payment for the cost of such audit services until the
CCCIC has received such audit report from NCCAA.
4. Unless otherwise specifically authorized by the CCCIC in writing, NCCAA
shall submit the report of such audit to the CCCIC within thirty (30) days after
completion of the audit, but no later than one (1) year after the end of each
federal fiscal period included within the period of this Agreement. Audits
performed under subsection A of this Section 21 are subject to review and
resolution by the CCCIC or its authorized representative.
5. As part of its audit, NCCAA shall verify expenditures according to the Budget
and Construction Schedule attached and incorporated as Exhibit B.
(B) Notwithstanding subsection A of this Section 21, the CCCIC reserves the right to
conduct an annual financial and compliance audit of funds received and performances
rendered under this Agreement. NCCAA agrees to permit the CCCIC or its authorized
representative to audit NCCAA's records and to obtain any documents, materials, or
information necessary to facilitate such audit. Should an audit not be required by sub-
section A of this Section 21, NCCAA shall provide an annual audit to the CCCIC of
funds received in performance of this Agreement.
(C) NCCAA understands and agrees that it shall be liable to CCCIC for any costs
disallowed pursuant to financial and compliance audit(s) of funds received under this
Agreement. NCCAA further understands and agrees that reimbursement to the CCCIC
of such disallowed costs shall be paid by NCCAA from funds which were not provided
or otherwise made available to NCCAA under this Agreement.
(D) NCCAA shall take all necessary actions to facilitate the performance of such audit
or audits conducted pursuant to this Section 21 as the CCCIC may require of NCCAA.
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(E) All approved HOME audit reports shall be made available for public inspection
within 30 days after completion of the audit.
SECTION 22. ENVIRONMENTAL CLEARANCE REQUIREMENTS
(A) NCCAA understands agrees that, by the execution of this Agreement, it shall
assume the responsibilities for environmental review, decision making, and other
actions in accordance with and to the extent specified in 24 CFR 92.352 and 24 CFR,
Part 58. All environmental clearance requirements must be met and satisfied by
NCCAA prior to receipt of funding related to the acquisition of any real property.
SECTION 23. LABOR STANDARDS
All laborers and mechanics employed in the rehabilitation of a project assisted under
this Agreement that contains 12 or more dwelling units shall 'be paid wages at rates as
determined by the Secretary of Labor in accordance with the Davis -Bacon Act
(40 U.S.C. §276a -5), and contracts involving their employment shall be subject to the
applicable provisions of the Contract Work Hours and Safety Standards Act (40 U.S.C.
§ §327 -333). Construction contractors and subcontractors must comply with regulations
issued under these acts and with other federal laws and regulations pertaining to labor
standards and HUD Handbook 1344.1 (Federal Labor Standards Compliance in
Housing and Community Development Programs), as applicable.
SECTION 24. SPECIAL CONDITIONS
(A) Release of Funds. The CCCIC shall not release any funds for any costs incurred
by NCCAA under this Agreement until the CCCIC has received certification from
NCCAA that its fiscal control and fund accounting procedures are adequate to assure
the proper disbursal of and accounting for funds provided under this Agreement. The
CCCIC shall specify the content and form of such certification.
(B) Affordability Requirements. Funds provided under this Agreement must meet the
affordability requirements of the federal HOME rules for a period of fifteen (15) years
from the date of completion of the rehabilitation, such date of completion presently
unknown but anticipated to be no later than January 31, 2012. Furthermore, at least
20% of the units rehabilitated with funds received under this Agreement must meet
federal Section 8 Low Rent limits established by federal law; if applicable to this Project.
NCCAA agrees to repay all HOME funds governed by this Agreement if the Project fails
to comply or ceases to comply with the affordability requirements set forth in this
Agreement, in the Covenant of Affordability, and by federal law. The affordability
requirements must continue to be met throughout the term of the Agreement and are
binding upon the successors, assigns, and transferees of the Project as required by 24
CFR 92.254.
(C) Housing Quality Standards. NCCAA shall ensure that all parts of the Project
assisted with funds provided under this Agreement shall meet the requirements of 24
CFR 92.251.
