2010-121 RES APPROVING AN AGREEMENT WITH PARIS LIVING FOR ADMINISTRATION OF THE HOMEBUYER ASSISTANCE PROGRAMRESOLUTION N0. _2010-121
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
APPROVING AN AGREEMENT WITH PARIS LIVING FOR ADMINISTRATION
OF THE HOMEBUYER ASSISTANT PROGRAM FUNDED THROUGH THE
TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS;
AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ALL
NECESSARY DOCUMENTS; MAKING OTHER FINDINGS AND PROVISIONS
RELATED TO THE SUBJECT; AND DECLARIIVG AN EFFECTIVE DATE.
WHEREAS, the City of Paris, Texas was awarded a grant from the Texas Department of
Housing and Community Affairs for Homebuyer Assistance through the HOME Investment
Partnership Program in the amount of approximately $312,000.00 (HOME Contract
#1001224); and,
WHEREAS, the City Council of the City of Paris did heretofore, advertise for proposals
for third-party administrators of the City's Homebuyer Assistance Program, which bids were
received until 5:00 p.m., Tuesday, the 30th day of November, 2010; and,
WHEREAS, the proposal submitted by Paris Living, Inc., has been selected by the City to
be the third-party administrator for said Homebuyer Assistance Program through the HOME
Investment Partnership Program, with an administration fee of 4% of project costs, totaling
$12,480.00; and,
WHEREAS, Paris Living, Inc. has also offered to administer the TDHCA Reservation
System for Single Family Homebuyer Assistance for the City of Paris; and,
WHEREAS, the Staff of the City of Paris recommends approval of the Agreement with
Paris Living, Inc., in the form attached hereto as Exhibit A;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS,
TEXAS:
Section 1. That the findings set out in the preamble of this resolution are hereby in
all things approved.
Section 2. That the proposal of Paris Living, Inc. for the administration of the
Homebuyer Assistance Program is hereby accepted and the Agreement for this administration
is hereby approved with the City of Paris meeting all of the terms and specifications included in
the Agreement attached hereto as Exhibit A.
Section 3. That the City Manager of the City of Paris is authorized for, on behalf
of, and in the name of the City to apply, negotiate and procure grants and loans from the
Texas Department of Housing and Community Affairs.
Section 3. That this resolution shall be effective from and after its date of passage.
PASSED AND APPROVED this 13th day of D eYY; 2
_
3
Will Biard, Mayor
ATTEST:
. .
a ice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McIlyar, ' ttorney
2800 Lamar Avenue, P.O. Box 26 ■ Paris, Texas 75460
903.739.9947 ■ fax 903.739.2104 ■ parisliving@sbcglobal.net
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December 13, 2010
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Mr. Kevin Carruth
City Manager
City of Paris
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P.O. Box 9037
Paris, Texas 75461
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Dear Mr. Carruth:
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Paris Living-A Community Development Corporation ("Paris Living" or the "Corporation") is
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pleased to be selected by the City of Paris (the "City") to administer the City's Homebuyer
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Assistance Program HOME Contract #1001224 funded by the Texas Department of Housing
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and CommunitY Affairs ("TDHCA") ~ the amount of $312,000, including administrative cost
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allowance as well as to manage the City's participation in TDHCA's Reservation System for
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Single Family Homebuyer Assistance Activities (hereinafter collectively "Programs")
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outlined in our proposal, Paris Living will administer the above referenced programs on behalf
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of the City in exchange for a fee equal to 4% of the total project costs, which is the
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administrative fee allowed by TDHCA, plus other project related soft costs allowable by
TDHCA through the HOME Program. For your convenience, I have listed some terms and
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conditions below and, if you concur, this letter will serve as our official Agreement (the
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Agreement").
~~ich"~'~` The City hereby engages Paris Living to provide, in general, the following:
(a) perform the overall administration of the Programs at the direction of the City and in
accordance with the approved program design as submitted in the grant applications;
(b) if requested, develop and implement a marketing effort for the Programs including
writing news releases, meeting with Realtors at the request of the participating lenders,
creating public service announcements for local Radio and Television;
(c) develop and disseminate information packets to, and train, participating lenders and
Realtors;
(d) work with each participating lender to process each borrower through to closing;
(e) prepare or have prepared all forms for set-up and draw of funds as well as closeout
forms on behalf of the City;
EXH1BIT
review and make recommendations designed to improve the Programs;
(g) assist the City during TDHCA monitoring visits and prepare any required response to
any monitoring findings;
(h) cause to be maintained a file on each property funded through the Programs for review
by TDHCA and/or HUD;
(i) prepare any and all invoices from Paris Living or its consultant Hunter & Hunter
Consultants, Inc. ("H&HCI") to each property closing as necessary;
(j) provide any and all other services as may be required by the City or by TDHCA and
that Paris Living has the ability and expertise to perform;
2. Specifically, the Scope of Work to be performed by Paris Living under this agreement
is as follows (Please note that some of the items listed below will be charged to each individual
loan as project related soft costs as is allowed under HUD regulations):
PROJECT MANAGEMENT
• Develop a record keeping system including the establishment of a filing system;
• Maintain the project and administrative files;
• Provide general advice and technical assistance to the City on implementation of the
Projects and regulatory matters;
• Furnish the City with the necessary forms and procedures required for implementation
of the Projects;
• Prepare and submit to TDHCA any and all documentation necessary for amending the
HOME contract;
• Prepare and submit Set-Up, Completion and other required reports;
• Serve as liaison for the City during any monitoring visit by TDHCA or HUD;
• Develop a Project affirmative marketing plan for the City;
• Conduct all necessary Lender/Realtor training sessions;
• Review all files received from lenders to ensure that the applicant and house qualifies
for the program;
• Assist the City in acquiring the services of independent inspectors and to ensure that a11
houses in the program pass required inspections;
• Assist the City with acquisition of homebuyer training;
• Assist the City with the completion of second lien documents;
• Maintain all project files in a reasonable and logical order;
• Manage dispute resolution as required.
FINANCIAL MANAGEMENT
• Assist the City in proving its ability to manage the grant funds to the state's audit
division;
• Assist the City, if requested, in establishing and/or maintaining a bank account (direct
deposit account) and/or separate local bank account, journals and ledgers;
• Assist the City in responding to single audit report requests from TDHCA;
• Prepare all fund reimbursements on behalf of the City;
• Review any invoices received for payment and file back-up documentation;
• Provide general advice and technical assistance to City Council, staff and consultants
on implementation of the Project and regulatory matters.
ENVIRONMENTAL
• Prepare the administrative environmental documents for City signature;
• Prepare the Homebuyer Assistance Environmental Checklist for each property;
• Ensure that all lenders disseminate lead base paint information to prospective
borrowers;
• Ensure that all lead base paint certification and acknowledgments are signed and filed
in each individual project file;
• Ensure that an environmental file is created and maintained for the Program.
FAIR HOUSING/EQUAL OPPORTUNITY
Ensure that all marketing materials prepared include affirmative marketing/equal
opportunity statements and logos;
Maintain documentation of all program beneficiaries by ethnicity and gender.
CLIENT INTAKE QUALIFICATION AND INTAKE
• Meet with each prospective borrower and help them fill out the application for
assistance;
• Review each applicants financial information to ensure they qualify for the assistance to
be provided;
• Assist each applicant in completing all the forms required for assistance
• Collect applicant information regarding income and employment to be included in the
project files;
• Clarify and resolve any issues related to the application intake process;
• Prepare notifications to sellers of properties to be purchased by qualified applicants;
• Prepare approval letters to the applicants for City staff signature;
• Perform any other necessary activities to ensure an effective application process.
