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HomeMy WebLinkAboutResolution - 2010-R0256 - Agreement W/Lubbock Housing Finance Corporation To Facilitate Federal Grant HERA - 05/27/2010Resolution No. 2010-RO256 May 27, 2010 Item No. 5.22 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK THAT the Mayor of the City of Lubbock is hereby authorized and directed to execute for and on behalf of the City of Lubbock an Agreement and all related documents with the Lubbock Housing Finance Corporation to facilitate utilization of federal grant funds under contract with the City of Lubbock and the Texas Department of Housing and Community Affairs for the Texas Neighborhood Stabilization Program, authorized through the Housing and Economic Recovery Act of 2008 ("HERA") and to further the common goal of providing decent housing at affordable prices for low-income to moderate -income residents of the City of Lubbock. Said Agreement is attached hereto and incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of the Council. Passed by the City Council on _ _ May 27, 2010 TOM MARTIN, MAYOR ATTEST: Rebec a Garza, City Secretary APPROVED AS TO CONTENT: Bill Howerton, Community Developm Director APPROVED AS TO FORM: Amy L. , Assist• .ity Attorney ccdocsiRes.LHFC Agreement May 13, 2010 Resolution No. 2010-80256 May 27, 2010 Item # 5.22 AGREEMENT BETWEEN CITY OF LUBBOCK AND LUBBOCK HOUSING FINANCE CORPORATION FOR TEXAS NEIGHBORHOOD STABILIZATION PROGRAM THIS AGREEMENT, entered this 27th day of May , 2010, by and between the CITY OF LUBBOCK (herein called "City") and LUBBOCK HOUSING FINANCE CORPORATION (herein called "LHFC"). WHEREAS, the City and LHFC share as a common goal the public purpose of providing decent housing at affordable prices for low-income an moderate -income residents of the City of Lubbock; and WHEREAS, the City has applied for and received federal grant funds through the Texas Department of Housing and Community Affairs ("TDHCA") for the Texas Neighborhood Stabilization Program ("NSP"), authorized by the Housing and Economic Recovery Act of 2008 ("HERA") to purchase homes for resale to qualified applicants; and WHEREAS, the City is responsible for oversight and monitoring of said federal funds under the NSP; and WHEREAS, the City will utilize a portion of the NSP grant funds for the public purpose of purchasing, foreclosed properties as defined in the NSP; and WHEREAS, City is authorized under Texas Local Government Code, Section 272.001(g) to convey interest in land to an entity for the development of low-income or moderate income housing; and WHEREAS, the LHFC is an entity for the development of low-income or moderate income housing created under Chapter 394 of the Texas Local Government Code; and WHEREAS, to facilitate the purpose, timeline and benchmarks of the NSP, title to the eligible foreclosed homes to be acquired will be transferred to LHFC for rehabilitation and then purchase by qualified applicants in the NSP; and WHEREAS, the City has the personnel and ability to administer these funds as required by federal regulations and in compliance with OMB Circulars A-122 "Cost Principles for Non -Profit Organizations", the applicable sections of 24 CFR Part 85 "Uniform Administration Requirements for Grants and Cooperative Agreements to State and Local Governments", and the allowability of costs incurred for performances rendered shall be determined in accordance with Department Of Management and Budget (OMB) Circular A-87, as supplemented by the Uniform Grant and Contract Management Acts; NOW, THEREFORE, in consideration of the mutual promises set out in this document, it is agreed between the parties hereto that: I. SCOPE OF SERVICE A. LHFC agrees to perform the following activities under the NSP: 1. To take title to the properties upon approval of the acquisition by the City and to execute all loan closing documents. 2. To execute any documents necessary for the rehabilitation of acquired properties. 3. To transfer title and execute all documents to qualified applicants in the NSP. 4. To perform any other activities for a fee mutually agreed upon by both parties to facilitate the purpose of the NSP; i.e. such as ordering and furnishing three (3) bureau credit reports and/or providing approved homebuyer counseling to NSP applicants. B. City agrees to administer the NSP and perform the following tasks: 1. Locate and inspect properties to be considered for acquisition and negotiate with other governmental agencies, banks, mortgage companies and individuals as applicable for the acquisition of properties. 2. Conduct all environmental assessments as required by TDHCA and obtain approval. 