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(D) Affirmative Marketing. If required by the CCCIC, NCCAA shall adopt and submit for
the CCCIC's approval affirmative marketing procedures and requirements not later than
30 days after the date this Agreement is executed. The affirmative marketing pro-
cedures and requirements shall include, but need not be limited to, those specified in 24
CFR 92.351. The CCCIC will assess the efforts of NCCAA during marketing of the units
by use of compliance certification or personal monitoring visit to the Project at least
annually. Where NCCAA fails to follow the affirmative marketing requirements,
corrective actions shall include extensive outreach efforts to appropriate contacts to
achieve the occupancy goals or other sanctions the CCCIC may deem necessary.
NCCAA must provide the CCCIC with an annual assessment of the affirmative mar-
keting program of the Project and its associated development. The assessment must
include:
Method used to inform the public and potential homebuyers about federal fair
housing laws and affirmative marketing policy. NCCAA's advertising vacant
units must include the equal housing opportunity logo or statement. Adver-
tising media must include newspaper, radio, television, brochures, leaflets, or
may involve simply a sign in a window. NCCAA may wish to use community
organizations, places of worship, employment centers, fair housing groups,
housing counseling agencies, social service centers or medical service
centers as resources for this outreach.
2. Records describing actions taken by NCCAA to affirmatively market units and
records to assess the results of these actions. NCCAA must maintain a file
containing all marketing efforts (i.e., copies of newspapers ads, memos of
phone calls, copies of letters, etc.) to be available for inspection at least
annually by the. CCCIC.
3. NCCAA shall solicit applications for vacant units from persons in the housing
market who are least likely to apply for the rehabilitated housing without
benefit of special outreach efforts. In general, persons who are not of the
race/ethnicity of the residents of the neighborhood in which the rehabilitated
building is location shall be considered those least likely to apply.
4. NCCAA shall maintain a listing of all homebuyers residing in each unit
through the end of the compliance period.
(F) Reversion of Assets. Upon termination of this Agreement, all funds remaining on
hand on the date of termination and all accounts receivable attributable to the use of
funds received under this Agreement revert to the CCCIC. NCCAA shall return these
assets to the CCCIC within seven (7) business days after the date of termination.
(G) Enforcement of Agreement. NCCAA shall provide the CCCIC with a legally en-
forceable Covenant of Affordability, meeting the requirements set out in the sample
Exhibit A of this Agreement., in order to enforce the affordability requirements of sub-
section B of this Section 24. NCCAA shall record the Covenant of Affordability, within
two business days of the final execution of this Agreement, in the real property records
of Nueces County (where the Project is located) and ensure the return of the original
Page 13 of 17
document, duly certified as to recordation by the appropriate county official, to the
CCCIC.
(H) Flood Insurance. Funds provided under this Agreement may not be used in con-
nection with acquisition or rehabilitation of a development located in an area identified
by the Federal Emergency Management Agency (FEMA) as having special flood
hazards, unless the locality in which the site is located is participating in the National
Flood Insurance Program.
(1) Displacement, Relocation, and Acquisition. NCCAA must ensure that it has taken all
reasonable steps to minimize the displacement of persons (individuals, families, and
business and nonprofit organizations) as a result of a project assisted with funds pro-
vided under this Agreement. NCCAA must comply with the applicable provisions of 24
CFR 92.353.
SECTION 25. INSURANCE
(A) Liability Insurance. NCCAA shall have in force throughout the term of this Agree-
ment comprehensive general liability insurance coverage with a personal /bodily injury
endorsement in the minimum amount of $500,000 per person /$1,000,000 per occur-
rence and $100,000 for property damage arising out of each occurrence. The compre-
hensive general liability shall include a Contractual Liability endorsement. The insur-
ance policy must name the CCCIC as an additional insured. A certificate to that effect
must be provided to the CCCIC at least ten (10) days prior to start of construction.