AUDIT/CLOSE-OUT PROCEDURES
• Prepare the final completion report and Certification of Completion for filing with
TDHCA;
• Assist the Corporation in resolving any monitoring and audit findings;
• Assist the Corporation in resolving any third party claims;
• Provide City Auditor with HOME audit guidelines.
3. In connection with Paris Living's activities on the City's behalf, the City will cooperate
with Paris Living; furnish or cause to be furnished to Paris Living all information and data
concerning the City and the City's project(s) which Paris Living reasonably requests; and
provide Paris Living with reasonable access to its officers and appointed staff.
The City acknowledges and understands that while Paris Living or its consultant(s) will be
administering the Program on the City's behalf, that this service does not, from the perspective
of TDHCA, relieve the City from any ultimate responsibiliry for the appropriate administration
of the Program.
4. In consideration of services provided pursuant to this agreement, the City agrees to pay
or cause to be paid to Paris Living an administrative fee, in an amount equal to 4% of all
project funds expended. In addition, Paris Living will receive a potential additional amount, to
be paid at each loan closing, to defray costs associated with provision of application intake,
document preparation, environmental clearances, homebuyer counseling, home inspections, ar
other project specific services necessary to enable an individual property to close (presuming
that Paris Living or one of its consultant(s) performs that actual service). Paris Living agrees
that its fees will not exceed amounts allowable as costs that can be charged against the
administrative or project related soft costs of the Program or against third party participants.
Further it is understood that while the administrative costs will be charged for accomplishing
certain administrative tasks, that TDHCA requires that any administrative draw processed to
TDHCA not exceed the percentage of projects completed and drawn. Therefore, Paris Living
will bill the City and prepare subsequent documentation for reimbursement from TDHCA to
the City based upon the following general activity categories and per the following milestones:
[NOTE: the following milestones are based upon 15 units to be completed as specified in
the contract between the City of Paris and TDHCA. If that contract should be amended
to increase or decrease the number of units to be completed, the billing milestones will be
adjusted proportionately.]
ADMINISTRATIVE FEES
AMOIJNT
% OF TOTAL
ACTNITY*
ALLOWED
CONTRACT FEE
1.
General Management and Oversight of contract
$7
750
64
58%
2.
Information Services
,
$3,000
.
25.00%
3.
Affirmative Marketing
$ 200
1.67%
4.
Record Keeping
$ 800
6.67%
5.
Financial Management
$ 200
1.67%
6.
Administrative Environmental
$ 50
0.41 %
TOT
AL:
100.00%
% OF
BILLING MILESTONES** CONTRACT FEE
1. 2°d
home loan completed and reimbursed by TDHCA
10%
2. 5"'
home loan completed and reimbursed by TDHCA
20%
3. 10`h
home loan completed and reimbursed by TDHCA
34%
4. 13`"
home loan completed and reimbursed by TDHCA
23%
5. 15th
(or last) home completed and reimbursed by TDHCA
13%
TOTAL:
15 home loans completed
100%**
*these categories reflect work activity for managing the homebuyer program in general.
Activities and wark associated with individual loans and projects will be billed to the City at
each loan closing as project related soft costs. See below.
**If the total contract is not completed the total administrative fees charged to the City and
subsequently to TDHCA for reimbursement under the Administrative fee portion of the
contract with the City will be in an amount that is the same percentage as the total number of
loans completed (as per the IlUD rules). UNDER THE RESERVATION SYSTEM, THE
ADMINISTRATIVE FEE (4% OF THE HARD COSTS EXPENDED, MAXIMUN OF $800
PER LOAN) WILL BE BILLED TO TDHCA UPON THE CLOSING OF EACH LOAN
PROCESSED.
SOFT COST FEES PER LOAN CLOSED
Soft Costs are fees charged to each down payment assistance loan for work activities
preparatory to closing. Soft costs are paid outside of closing. Soft costs may vary by loan
closing and applicant. Therefore the following list of fees is the maximum that can be charged
to each loan for soft costs. However, it is agreed that Paris Living will not charge more than
$1,800 in total soft cost fees to each loan assisted. iJNDER THE RESERVATION SYSTEM,
THE SOFT COST MAXIMUMS FOR EACH ITEM WILL REMAIN THE SAME, EXCEPT
THAT PARIS LIVING WILL NOT CHARGE MORE THAN $1,500 IN TOTAL SOFT
COSTS TO EACH LOAN ASSISTED.
MAXMIUM
ACTIVITY
FEE
1.
Application Intake and Processing
$ 600
2.
Preparation of Loan Documents
100
3.
Site Environmental Clearance
400
4.
Project Document Preparation
100
5.
Property Inspection
350
6.
Schedule of Values
100
7.
Credit Report
50
8.
Homebuyer Counseling
300
TOT
AL ALLOWABLE BY TDHCA RULES:
$2,000
5. Further, the City understands and agrees that Paris Living may, upon written approval
from the City Manager of the City of Paris, subcontract portions of the administration of the
Program to other entities, with the understanding that Paris Living has the ultimate
responsibility and liability to the City for the administration of the Program.
6. Paris Living and the City agree that the period of this Agreement will be for a minimum
of three years from the agreement signing date or to coincide with the length and term of the
City's contract with TDHCA including any extensions to thereof, whichever period is longer.
7. It is expressly understood and agreed by the Parties to this Agreement, that Paris Living
is an independent contractor, and as such, Paris Living agrees to release, defend, indemnify and
hold the City of Paris, its elected officials, officers and employees harmless from and against
all damages, injuries, claims, property damage, losses, demands, suits, judgments and costs
including reasonable and necessary attorney's fees of any kind or character which arises from
or are related to this Agreement or the services to be provided by Paris Living, its consultants,
sub-consultants, employees or contractors under this Agreement.
8. Paris Living shall obtain a Directors and Officers liability insurance policy in the
minimum amount of One Million Dollars ($1,000,000) insuring Paris Living, its directors,
officers, employees, consultants and subcontractors against any claims, demands, lawsuits,
settlements or costs, including reasonable attorney's fees, arising from the negligent actions or
inactions or intentional wrongful actions committed by Paris Living or its directors, officers,
agents, employees, consultants and or subcontractors related to this Agreement or the services
to be provided pursuant to this Agreement.
9. Paris Living further agrees to administer the Homebuyer Assistance Program for the
City of Paris in strict compliance with the terms and requirements of the TDHCA HOME
PROGRAM, Home Contract No. 1001224 attached hereto and incorporated herein as Exhibit
«A
10. Paris Living further agrees that at any time during normal business hours and upon
forty-eight (48) hours notice, Paris Living shall make available to representatives of the City
for examination all of its records, and the records of any consultant or subcontractor hired or
retained by Paris Living to administer this Program, with respect to matters covered by this
Agreement, and will permit such representatives of the City to audit, examine, copy and make
excerpts or transcripts of such records, and to audit all contracts, invoices, payroll records,
personnel records or other data relating to matters covered by this Agreement or by the
TDHCA Homebuyer Assistance Program, all for a period of three (3) years following the date
of final settlement of this Agreement or final payment by the City under this Agreement,
whichever is later.
11. For the convenience of the parties hereto, any number of counterparts of this Agreement
may be executed by the parties hereto. Each such counterpart shall be, and shall be deemed to
be, an original instrument, but all counterparts taken together shall constitute one and the same
Agreement. This Agreement shall become effective upon the date last signed by the parties
listed below.
If the foregoing correctly sets forth our Agreement, please have both enclosed copies of this
letter signed in the spaces provided and return one copy to us at P.O. Box 26, Paris TX 75461.
If you have any questions or desire further comment please call me at (903) 784-0836 or our
consultant, Michael Hunter at (972) 771-5907.