3. Conduct all follow-up inspections. 4. Administer all rehabilitation activities of acquired properties. 5. Identify qualified applicants for purchase of the properties under this Agreement. 6. Perform the accounting and administrative functions necessary to administer the funds received under the NSP Program. 7. Conduct all property management activities until properties are sold to qualified applicants. 8. Conduct all NSP Homeownership Orientation meetings. 9. Conduct all open houses, if applicable 10. Conduct all Affirmative Fair Marketing related to the NSP Program 11. Coordinate with TDHCA all loan closings with approved families or individuals in the NSP. Agreement/NSP/Lubbock Housing Finance Corp. Page 2 12. Maintain all program files for TDHCA inspection and monitoring. 13. Do all reporting required on the program to TDHCA and to the City Council. II. SPECIAL CONDITIONS City agrees to comply with the requirements of Title 24 Code of Federal Regulations, Subtitle A, Part 85 of the Housing and Urban Development regulations concerning the NSP and all federal and state regulations and policies issued pursuant to these regulations III. GENERAL CONDITIONS A. General Compliance Both parties agree to comply with all applicable federal, state and local laws and regulations governing the funds provided under this Agreement. B. Mutual Cooperation Both parties agree to cooperate in the performance of the promises in this Agreement and work toward their mutual goals of providing affordable housing for low or moderate income individuals within the city of Lubbock. C. Acknowledgements City acknowledges that LHFC was formed for the statutory purpose of providing decent, safe, and sanitary housing at affordable prices for residents of the City of Lubbock. City further acknowledges that the purpose of the NSP Program is to increase homeownership opportunities for persons of low to moderate income up to 120% of Median Income as defined by the Department of Housing and Urban Development, and that this Agreement is prepared in furtherance of these goals. IV. INSURANCE REQUIREMENTS City agrees to maintain General Liability Insurance with broad form contractual liability and to include Errors and Omissions coverage in an amount not less than $1,000,000. Such insurance shall name LHFC as an additional insured on a primary and non- contributory basis. V. ADMINISTRATIVE REQUIREMENETS A. Financial Management 1. Accounting Standards The City agrees to comply with Attachment F of OMB circular A-110 and agrees to adhere to the accounting principles and procedures required therein, utilize Agreement/NSP/Lubbock Housing Finance Corp. Page 3 adequate internal controls, and maintain necessary source documentation for all costs incurred. 2. Cost Principals The City shall administer its program in conformance with OMB Circulars A-122 "Cost Principles for Non -Profit Organizations," or A-21, "Cost Principles for Educational Institutions," as applicable; and the applicable sections of 24 CFR Pat 85 "Uniform Administrative Requirements for grants and Cooperative Agreements to State and Local Governments" for all costs incurred whether charged on a direct or indirect basis. B. Documentation and Record Keeping 1. Records to be Maintained The City shall maintain all records required by the federal regulations specified in 24 CFR Part 85 and that are pertinent to the activities under this Agreement. 2. Retention The City shall retain all records pertinent to expenditures incurred under this Agreement for a period of three (3) years after the termination of all activities under this Agreement or after the resolution of all Federal audit findings, whichever occurs later. 3. Client Data The City shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. 4. Property Records City shall maintain real property inventory records which clearly identify properties purchased, improved, or sold under this Agreement. 5. Audits and Inspections All City and LHFC records with respect to any matters covered by this Agreement shall be made available to either agency, their designees, the Texas Department of Housing and Community Affairs or the Federal Government, at any time during normal business hours, as often as said agency deems necessary, to audit, examine, and make excerpts of all relevant data for the purpose of audit. Agreement/NSP/Lubbock Housing Finance Corp. Page 4 IN WITNESS WHEREOF, the parties have executed this Agreement this the 27th day of May, 2010. CITY OF LUBBOCK HOUSING FINANCE TION ToniM^ a n, Mayor tathy4gA416, President ATTEST: Bec Garza City Secretary APPROVED AS TO CONTENT APPROVED AS TO FORM: Agreement/NSP Lubbock Housing Finance Corp. Page 5