(B) Fire and Extended Coverage. NCCAA shall have in force throughout the term of
this Agreement fire and extended coverage insurance in an amount sufficient to cover
the replacement cost of the Project. The insurance policy shall name the CCCIC as
loss payees using a standard loss payee clause. A certificate to that effect must be
provided to the CCCIC prior to the commencement of construction or rehabilitation of
the Project.
(C) Notice to CCCIC. NCCAA shall require its insurance policies to provide that the
General Manager of the CCCIC shall be given thirty (30) days advance written notice by
the insurer prior to cancellation, nonrenewal, or material change of the insurance
policies required by this Section 25. The insurer utilized by NCCAA is subject to ap-
proval of the CCCIC. Failure to maintain such insurance will be cause for the CCCIC to
take control of the Project funds and will cancel any claim that NCCAA may have to the
use of the Project or the Project funds.
(D) NCCAA shall provide the CCCIC with certificates of insurance reflecting all the
stated coverages and shall, upon request of the CCCIC, promptly provide the CCCIC
with copies of all such insurance policies.
(E) Right to Re- evaluate and Adjust Limits. The CCCIC, through its General Manager
or his designee, retains the right to re- evaluate the insurance requirements and adjust
the coverage limits, up or down, upon thirty (30) days written notice to NCCAA. Insur-
ance coverage limits may not be adjusted more frequently than once per year.
Page 14 of 17
SECTION 26. ORAL AND WRITTEN AGREEMENTS
(A) All oral and written agreements between the parties to this Agreement, relating to
the subject matter of this Agreement, that were made prior to the execution of this
Agreement have been reduced to writing and are contained in this Agreement.
(B) The attachments enumerated and denominated below are made a part of this
Agreement and constitute promised performances by the NCCAA in accordance with
this Agreement:
1. Exhibit A, Sample Covenant of Affordability
2. Exhibit B, Budget and Construction Schedule
3. Exhibit C, Other Applicable Laws and Regulations
4. Exhibit D, Certifications
SECTION 27. JURISDICTION AND VENUE
By agreement of the parties, the laws of the State of Texas apply to any dispute arising
under this Agreement. For purposes of litigation pursuant to this Agreement, venue lies
in Corpus Christi, Nueces County, Texas, where this Agreement was entered into and
will be performed.
SECTION 28. COMPLIANCE WITH FEDERAL, STATE AND LOCAL LAWS
NCCAA shall comply with all federal, State, and local laws, statutes, ordinances, rules,
and regulations and with the orders and decrees of any court, administrative body, or
tribunal related to the activities and performances of NCCAA under this Agreement.
Upon request by the CCCIC, NCCAA shall furnish satisfactory proof of its compliance
with this section of the Agreement.
SECTION 29. REMEDIES
It is expressly understood and agreed by the parties to this Agreement that any right or
remedy provided for in this Section 29 or in any other provision of this Agreement will
not act to preclude the exercise of any other right or remedy provided under this
Agreement or under any provision of law, nor shall any action taken in the exercise of
any right or remedy be deemed a waiver of any other rights or remedies. Failure to
exercise any right or remedy under this Agreement does not constitute a waiver of the
right to exercise that or any other right or remedy at any time.
(EXECUTION PAGES FOLLOW)
Page 15 of 17
Executed in duplicate originals this day of , 2011.
ATTEST:
Armando Chapa
Secretary
Corpus Christi Community Improvement
Corporation
Aalp�j (!, ` - )
Ronald L. Ison
General Manager
ACKNOWLEDGMENTS
STATE OF TEXAS §
§ KNOW ALL BY THESE PRESENTS:
COUNTY OF NUECES §
This instrument was acknowledged before me on the. day of ��� 2011,
by Ronald L. Olson, General Manager of the Corpus Christi Community Improvement
Corporation, on behalf of the corporation.
Y P NOTARY PUBLIC, State Texas
: =VELAZQUEZ
we C.
.,�.��....,, ... ....... F��tll#Uttic.�,
MC MARY
Page 16 of 17
SUBRECIPIENT: Nueces County Community Action Agency
� '7.- j -, ( �
P Director Date
ACKNOWLEDGMENTS N°yh'lic
STATE OF
My .ip.A0129,2013
STATE OF TEXAS §
§ KNOW ALL BY THESE PRESENTS:
COUNTY OF NUECES §
This instrument was acknowledged before me on the __L day of duAL4 2011,
by _ JOP-1 A. + j nc, , as Executive Director of 1 ueces
County Community Action Agency, a Texas nonprofit corporation, on behalf of the
corporation.