Very truly yours,
Paris Living-A Community
Development Corporation
By:
Clifton Fendley, President
Date
City of Paris, Texas
By:
Kevin Carruth, City Manager Date
TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
HOME PROGRAM
HOME CONTRACT # 1001224
WITH
CITY OF PARIS,
A POLITICAL SUBDIVISION OF THE STATE OF TEXAS
CFDA 14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM
Awarding Federal Agency: U.S. Department of Housing and Urban Development
Award Number: M- SG-48-0100
Award Year: 2010
HUD Entity Type: State Recipient
This contract and agreement ("ContracY') in connection with a HOME Investment Partnerships
Program award is made and entered into by and between the TEXAS DEPARTMENT OF
HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas,
hereinafter referred to as "Department," and the CITY OF PARIS, A Political Subdivision of
the State of Texas ("Administrator"), herein collectively referred to as "Parties." For and in
consideration of the promises herein made, and the mutual benefits derived and to be derived, the
parties hereto agree and by execution hereof are bound to the mutual obligations and to the
performance and accomplishment of the tasks which are the substance of this contract.
SECTION 1. CONTRACT PERIOD
This contract shall be effective and commence on the date the Department's Executive Director
executes the contract and shall terminate TWENTY-FOUR (24) months from the effective date,
unless otherwise specifically provided herein ("Contract Period").
SECTION 2. ADMINISTRATOR PERFORMANCE
Administrator agrees to administer a Homebuyer Assistance award in accordance with the
HOME Investment Partnerships Act of 1990, 42 U.S.C. 12721-12839 (the "Act"); applicable
Federal and CPD Notices issued by HUD; implementing regulations, 24. C.F.R. Part 92; Tex.
Gov't Code Ann. Chapter 2306 (Vernon 2003), the HOME Program Rule, 10 TAC §53 et seq.
(the "2009 HOME Rules") adopted November 13, 2008, the HOME Program Manuals ("HOME
Manual") and the Application and Application Submission Procedures Manual. Administrator
agrees to perform all activities in accordance with the terms of the Performance Statement and
Budget attached hereto as Exhibit A; the Applicable Laws and Regulations attached hereto as
Exhibit B; the Certifications attached hereto 1s Exhibit C; a11 such Exhibits incorporated herein
for all relevant purposes; the assurances, certifications, and all other statements made by
Administrator in its application for the project funded under this contract; and with all other
terms, provisions, and requirements herein set forth.
EXHIBIT L
SECTION 3. DEPARTMENT OBLIGATIONS
A. Department shall be obligated to pay actual and reasonabte costs incurred by
Administrator, during the contract period, for performances rendered under this contract
by Administrator, subject to the limitations set forth in this Section 3:
l. It is expressly understood and agreed by the Parties hereto that Department's
obligations under this Section 3 are contingent upon the full and satisfactory
performance by Administrator of the activities herein described and the actual
receipt by Department of adequate federal funds to meet Department's liabilities
under this contract. If adequate funds are not available to make payments under
this contract, Department shall notify Administrator in writing within a reasonable
time after such fact is determined. In that event, this contract shall terminate and
neither Party shall have any further rights or obligations hereunder;
2. Department shall not be obligated to pay to Administrator for any costs incurred
by Administrator, which have been paid to Administrator or are subject to
payment to Administrator, or have been reimbursed to Administrator or are
subject to reimbursement to Administrator, by any source other than Department;
3. Department shall not be obligated to pay to Administrator for any costs incurred
by Administrator which are not allowable costs, as set forth in 24 C.F.R. Sections
92.205, 92.206, 92.207, 92.602(b)(1)-(3), any future rulings or determinations of
the U.S. Department of Housing and Urban Affairs, and Section 5 of this contract.
Funds provided under this contract may not be used for payment of prohibited
activities and costs as more particularly described in 24 C.F.R. Sections 92.214
and 92.602(b)(4) and/or Policies or Rules promulgated by the Department;
4. Department shall not be obligated to pay to Administrator for any costs incurred
by Administrator or for any performances rendered by Administrator which are
not strictly in accordance with the terms of this contract, including the terms of
Exhibit A, Exhibit B, and Exhibit C, of this contract; and
5. Department shall not be obligated to pay for costs incurred or performances
rendered by Administrator before the effective date of this contract, unless
otherwise specified, or after the temlination date of this contract and shall further
not be obligated to pay far any costs incurred within the contract period and not
billed to Department within sixty (60) days after the termination date of this
contract.
6. The certification of Contract Completion must be completed and submitted within
sixty (60) days after the contract expiration date.
B. Not withstanding any other provision of this contract to the contrary, the total of all
payinents and other obligations incurred by Department under this contract shall not
exceed the sum of THREE HUNDRED TWELVE THOUSAND AND NO/100
DOLLARS ($312,000.00), of which TWELVE THOUSAND AND NO/100
DOLLARS, ($12,000.00) is for Administrative expenses.
HOME Contract # 1001224
Page 2 of 21
SECTION 4. DISBURSEMENT OF FUNDS
A. Befare the effective date of the HOME Contract, the Contract Administrator may incur
and be reimbursed for travel costs, as provided for with Administrative funds, related to
mandatory implementation training required by the Department as a condition of
receiving a HOME award and Contract.
B. Administrator may not request disbursement of funds for eligible costs incurred under
this contract until the fiinds are needed for payment of eligible costs in accordance with
the requirements of 24 C.F.R. Part 92. Administrator shall submit to Department at its
offices in Travis County, Texas, a properly completed electronic request for fiinds and
support documentation as required and as specified by Department. Department shall
determine the reasonableness of each amount requested and shall not make disbursement
of any such payment until Department has reviewed and approved such request.
Administrator agrees to attend Implementation Training prior to the disbursement of any
funds under this contract and prior to the closing of any loan.
C. Department reserves the right to recapture funds provided under this contract and the loan
documents in the event Department determines that Administrator will be unable to
expend all funds awarded within the contract period and development period as defined
in the loan documents. Administrator acknowledges that in the event Administrator is
unable to perform in accordance with the Performance Statement and Budget (Exhibit A),
interim constntction loan documents, Administrator shall terminate this contract aild
surrender Administrator's rights to any remaining funds.
D. It is expressly understood and agreed by the Parties hereto that any right or remedy
provided for in this Section 4, or in any other provision of this contract, shall not preclude
the exercise of any other right or remedy Luider this contract or under any provision of
law. Nor shall any action taken in the exercise of any right or remedy be deeined a
waiver of any other right or remedy. Failure to exercise any right or remedy hereunder
shall ilot constitute a waiver of the right to exercise that or any other right or remedy at
any time.
E. For Homebuyer Assistance Acquisition Only, no funds may be requested for
disbursement if the commitment for funding is not made 60 days prior to the termination
date in Section 1 of this Contract. For Tenant Based Rental Assistance no funds may be
requested for disbursement if the commitment for funding is not made 180 days prior to
the termination date in Section 1 of this Contract. Due to loan closing requirements for
Owner-Occupied Housing Assistance and Homebuyer Assistance with
Rehabilitation/reconstruction/new construction, no funds may be requested for
disbursement if the loan closing does not occur 180 days prior the termination date in
Section 1 of this Contract.
SECTION 5. UNIFORM ADMINISTRATIVE REOUIREMENTS COST
PRINCIPLES AND PROGRAM INCOME
A. If Administrator is a governmental entity, Administrator shall comply with the
requirements of OMB Circular No. A-87; the requircments of 24 C.F.R. Part 85 as
applicable, and the Uniform Grant Management Standards, Chapter 783 Texas
Government Code, unless otherwise specified in this contract.
E-TOME Contract # I 001224
Page 3 of 21
B. If Administrator is a non-profit or for-profit organization, Administrator shall comply
with requirements of OMB Circular No. A-122 and the requirements of 24 C.F.R. Part 84
unless otherwise specified in this contract.
C. Administrator may not retain program income ar Community Housing Development
Organization income proceeds of any kind, however derived, under this contract,
including the retention of program income to fund other eligible HOME activities.
Administrator shall comply with the requirements of 24 C.F.R. §92.503 to account for
program income, repayments, and recaptured funds related to activities financed in whole
or in part with funds provided under this contract. Administrator shall provide reports of
program iucome as requested by Department. Program incorne derived under this
contract rnust be submitted to Department within ten (10) days of receipt. In any event,
program income received from a prior HOME contract must be disbursed before
Administrator requests additional funds from Department and the amount of requested
funds should be reduced by the program income used and noted in the request.
D. If Administrator is a corporation, Administrator shall maintain director ar officer liability
insurance coverage in an amount, not less than $1,000,000 that is siifficient to protect the
interests of Department in the event an actionable act or omission by a director or officer
of Administrator damages the Department's interests. Administrator shall provide
Department with certificates of insurance evidencing Administrator's current and
effective insurance coverage. Administrator agrees to notify the Department immediately
upoil receipt of notification of the termination, cancellation, expiration, or modification of
any required insurance coverage or policy endorsements. Administrator agrees to
suspend the performance of all work performed under this contract until the
Administrator satisfies the required coverage requirements, obtains the required policy
endorsements and delivers to Department certificates of insurance evidencing that such
coverage and policy endorsements are current and effective, and receives notification
from Department that the performance of work under this contract may recommence.
SECTION 6. RETENTION AND ACCESSIBILITY OF RECORDS
A. Administrator shall establish and maintain sufficient records, as specified by Department
and in accordance with 24 C.F.R. §92.508, including records that demonstrate that each
household assisted with funds provided under this contract is income eligible in
accordance with 24 C.F.R. §92.203.
B. Administrator agrees that Department, HUD, the Auditor of the State of TeYas, the
United States General Accounting Office, the Comptroller of the United States, or any of
their duly authorized representatives, shall have the right to access and to examine all
books, accounts, records, reports, files, and other papers or property belonging to or in
use by Administrator pertaining to this contract. Administrator agrees to maintain such
records at its regular place of business.
C. All records pertinent to this contract shall be retained by Administrator for a period of
five (5) years in accordance with 24 C.F.R. 592.508(c), except:
1. If any litigation, claim, negotiation, audit, monitoring, inspection or other actioil
has started before the expiration of the required record retention period records
HOME Contract # 1001224
Page 4 of 21
must be retained until completion of the action and resolution of all issues which
arise from it, or until the end of the required period, whichever is later.
2. Records covering displacement and acquisitions must be retained for five (5)
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 entitied in accordance with 24 C.F.R. Part 92.
3. For rental housing developments, records must be retained for five (5) years after
the project completion date; except that records of individual tenant income
verifications, project rents and project inspections must be retained for the most
recent five (5) year period, until five (5) years after the affordability period
terminates.
D. Administrator acknowledges that Department is subject to the Texas Public Information
Act and Administratar agrees that funds received from the Department are subject to the
Texas Public Information Act and the exceptions to disclosure as provided under the
Texas Public Infornlation Act.
E. Administrator shall include the substance of this Section 6 in aIl of its slibcontracts.
SECTION 7. REPORTING REOUIREMENTS
A. Administrator shall submit to Department such reports on the operation and performance
of this contract as may be required by Department, including but not limited to the reports
specified in this section. Administrator shall provide Department with all reports
necessary for Department's compliance with 24 C.F.R. Part 92.
B. In addition to the limitations on liability otherwise specified in this contract, it is
expressly understood and agreed by the Parties hereto that if Administrator fails to submit
to Department in a timely and satisfactory manner any report required by this contract or
the HOME Manual, Department may, at its sole option and in its sole discretion,
withhold any or all disbursements otherwise due or requested by Administrator
hereunder. If Department withholds such disbursements, it shall notify Administrator in
writing of ifs decision, the reasons for this action and the time period in which
Administrator must bring itself into compliance. Disbursements withheld pursuant to this
paragraph may be held by Department until such time as the Administrator is in
compliance with the requirements for which funds are being withheld. If Administrator
fails to perform as required within the stated cure period, Department may terminate this
contract and Administrator hereby agrees and acknowledges that upon termination,
Administrator's rights to any fiinds shall be terminated.
C. In addition to other reports, the Administrator shall provide reports to Deparhment
regarding program activities to evidence progress of performance in accordance with the
requirements of the Act, 2009 HOME Rules and contained in the Performance Statement
and Budget (Exhibit A).
HOME Contract #1001224
Page 5 of 21
SECTION 8. MONITORING
Department reserves the right to carry out field inspections and desk reviews to ensure
compliance with the requirements of this contract. After each monitoring visit or desk review,
Department shall provide Administrator with a written report of the monitor's findings. If the
monitoring reports note deficiencies in Administratar's performance tmder the terms of this
contract, the rnonitoring report shall include requirements for the timely correction of such
deficiencies by Administrator. Failure by Administrator to take the action specified in the
monitoring report may be cause for suspension, termination or repayment of fiinds, as provided
in Sections 16, 17, and 18 of this contract. Administrator agrees to attend training, as required by
Department, including Implementation Training, 15C Thursday Income Eligibiliry Training, and
other HOME Program workshops.
SECTION 9. INDEPENDENT CONTRACTOR
lt is expressly understood and agreed by the Parties hereto that Department is contracting with
Administrator as an independent contractor, and that Administrator, as such, agrees to hold
Department harmless and to the extent allowed by law indemnify Department 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 Administrator under this contract.
SECTION 10. SUBCONTRACTS
A. Administrator shall only subcontract for performance of activities described in this
contract after Administrator has obtained the appropriate documentation verifying the
subcontractor's eligibility, as specified by Department, for each such proposed
subcontract. Administrator, in subcontracting for any activities described in this contract,
expressly understands that in entering into such subcontracts, Department is in no way
liable to Administrator's subcontractor(s).
B. In no event shall any provision of this section constitute adoption, ratification, or
acceptance of Administrator's or subcontractor's perfornlance hereunder. Department
maintains the right to insist upon Administrator's full compliance with the terms of this
contract, and by the act of approval under this section, Department does not waive any
right of action which may exist or which may subsequently accrue to Department under
this contract.
C. Administrator shall comply with all applicable federal, state, and local laws, regulations,
and ordinances for making procurements under this contract. Administrator shall ensure
comp(iance with the requirements of 24 C.F.R. §584.40 - 84.48 (if Administrator is a
nonprofit organization) ar 24 C.F.R. §85.36 (if Administrator is a government entity), in
the procurement of property and services.
D. Administrator shall include langliage in any subcontract that provides the Department and
HUD the authority to directly review, monitor, and/or audit the operational and financial
HOME Contract # ( 001224
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performance and/or records of work performed under this Contract by any third-parry,
including subcontractors, contractors and consultant or service provider.
E. Administrator shall include in any subcontracts that failure to adequately perform under
tllis Contract may result in penalties up to and including Debarment from performing
additional work £or the Department.
SECTION 11. CONFLICT OF INTEREST
A. Administrator shall ensure that no employee, agent, consultant, officer ar elected or
appointed official of Administrator, who exercises or has exercised any functions ar
responsibilities with respect to activities assisted with funds provided under this contract
or who is in a position to participate in a decision 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 contract, subcontract, or
agreement (or the proceeds thereoo with respect to a HOME assisted activity either for
themselves or those witll whom they have family or business ties, duriilg their tenure or
for one year thereafter.