NOTARY UBLIC, 9tate of Texas
Page 17 of 17
EXHIBIT A
DEED COVENANT
TO BIND PROPERTY
FOR PERIOD OF AFFORDABILITY
STATE OF TEXAS §
§ KNOW ALL BY THESE PRESENTS:
COUNTY OF NUECES §
Pursuant to an agreement entered into between the Oftus Chr� ti Community
Improvement Corporation ( "CCCIC ") and the Nueces Coun #y � !M ty Action Agency
("NCCAA"), executed in June, 2011, which agree ant is incored in this instrument
�,,
by reference ("Agreement"), NCCAA accepted fec j kfunds, in con "on � . the
United States Department of Housing and Urban Dev'opment's Ho" lnve `en#
Partnership Program ( "HOME Program "} ad ;` ed the CCCIC, fnErl` acquisition
k\
and rehabilitation of a four -unit residentiaWildin •,, „theft wing Rff6fy:
Lot 38, Block 10, Caft
City of Corpus Christi, N
the map or plat of recor
Nueces County, Texas,
address of9 Crestbr
Nueces Cou s
"Property ").
.Unite;; a subdivigiln the
u; exas, as sown by
in the. fficial Map Records of
nmonly ** own by its street
f locat On Corpus Christi
t ;, ferred to as the
Pursuant to 1h#1 ► ,s, condifior s, anc ' ±Giyenants contained within the Agreement,
NCCAA, in consid�, E b _Lrecewm he construction funding, agrees to bind the
5
Property nth the afFfdabili� u�re Fitts specified in Title 24, Part 92.252, of the
United Sees Code o ede ti s, for a period of not less than 15 years from
the dd5, of completion rehabilitation, such date of completion presently unknown
but antii.m ,n0 ter than January 31, 2012.
(EXECUTION PAGE FOLLOWS)
This instrument constitutes a covenant running with the land required by
federal law and binds NCCAA'S successors, heirs, assigns, and transferees, such
Property being subject to this instrument.
Signature
Pri
Da
ST
CC
Thi
by
CO
cor
4TS:
—, 2011,
Nueces
f of the
AF
ATTN: Community Development Administrator
Corpus Christ! Community Improvement Corporation
P. O. Box 9277
Corpus Christi, TX 78469-9277
T } f
Preliminary Budgpt & Construction Schedule
FY and Funding. X9.1 / BOMB
Project Name: Untal_— Paw*AcaukWon_CHDO
Organization: Nueces County CoptrRunit, ► Action Age
Total Project Cost: $325,00Q HOME award: $ 3A 00
Preliminary, Budget
Project Financial Resources: (list may be adjusted to meet your project)
(funds available to complete project) Amount
PrivateFunding Source ......................................... ............................... $
• FY 2010 HOME Funding ..................................... ............................... $ 300000
Other: (Specify) NCCAA Neighbor Works America ......................... $ 25.000
! kyaLlaWe f .......................... ............................... W5
Estimated Expenses: (list may be adjusted to meet your project)
' t d WMes to c=glete r t such Amount
-Property Acquisition ............................................. .......................... «.... 1 1 6
*Demo ( specify) ................................................................ ...............I...I........... a,,,,_
aA/E Professional Fees ........................................ . ................................. I.......... $- 5
•Construction (rehab) Cost ................................................ ............................... 17
C onstruction Related Contingencies ............................... ............................... $ 17.528
• Soft Cost (Phase I, Survey & Appraisal) ......................... ............................... I_- _5.032
Developers Fee 5% (admin, utilities, :& insurance related costs) ............... J
LotalPrgl Cost ............................................. ............................... $ -34M
N T : h "total funds avails 1e for thg projeSt "she 1 be a the "t to ro'e t cost."