B. Administrator shall ensure that no employee, officer, or agent of Administrator shall
participate in the selection, or in the award or administration of a subcontract supported
by fiinds provided hereunder if a conflict of interest, real or apparent, would be involved.
Such conflict of interest would arise when: 1) the employee, officer, or agent; 2) any
member of his or her immediate family; 3) his or her partner; or 4) any organization
which employs, or is about to employ any of the above, has a financial or other interest in
the firm or person selected to perform the subcontract. Administrator shall comply with
24 CFR §92.356 (exceptions can only be waived by HUD).
C. No owner, developer or sponsor of HOME-assisted housing, including their officers,
employees, agents, consultants or elected or appointed officials may occupy a HOME-
assisted unit in a deveiopment (with the exceptions of (1) an individual living in a
HOME-assisted rental housing development where he/she is a project manager or a
maintenance worker in that development and (2) an individual receiving HOME funds to
acquire or rehabilitate his/her principal residence).
D. None of the funds provided under this contract may be paid to an entity or organization
that provides downpayment assistance if the activities of that entity or organization are
financed in whole or in part, directly or indirectly, by contributions, service fees, ar other
payments from the sellers of housing, whether or not made in conjunction with the sale of
specific housing acquired with fiinds provided under this contract.
E. Administrator shall include the substance of this Section 11 in all of its subcontracts.
SECTION 12. NONDISCRIMINATION AND FAITH-BASED ACTIVITIES
A. Administrator shall ensure that no person sha11, on the grounds of race, color, religion,
sex, handicap, familial status, or national origin, be excluded from participation ii1, be
denied the benefits of, ar be subjected to discrimination under, any program or activity
fimded in whole or in part with funds provided under this contract.
HOME Contract #1001224
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B. None of the performances rendered by Administrator under this contract shall involve,
and no portion of the funds received by Administrator under this contract shall be used in
support of any inherently religious activity, such as worship, re(igious instruction, or
proselytization. Administrator sha11 comply with the regulations promulgated by the U.S.
Department of Housing and Urban Development at 24 C.F.R. §92.257.
C. Administrator shall include the substance of this Section 12 in all of its subcontracts.
SECTION 13. LEGAL AUTHORITY
A. Administrator assures and guarantees Department that Administrator possesses the legal
authority to enter into this contract, to receive funds authorized by this contract, and to
perfoml the services Administrator has obligated itself to perform under this contract.
B. The person(s) signing and executing this contract on behalf of Administrator does hereby
warrant and guarantee that he is duly authorized by Administrator to execute this contract
on behalf of Adrninistrator and to validly and legally bind Administrator to all the terms,
perforrnances, and provisions of this contract.
C. Administrator shall not employ, award contracts to, or fund any person that has been
debarred, suspended, proposed for debarment, ar placed on ineligibility status by U. S.
Department of Housing and Urban Development and/or the Department. In addition,
Department shall have the right to suspend or terminate this contract if Administrator is
debarred, suspended, proposed for debarment, or is otherwise ineligible from
participating in the HOME Program by HUD or the Department. Administrator
acknowledges and agrees that this section specifically inciudes, but is not limited to,
consultants hired by Administrator to assist Adininistrator in any aspect relative to the
activities of this contract.
SECTION 14. LITIGATION AND CLAIMS
A. Administrator shall give Department immediate notice, in writing, of the occurrence of
airy of the following events:
1. any action, including any proceeding before an administrative agency, filed
against Administrator in connection with this contract; and
2. any claim against Administrator, the cost and expense of which Administrator
may be entitled to be reimbursed by Department.
B. Except as otherwise directed by Department, Administrator shall furnish immediately to
Department copies of all pertinent papers received by Administrator with respect to such
actioi7 or claim.
SECTION 15. CHANGES AND AMENDMENTS
A. EYCept as specifically provided otherwise in this contract, any cllanges, additions, or
deletions to the terms of this contract shall be in writing and executed by both parties to
this contract. An executed facsimile or electronic copy will be sufficient to evidence the
HOME Cotttract # I 001224
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Parties agreement to any amendment, revision or change to this contract. If any Party
returns this copy by facsimile machine or electronically, the signing party intends the
copy of its authorized signature printed by the receiving machine, or the electronic copy,
to be its ariginal signature.
B. It is understood and agreed by the Parties hereto that performance of all activities under
this contract must be rendered in accordance with the Act, the state and federal
regulations promulgated under the Act, the assurances and certifications made to
Department by Administrator, and the assurances and certifications made to the United
States Department of Housing and Urban Development by the State of Texas with regard
to the operation of the HOME Program. Further, the Department may issue guidance
which serves to interpret or clarify the performance requirements under this contract.
C. Any changes, additions, or deletions to the terms of this contract which are required by
changes in federal or state law, or regulations, are automatically incorporated into this
contract without the requirement of a written amendment hereto, and shall become
effective on the date designated by such law or regulation.
D. Ainendment requests must be submitted in writing by Administrator ninety days prior to
this contract's termination date, as specified in Section 1.
SECTION 16. SUSPENSION
In the event Administrator fails to comply with any term of this contract, Department may, upon
written notification to Administrator, suspend this contract in whole or in part, withhold filrther
disbursements to Administrator, and prohibit Administrator froin incurring additional obligations
for funds under this contract. Administratar acknowledges that it does not have a right to
suspension as a pre-requisite to termination.
SECTION 17. TERMINATION
A. Department may terminate tlus contract in whole or in part, in accordance with tllis
section. In the event Administratar fails to comply, in Department's sole discretion and
judgment, with any ternz of this contract, or any terni stated in a federal statute or
regulation, or with any assurance given to Department by Administrator, ar with any term
in a state plan, ar with Administrator's application, the notice of award, or elsewhere
Departineilt tnay take any of the following actions:
1. Temporarily withhold disbursements pending correction of the deficiency by
Administrator;
2. disallow all or part of the cost of the activity or action not in comp(iance;
3. suspend this contract upon written notification to Administrator of the deficiency
and the period within which Administrator must comply;
4. accept Administrator's faihire to comply or correct any deficiency within the time
period set forth in any written notice of suspeilsion as evidence of Administrator's
inability to perforni imder the terms of this contract, Administrator's intent to
terminate this contract and Administrator's agreement to surrender all rights to
remaining funds;
HOVfE Contract # 1001224
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5. withhold further HOME awards from Administrator, and/or affiliated Parties;
6. take more severe enforcement action against Administrator by taking any other
remedies that may be legally availabte to Department, as determined by
Department, to ensure compliance with the terms of this contract.
B. At the sole discretion of Department, if Administrator has not achieved substantial
progress within six (6) months of the effective date of this Contract or has failed to meet
any performance benchmark, this Contract may be terminated. Administrator may appeal
to have the Contract reinstated in accordance with 10 TAC § 1.7.
SECTION 18. AUDIT
A. In addition to the requirements of Section 6(B) of this contract, Administrator shall
submit to Department, within sixty (60) days after the end of each fiscal year, an Alidit
Certification Form as specified by Department far each fiscal year in which any months
of the Adrninistrator's fiscal year overlaps a month of the contract period. Unless
otherwise directed by Department, Administrator shall arrange for the performance of an
annual financial and compliance audit of funds received and perfonnances rendered
Linder this contract, subject to the following conditions and limitations:
1. Adrninistrator shall have an audit conducted in accordance with 24 C.F.R. §84.26
or §85.26, as applicable; OMB Circular A-133; and 31 U.S.C. 7501 for any of its
fiscal years included within the contract period specified in Section 1 of this
contract in which Administrator has expenses of more than $500,000 in federal
financial assistance provided by a federal agency in the form of grants, contracts,
loans, loan guarantees, property, cooperative agreements, interest subsidies,
insurance or direct appropriations, but does not include direct federal cash
assistance to individuals. The term federal financial assistance includes awards of
financial assistance received directly from federal agencies, or indirectly through
other units of State and local government.