Pre iminaa Qnstruction Schedule
(Project Dates for completion of key project phases)
Projected Dates
• Land/Property Acquisition ........................... ............................... E 2911
e Procurement of Architect/Engineer(AIE) services ......................
e Design/Bid Documents (speeili'ication paeket)completed.......... JULY 2011
a Advertisement dates: MUST BE for 1 day for 2 consecutive wks.. LILLY 2011
e Bid opening/award construction contract ........................... N- - LY 2011
e Pre - construction Meeting .................... . ........................ A GU 2011
e Construction/Rehab Start ..................... ........................ 2011
e Construction/Rehab 100% completion .................... LA2 2¢12
a
EXHIBIT °`C"
OTHER FEDERAL REQUIREMENTS
CHDO shall comply with all federal, state, and local laws, rules, and
regulations applicable to the activities and performances rendered by CHDO
under this Agreement including; but not limited to, the laws, rules, and the
regulations specified in Sections I through VI of this Exhibit C.
I. CIVIL RIGHTS
The Fair Housing Act (42 U.S.C. Sections 3601 -20) and
implementing regulations at 24 CFR Part 100; Executive Order
11063, as amended by Executive Order 12259 (3 CFR, 1958 -1963
Comp., p. 652 and 3 CFR, 1980 Comp., p. 307) (Equal Opportunity in
Housing) and implementing regulations at 24 CFR Part 107; and Title
VI of the Civil Rights Act of 1964 (42 U.S.C. 2000ed) (Nondiscrimi-
nation in Federally Assisted Programs) and implementing regulations
issued at 24 CFR Part 1;
• Executive Order 11063, as amended by Executive Order 12259, and
24 CFR Part 107, "Nondiscrimination and Equal Opportunity in
Housing under Ex- ecutive Order 10063." The failure or refusal of
CHDO to comply with the requirements of Executive Order 11063 or
24 CFR Part 107 shall be a proper basis for the imposition of
sanctions specified in 24 CFR Part 107.60;
• The prohibitions against discrimination on the basis of age under the
Age Discrimination Act of 1975 (42 U.S.C. Sections 6101-07) and
implementing regulations at 24 CFR Part 146, and the prohibitions
against discrimination against handicapped individuals under Section
504 of the Rehabilitation Act of 1973 (29 U.S.C. Sec. 794) and
implementing regulations at 24 CFR Part 8;
• The requirements of Executive Order 11246 (3 CFR, 1964 -65,
Comp., p. 339) (Equal Opportunity) and the implementing regulations
at 24 CFR Part 8;
The requirements of Executive Orders 11625 and 12432 (concerning
Minority Business Enterprise), and 12138 (concerning Women's
Business Enterprise consistent with HUD's responsibilities under
these Orders. Each applicant must make efforts to encourage the
use of minority and women's business enterprises in connection with
HOME funded activities. The CHDO must prescribe procedures
acceptable to the CCCIC to establish activities to ensure the
inclusion, to the maximum extent possible of minorities and women
and entities owned by minorities and women. The CHDO will be
required to identify contracts which have been bid by minority owned,
women owned, and/or small disadvantaged businesses;
• The Age Discrimination Act of 1975 (42 U.S.C. Sections 6101 et
seq.); and
Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. Sec. 794)
and "Nondiscrimination Based on Handicap in Federally- Assisted
Programs and Ac- tivities of the Department of Housing and Urban
Development," 24 CFR Part 8. By signing this Agreement, CHDO
understands and agrees that the activities funded herein shall be
operated in accordance with 24 CFR Part 8 and the Archi- tectural
Barriers Act of 1968 (42 U.S.C. Sec. 4151 et. seq.), including the use
of a telecommunications device for deaf persons (TDDs) or equally
effective communication system.
II. LEAD -BASED PAINT
• Title IV of the Lead -Based Paint Poisoning Prevention Act (42 U.S.C.
Sec. 4831).