2. At tlle option of Adininistratar, each audit required by this section may cover
Adrninistratar's entire operations or each department, agency, or establishment of
Administrator which received, expended, or otherwise administered federal fiinds.
3. Notwithstanding anything to the contrary in Section 3, Administrator may utilize
funds budgeted under this contract to pay for that portion of the cost of such audit
services properly allocable to the activities fiinded by Department tmder this
contract. Provided, however, Department shall not make payment far the cost of
such audit services until Department has received the audit report from
Administrator.
4. Unless otherwise specifically authorized by Department in writing, Administrator
shall submit two (2) copies of the repart of such audit to Departnlent within thirty
(30) days after completion of the audit, but iio later than nine (9) months after the
end of each fiscal periocl included within the period of this contract. Audits
performed under this section are subject to revicw and to direction oiz resolution
of findings by Departinent or its authorized representative.
HOME Contract # l 00 (324
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B. Notwithstanding anything in Section 18(A) to the contrary, Department reserves the right
to conduct an annual financial and compliance audit of funds received and performances
rendered under this contract. Administrator agrees to permit Department, or its
authorized representative, to audit Administrator's records and to obtain any documents,
materials, or infonnation necessary to facilitate such audit.
C. Administrator understands and agrees that it shall be liable to Department for aily costs
disallowed pursuant to financial and compliance audit(s) of funds received tinder this
contract. Administrator fiirther understands and agrees that reimbursement to
Department of such disallowed costs shall be paid by Administrator from funds which
were not provided or otherwise made available to Administrator under this contract.
D. Administrator shall take all necessary actions to facilitate the performance of such audit
or audits conducted pursuant to this section as Department may require of Administrator.
E. All approved HOME audit reports shall be made available for public inspection within
thirty (30) days after completion of the attdit.
SECTION 19. ENVIRONMENTAL CLEARANCE REQUIREMENTS
A. The environmental effects of each activity carried out with funds provided under this
contract must be assessed in accordance with the provisions of the HOME Manual,
National Environmental Policy Act of 1969 (NEPA) and the related activities listed in
HUD's implementing regulations at 24 C.F.R. Parts 50, 51, 55 and 58. Each such
activity must have an environmental review completed and support documentation
prepared complying with the National Environmental Policy Act of 1969 and regulations
at 24 C.F.R. Parts 50, 51, 55 and Part 58. No funds may be requested or committed to
an activity before the completion of the environmental review process, including the
requirements of 24 C.F.R. §58.6 and the Department has provided written
clearance.
B. If funds are provided under this contract to a"state recipient," the recipient is delegated
authority as the Responsible Entity (RE) and makes all environmental clearance
determinations. The Department assumes the role of HUD pursuant to 24 CFR Part 58,
"Subpart H- Release of Funds for Particular Projects" and is responsible far reviewing
and approving the Request for Release of Funds and granting the recipient the Authority
to Use Grant Funds.
C. A non-governinental entity is not delegated authority to become an RE and make
enviroumental deternlinations and therefore, shall assist Department in completing the
environmental review by providing all relevant documentation needed to perform an
environmental review, or carry out mitigating measures reqnired, or selecting an alternate
property for assistance.
D. Both state recipients and subrecipients or CHDOs must attend HOME training for
environmental assessment. The assessments must be satisfactory to Department. This
contract is conditional in nature and does not grant Administrator legal claim to any
HOME fiinds for a specific project or site until the environmental review process is
approved by Deparhnent. The agreement to provide filnds to the project is conditional on
Departnlent's or Administi-ator's determination to proceed with, modify or cancel the
project based on the results of a subsequent environmental review.
HOME Contract # I 001224
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E. Funds provided under this contract may not be used in connection with acquisition or
rehabilitation or new construction of housing 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 (NFIP) or less than a year has passed since FEMA notification regarding such
hazards and flood insurance is obtained as a condition of approval of the commitment.
Administrator must determine if the locality participates in the NFIP during the
preliminary stages of the environmenta( clearance process.
SECTION 20. AFFIRMATIVE MARKETING
Administrator shall adopt affirmative marketing procedures and requirements. The affirmative
marketing procedures and requirements shall include, but not be limited to those specified in 24
C.F.R. §92.351. The procedures and requirements shall be prepared in accordance with the
HOME Manual.
SECTION 21. LABOR STANDARDS
A. Every contract for the construction (rehabilitation or new construction) of housing that
includes 12 or more units assisted with HOME funds must contain a provision in
accordance with 24 C.F.R. §92.354. Contracts involving their employment shall be
subject to the provisions, as applicable, of the Contract Work Hours and Safety Standards
Act, 40 U.S.C. Sec. 328 to 334. 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 Federal Loan Standards
Compliance in Housing and Cominunitv Development Programs, as applicable.
B. Adininistrator, by execution of this Contract, hereby certifies that Administrator, or a
branch, division, or department of Administrator does not and will not knowingly employ
an undocumented worker, where "undocumented worker" means an individual who, at
the time of employment, is not lawfully admitted for permanent residence to the United
States or autharized tmder law to be employed in that manner in the United States. If,
after receiving a public subsidy, Administrator, or a branch, division, ar department of
Administrator is convicted of a violation under 8 U.S.C. § 1324(a)(f), Administrator shall
repay the amount of the public subsidy as stated under Section 3.8. of this Contract with
interest, at the rate of 5% per lnntml, not later than the 120t" day after the date the
Department notifies Administrator of the violation.
SECTION 22. SPECIAL CONDITIONS
A. Department shall not release any disbursements for any costs incurred by Administrator
tmder this contract umtil Department has received certification from Administratar that its
fiscal control and fiind accounting procedures are adequate to assure the proper disbursal
of, and accounting for, funds provided under this contract. Department shall specify the
content and form of such certification.
HOME Contract #I OO 1224
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B. A housing unit assisted with funds provided under this contract must meet the
affordability requirements of 24 C.F.R. §92,254(a) and (c) and 92.612(c). Administrator
is liable and agrees to repay an amount specified by Department for each housing unit
assisted with funds provided under this contract that fails to comply, or ceases to comply,
with the affordability requirements of this contract. If Administrator lends funds
provided under this contract to anyone, the resulting loan agreement, note, and mortgage
must provide that the affordability requirements must continue to be met throughout the
term of the loan and that the affardability requirements sha11 be binding upon the heirs,
successors, assignees, and transferees of Administrator. Department shall not release any
filnds for any costs incurred by Administrator tmder this contract until Department has
received from Administrator an executed, legally enforceable agreement from each
homeowner containing remedies adequate to enforce the affordability requirements of 24
C.F.R. §92.254, as applicable, with Administrator. Administrator shall record such
agreements in the real property records of the county in which the housing unit is located
and return the original documents, duly certified as to recordation by the appropriate
county official, to Department. Receipt of such certified recorded original agreernents by
Department is required prior to disbursement of any funds under this contract.
C. Upon termination of this contract, all funds remaining on hand on the date of termination,
and a11 accounts receivable attributable to the use of fiinds received under this contract
shall revert to Department. Administratar shall return these assets to Department within
seven (7) business days after the date of termination.
D. Any home demolished that cannot be completed within the contract period becomes the
responsibility of the Administrator for completion.
E. The Administrator shall include language in any subcontract that provides the
Department the ability to directly review, monitor, and/or audit the operational and
financial performance and/or records of wark performed under this Contract.
F. The Administrator shall include language in any subcontract that failure of
subcontractor/consultant to adequately perform under the contract may result in penalties
up to and including Debarment from performing additional work for the Department.