Ill. ENVIRONMENTAL STANDARDS
• Environmental Review Procedures for Title I Community
Development Block Grant Programs, 24 CFR Part 58, as amended in
47 Fed. Reg. 15750 (April 12, 1982);
• National Environmental Policy Act of 1969 (42 U.S.C. Sec. 4321 et.
seq.) and 40 CFR Parts 1500 -1508;
• The National Historic Preservation Act of 1966 (16 U.S.C. Sec. 470
et. seq.) as amended; particularly Section 106 (16 U.S.C. Sec. 470f);
• Executive Order 11593, Protection and Enhancement of the Cultural
Environment, May 13 1971 (36 Fed. Reg. 8921), particularly Section
2 (c);
• The Reservoir Salvage Act of 1960 (16 U.S.C. Sec. 469 et seq.),
particularly Section 3 (16 U.S.C. Sec. 469a -1), as amended by the
Archeological and Historic Preservation Act of 1974;
!� f
! � y
• Flood Disaster Protection Act of 1973, (42 U.S.C. Sec. 4001 et. seq.)
as amended, particularly Sections 102(a) and 202(a) [(42 U.S.C.
Sec. 4012a (a) and Sec. 4106(a)];
• Executive Order 19988, Floodplain Management, May 24, 1977 (42
Fed. Reg. 26951), particularly Section 2(a);
• Executive Order 11990, Protection of Wetlands, May 24, 1977 (42
Fed. Reg. 26961), particularly Sections 2 and 5;
• The Coastal Zone Management Act of 1972 (16 U.S.C. Sec. 1451 et
seq.) as amended, particularly Sections 307(c) and (d) [(16 U.S.C.
Sections 1456 (c) and (d)];
• The Safe Drinking Water Act of 1974 (42 U.S.C. Sec. 201.300(f) et
seq.), and (21 U.S.C. Sec. 349) as amended, particularly Section
1424(e) [(42 U.S.C. Sections 300h- 303(e)];
• The Endangered Species Act of 1973, (16 U.S.C. Sec. 1531 et seq.)
as amended, particularly Section 7 (16 U.S.C. Sec. 1536);
• The Wild and Scenic Rivers Act of 1968, (16 U.S.C. Sec. 1271 et
seq.) as amended, particularly Sections 7(b) and (c) [(16 U.S.C.
Sections 1278(b) and (c)];
• The Clean Air Act (41 U.S.C. Sec. 7401 et seq.) as amended,
particularly Sections 176(c) and (d)); and
• Farmlands Protection and Policy Act of 1981, (7 U.S.C. Sec. 4201 et
seq.)
• 24 CFR Part 51, Environmental Criteria and Standards.
IV. RELOCATION AND ACQUISITION
• The Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970 (42 U.S.C. Sec. 4601 et. seq.), 49 CFR Part 24,
and 24 CFR Section 570.496a [(55 Fed. Reg. 29309 (July 18, 1990)].
EXHIBIT "D"
CERTIFICATION REGARDING LOBBYING
FOR AGREEMENTS, GRANTS, LOANS,
AND COOPERATIVE AGREEMENTS
The undersigned certifies to the best of its knowledge and belief, that:
1. 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 an agency, a member of congress, an officer or em-
ployee of congress, or an employee of a member of congress in connection with
the awarding of any federal agreement, the making of any federal grant, the mak-
ing of any federal loan, the entering into of any cooperative agreement, or modifi-
cation of any federal agreement, grant, loan, or cooperative agreement.
2. If any funds other than federal appropriated funds have been paid or will
be paid to any person for influencing or attempting to influence an officer or em-
ployee of any agency, a member of congress, an officer or employee of con-
gress, or an employee of a member of congress in connection with this federal
agreement, grant, loan, or cooperative agreement, the undersigned shall com-
plete and submit standard form — LLL, "Disclosure Form to Report Lobbying ", in
accordance with its instructions.
3.The undersigned shall require that the language of this certification be
included in the award documents for all subawards at all tiers (including sub -
agreements, subgrant, and agreements under grants, loans, and cooperative
agreements) and that CHDOs shall certify and disclose accordingly.
This certification is material representation of fact 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 31 U.S.C.
Section 1352. 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.
Nueces County Community Action Agency
nez, Executive
Date