SECTION 23. ORAL AND WRITTEN AGREEMENTS
A. All aral and written agreemei7ts between the Parties to this contract relating to the subject
matter of this contract that were made prior to the execution of this contract have been
reduced to writing and are contained in this contract.
B. The attachments enumerated and denominated below are a part of this contract and
constitute promised performances under this contract:
1. Exhibit A, Performance Statement and Budget
Exhibit B, Applicable Laws and Regulations
Exhibit C, Certification Regarding Lobbying
SECTION 24. VENUE
For pulposes of litigation pursuant to this contract, venue shall lie in Travis County, Texas.
HOME Contract #1001224
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SECTION 25. COMPLIANCE WITH FEDERAL, STATE, AND LOCAL LAW
Administrator shall comply with all federal, state and local laws, statutes, ordinances, rules,
regulations, orders and decrees of any court or administrative body or tribunal related to the
activities and perfornlances of Administrator under this contract. Upon request by Department,
Administrator shall furnish satisfactory proof of its compliance therewith.
SECTION 26. CERTIFICATION REGARDING CERTAIN DISASTER RELIEF
CONTRACTS
The Department may not award a contract that includes proposed financial participation by a
person who, during the five-year period preceding the date of this Contract, has been convicted
of violating a federal law in connection with a contract awarded by the federal government for
relief, recovery, or reconstruction efforts as a result of Hurricane Rita, as defined by Section
39.459, Utilities Code, Hurricane Katrina, or any other disaster occurring after September 24,
2005; or assessed a penalty in a federal civil or administrative enforcement action in connection
with a contract awarded by the federal government for relief, recovery, or reconstruction efforts
as a result of Hurricane Rita, as defined by Section 39.459, Utilities Code, Hurricane Katrina, or
any other disaster occurring after September 24, 2005. By executing this Contract, the
Administrator hereby certifies that:
"Under Section 2261.053, Govemment Code, Administrator certifies that the individual or
business entity named in this Contract is not ineligible to receive the specified contract and
acknowledges that this contract may be terminated and payment withheld if this certification is
inaccurate."
WITNESS OUR HAND EFFECTIVE:
CITY OF PARIS,
A POLITICAL SUBDIVISION F THE STATE OF TEXAS
By:
Name: Kevin Carruth
Title: City Manager
Date: Q
HOME Contract #I001224
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THIS CONTRACT WAS APPROVED BY THE BOARD OF DIRECTORS ON JUNE 28,
2010, AND IS NOT EFFECTIVE UNLESS SIGNED BY THE EXECUTIVE DIRECTOR
OF THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, OR
HIS/HER AUTHORIZED DESIGNEE.
THIS CONTRACT IS APPROVED, ACCEPTED AND MADE EFFECTIVE ON
20 AND WILL TERMINATE ON
20 ON BEHALF OF:
TEXAS DEPARTMENT OF HOUSING AivD COMMUNITY AFFAIRS
By:
Michael Gerber, Executive Director
HOME Contract 9 100I234
Page 15 of 21
TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
HOIVIE CONTRACT # 1001224
EXHIBIT A
PERFORMANCE STATEMENT AND BUDGET
CITY OF PARI5,
A POLITICAL SUBDIVISION OF THE STATE OF TEXAS
Administrator shall carry out the following activities identified by this Exhibit A and in its
HOME Program Application Number 2009-0094.
SECTION I. HOMEBUYER ASSISTANCE PROGRAM
Administrator shall implement a Homebuyer Assistance Program- Acquisition Only in
accardance with 24 C.F.R. Part 92 and the applicable Texas statutes, and the State HOME
Program Rule at 10 Texas Administrative Code Chapter 53 (the "2009 HOME Rules"), adopted
November 13, 2008, utilizing THREE HUNDRED THOUSAND AND NO/100 DOLLARS
($300,000.00), in project funds and TWELVE THOUSAND AND NO/100 DOLLARS
($12,000.00), in administrative funds.
SECTION II. PERFORMANCE STATEMENT
Funds are awarded to the Administratar under the following terms from the Department:
1. Activity Description. Administrator shall use the fimds provided under this contract to
provide Homebuyer Assistance to a minimum of FOURTEEN (14) homebuyers. Each
homebuyer assisted must meet the definition of a first time homebuyer as defined in 24 CFR
Part 92.
2. Income Targeting: Households served under this Contract wil( meet the following Income
targeting requirements:
a. "Income" as used in this subsection shall mean the adjusted Income of an assisted
household that is calculated in accordance with 24 CFR Part 92 and 24 CFR Part 5 for the
purposes of determining the household's qualification for HOME Program fimds.
b. ZERO (0) of the FOURTEEN (14) assisted homebuyers shall have Incomes that are less
than or equal to thirty percent (30%) of the AMFI, as defined by HUD.
c. In addition to the number of assisted homebuyers that have Incomes less than or equal to
30% of the AMFI as required above, ZERO (0) of the FOURTEEN (14) assisted
homebuyers shall have Incomes that are less than ar equal to fifty percent (50%) of the
AMFI, as defined by HUD.
HOME Contract # 100 (224
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d. In addition to the number of assisted homebuyers that have Incomes less than or equal to
30°/o and 50% of the AMFI as required above, ZERO (0) of the FOURTEEN (14)
assisted homebuyers shall have Incomes that are less than or equal to sixty percent (60%)
of the AMFI, as defined by HUD.
e. In addition to the number of assisted homebuyers that have Incomes less than or equal to
30%, 50% and 60% of the AMFI as required above, FOURTEEN (14) of the
FOURTEEN (14) assisted homebuyers shall have Incomes that are less than or equal to
eighty percent (80%) of the AMFI, as defined by HUD.
£ Administrator may use the funds provided under this contract to provide assistance to
additional homebuyers once the ininimum of FOURTEEN (14) hoinebuyers have been
assisted provided that the additional homebuyers' Incomes are less than or equal to eighty
percent (80%) of the AMFI, as defined by HUD, and all other requirements are met.
3. Maximum Assistance. Administrator shall provide HOME Homebuyer Assistance in the
form of a 2nd or 3rd lien.
a. The maximum amount of assistance is the total of the downpayment and closing cost
assistance and soft costs provided to an eligible household. The total amount for
downpayment and closing costs assistance to an eligible household shall not exceed
Twenty Thousand and No/100 Dollars ($20,000.00).
4. Loan Structure. Each loan will be in the form of a zero percent (0%) interest, deferred
forgivable loan with a term based on the federal affordability requirements as defined in 24
CFR §92.254 as follows:
a. Homeownership assistance HOME amount per unit under $15,000 requires a minimum
period of affordability of 5 years.
b. Homeownership assistance HOME amount per tmit of $15,001 to $40,000 requires a
minimum period of affordability of 10 years.
5. Loan Documents. All loans to assisted homebuyers must be evidenced by loan documents
provided by Department. Each loan to an assisted homebuyer must be payable to
Department.
6. Method of Loan Forgiveness. Forgiveness of the loan balance is calculated based on a pro-
rata annual share of the loan term. The anniversary date of the loan sh111 constitute
completion of the year. Any partial year shall not be waived. The amount due will be based
on the pro-rata share number of years of the remaining loan term.
7. Sale of Property, Refinance, or Release of Superior Lien.
a. If at any time prior to the full loan period there occurs a resale of the property, a refinance
of any superior lien, a repayment of any superior lien, or if the unit ceases to be the
assisted homebuyer's principal residence, the loan shall become due and payable.
b. In the event tlle home is sold (voluntary or involuntary), the assisted homebuyer will pay
the loan balance from the shared net proceads available based on the reqliirements of 24
CFR §92.254. The net proceeds are the sales price minus superior loan repayment (other
than HOME funds) and any closing costs. A copy of the HUD closiiig statemel7t inust be
provided.
HOME Contract # 100 1224
Page 17 of2l
c. In the event of refinance of any superior lien, at Department's discretion one of the
following options will apply:
i. Re-subordination of the Note if the assisted homebuyer can provide documentation,
acceptable to the Department, showing that no funds are due the assisted homebuyer
as a result of the refinance; or
ii. The assisted homebuyer will pay off the Department's note from loan proceeds from
the refinanced superior lien.
d. In t11e event of the release of any superior lien or repayment of any existing superior
mortgage in full, the assisted homebuyer will have the option of:
i. Repaying the balance of the Department's subardinate loan in full; or
ii. Repaying the balance of the Department's loan in equal monthly installments over a
five (5) year period.
8. Housing Quality Standards. Each unit must, at a minimum, meet or exceed the Housing
Quality Standards (HQS), as well as local building codes and zoning ordinances. For
construction of single family affordable housing, Administrator must also ensure compliance
with the universal design features established by §2306.514 Texas Government Code, the
energy efficiency standards established by §2306.187 of the Texas Government Code, energy
standards as verified by RESCHECK certification, and the International Residential Codes,
as required by Subchapter 6, Chapter 214, of the Local Government Code.
9. Area s) Served. Administrator is limited to serving homebuyers who certify the assisted unit
will be their primary residence, is located in the City of PARIS, located in LAMAR
County, Texas, located in Uniform State Service Region Number FOUR (4), and in a
jurisdiction that is not a participating jurisdiction, as defined in 24 C.F.R. §92.105, and,
unless otherwise approved by the Department.
10. Benchmarks. Performance under the Contract term will be based on the following
benchmarks from the Contract begin date:
a. 6 months, exempt administrative and environmental clearance must be complete for at
least one Household to be assisted;
b. 12 months, environmental clearance must be complete for at least 50% of the Households
to be assisted, 50% of fiuzds must be committed, 25% of funds drawn, and 25% of match
supplied;
c. 18 months, environmental clearance must be complete for at least 75% of the Households
to be assisted, 75% of funds must be committed, 50% of funds drawn, and 50% of match
requirement supplied; and
d. 24 months, 100% of funds must be committed, 100% of funds drawn, and 100% of
matched supplied.
e. If the Administrator is unable to meet any of the benchinarks specified in this subsection,
the Adininistrator is obligated to provide additional documentatioil at the reqltest of the
Department. This additional documentation must, in the Department's sole judgment,
provide reasonable evidence that the Administrator will be able to meet the remaining
benchnlarks. Failure to provide such documentation may result in termination of this
Contract or imposition of the applicable remedies specified in 10 TAC 51.20. Not
HO1vIE Contract#1001224
Page lS of2l
withstanding anything to the contrary herein, all other Contract terms are subject to the
amendment process in the 2009 HOME Rules (10 TAC §53.74).
SECTION III. MATCH
1. Match Requirement. Administrator wi11 provide eligible match funds in the total amolint of
EIGHTEEN THOUSAND AND NO/100 DOLLARS ($18,000.00), as specified in its
HOME Application, or other eligible match as approved by Department.
2. Match Support and Reporting. Match funds must be reported on a pro-rata basis based on
disbursements. Support documentation evidencing the match contribution must be submitted
by Administrator upon request for disbursement of funds for each project assisted, in
accordance with 24 C.F.R. Part 92, the Department's HOME Rule, HOME Program Match
Guide, CPD Notice 97-03 HOME Match Guidance and HOME Program Manual.
SECTION N. ADMINISTRATION
Administrator may expend funds provided under this contract far reasonable administrative and
planning costs incurred directly related to this contract, in accordance with Sections 3, 4, and 5
of this contract and 24 C.F.R §92.207, and as follows:
1. Administrative Funds Amount. Administrative fimds may not exceed four percent (4%) of
the total amotmt of project funds received under this contract or TWELVE THOUSAND
AND NO/100 DOLLARS ($12,000.00).
2. Costs Incurred Prior to the Contract. Before the effective the of the HOME Contract, the
Contract Administrator may incur and be reimbursed for travel costs, as provided for with
Administrative funds, related to mandatory implementation training required by the
Department as a condition of receiving a HOME award and Contract.
3. Disbursement of Administrative Funds. Administrator shall be allowed to draw up to ten
percent (10%) of the actual ailowable administrative costs, including eligible pre-award
costs, incurred at the initial stage of the Contract, with the remaining ninety percent (90%)
funded on a pro-rata basis, based on project fimd disbursements.
SECTION V. HOMEBUYER COUNSELING PROGRAM
Administrator must provide a Homebuyer Counseling Program to all homebuyers assisted under
this contract. The local Homebtryer Counseling Program may include, but is not limited to,
financial management, homebuyer purchase process such as, preparing for homeownership,
shopping for a home, obtaining a martgage, loan closing, post purchase counseling and
foreclosure prevention. Administrator shall mailltain a file containing all activity relating to
efforts made to guide recipients toward homeownership.
HOME Contract#1001224
Page 19 of 21
TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
HOME PROGRAM
HOME CONTRACT # 1001224
EXHIBIT B
THE APPLICASLE LAWS AND REGULATIONS
CITY OF PARIS,
A POLITICAL SUBDIVISION OF THE STATE OF TEXAS
Administrator shall comply with all federal, state, and local laws and regulations applicable to
the activities and performances rendered by Administrator under this contract, including but not
limited to the laws and the regulations specified in Sections I through IV of this Exhibit B.
1. CIVIL RIGHTS
In addition to The Fair Housing Act (42 U.S.C. §3601 et seq. and implementing regulations
at 24 C.F.R. Part 100), specific federal requirements are set forth in 24 C.F.R. Part 5
II. LEAD-BASED PAINT
Lead-Based Paint Poisoning Prevention Act, 42 U.S.C. §4821 et seq. and 24 C.F.R. Part 35
III. ENVIRONMENTAL STANDARDS
The environmental effects of each activity carried out with HOME fiinds must be assessed
in accordance with the provisions of the National Environmental Policy Act of 1969 (42,
U.S.C. §4321 et. seq.) and the related authorities listed in HUD's implementing regulations
at 24 C.F.R. parts 50 and 58.
IV. ACQUISITION/RELOCATION
The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 42
U.S.C. §4201 - 4655 and 49 C.F.R. Part 24.
HOME Contract #100I224
Page 20 of 21
TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
HOME CONTRACT # 1001224
EXHIBIT C
CERTIFICATION REGARDING LOBBYING FOR
CONTRACTS, GRANTS, LOANS, AND COOPERATIVE AGREEMENTS
CITY OF PARIS,
A POLITICAL SUBDIVISION OF THE STATE OF TEXAS
The tmdersigned certifies, to the best of its knowledge and belief, that:
No federal appropriated funds have been paid or will be paid, by ar 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 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, or modification of any federal contract, 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 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 Forni to
Report Lobbying", in accordance with its instructions.
3. The undersigned shall reqLiire ihat 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 sub-recipients
shall certify and disclose accordingly.
This certification is material representation of fact on which reliance was placed when this
transaction was made or entcred into. Submission of this certification is a prerequisite for
making or entering into this transaction imposed by section 1352, Title 31, U.S. Code. Any
person who fails to file the required certifcation shall be subject to a civil penalty of not less
than $10,000 and not more than $100,000 for each such failure.
CITY OF PARIS,
A POLICAL S D AV OF THE STATE OF TEXAS
By:
CCity Manager
Date: _ Qc7
IIOME Contract # 100 1224
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