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HomeMy WebLinkAboutResolution - 4836 - Agreement - Norwest Bank Texas, NA & CMC Inc - CDBG NCNRP, CH Neighborhood - 05_11_1995Resolution No. 4836 May 11, 1995 Item #35 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock an Agreement between Norwest Bank Texas, N.A. and Chatman Memorial Center, Inc. implementing the CDBG New Construction Neighborhood Revitalization Project in the Chatman Hill Neighborhood. 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 this ATTEST: betty A Johnson,City Secretary CONTENT: Coordinator APPROVED AS TO FORM: Linda L. Chamales, Assistant City Attorney dp:ccdocslcha==.res May 2, 1995 Resolution No. 4836 May 11, 1995 Item #35 AGREEMENT STATE OF TEXAS COUNTY OF LUBBOCK § This Agreement is entered into this 11 th day of May , 1995, by and between CITY OF LUBBOCK (herein called "City"), NORWEST BANK TEXAS, N.A. (herein called "Norwest" ), and CHATMAN MEMORIAL CENTER, INC. (herein called "Chatman"). WHEREAS, the City Council of the City of Lubbock has designated Chatman Hill as a target neighborhood for the 1994-95 Community Development Block Grant (CDBG) funding year; and WHEREAS, the City has approved a New Construction Neighborhood Revitalization Project for the Chatman Hill Neighborhood and has allocated four hundred thousand dollars ($400,000.00) of Community Development Block Grant funds pursuant to the Housing and Community Development Act of 1974, 42 U.S.C. 5301 d=. and 24 CFR Subtitle A, Part 570; and WHEREAS, Chatman Memorial Center has entered into a contract with the City of Lubbock to manage the CDBG New Construction Neighborhood Revitalization Project in the Chatman Hill Neighborhood (herein called "Revitalization Project"); and WHEREAS, Norwest Bank Texas, N.A. desires to assist the citizens in the Chatman Hill Neighborhood in their revitalization effort by setting aside two million dollars ($2,000,000.00) of mortgage lending funds for this purpose; and WHEREAS, the accomplishment of the above public purpose is the predominate purpose of this transaction; continuing supervision by the City together with statutory and contractual requirements provide sufficient assurance that the public purpose will be accomplished; NOW THEREFORE, it is agreed between the parties hereto that: A. City Responsibilities 1. City agrees to provide Chatman assistance from CDBG Grant funds in an amount not to exceed four hundred thousand and no/100 dollars (400,000.00) as provided in the Community Development Block Grant Between the City of Lubbock and Chatman Memorial Center, Inc. dated August 11, 1994, a copy of which is attached as Exhibit A and incorporated herein as if fully set forth. 2. City and Chatman agree that any provision of the August:, 1994, Agreement (attached as Exhibit A) which conflicts with or is made inapplicable by this Agreement between City, Norwest, and Chatman, shall be governed by the new Agreement except that paragraph VI.H. of the August, 1994, Agreement shall remain in effect.. 3. City agrees to provide the services to Chatman listed in Section A. 3 of the above described contract (Exhibit A). 4. In addition, City agrees to assist Chatman in determining policies for qualification of applicants for down payment and closing cost assistance out of the Community Development Block Grant Between the City and Chatman. B. Chatman Responsibilities 1. Chatman agrees to provide the services listed in Section B. of the above described contract (Exhibit A) except those made inapplicable by this Agreement. 2. In addition, Chatman agrees to provide the following services: a. Provide lots to the best of its ability for construction of new homes under the CDBG New Construction Neighborhood Revitalization Project in the Chatman Hill Neighborhood, the lots to be deeded by Chatman to the approved contractor selected by the loan applicant who will construct a residence on the lot or lots in accordance with the requirements and specifications of Chatman and Norwest. b. Develop policies for approving applicants for loan of CDBG funds for down payment and closing cost assistance in the Revitalization Project c. Provide loan/grant assistance from CDBG funds for down payment and closing costs of qualifying applicants who have been prescreened and approved (by the nonprofit agency recommended by Norwest), for long term mortgage loans under the Revitalization Project. Said CDBG loans shall be subordinate to the Norwest mortgage. d. Approve plans, specifications, and contractors for the construction of the new homes. e. Hire an architect and an attorney to advise Chatman Memorial Center in administering this project if necessary. f. Provide all marketing for the project. CrrY/NORWEST/CHATMAN AGREEMENT — Page 2 W g. Provide quarterly written progress reports to the Urban Renewal Board and to City beginning 90 days from the date of this Agreement and continuing until Chatman's responsibilities under this Agreement are completed. 3. Approved applicants will execute a Mechanic's Lien Contract and a Mechanic's Lien Note with a Contractor of their choice from a list of contractors listed with the City of Lubbock as cleared by the Department of Housing and Urban Development and approved by Norwest and Chatman, to construct the residence. 4. Pursuant to such guidelines as Chatman shall from time to time develop and, where appropriate, modify, Chatman shall award loan/grants to qualified applicants in varying amounts, the loan/grants to be used and applied by the applicant to the down payment and closing costs of the new residence purchased by the applicant and constructed by the Contractor, the balance of the purchase price to be financed by Norwest. Applicant shall execute an Agreement and such other documents as may be required and in form and substance satisfactory to Chatman (and City) acknowledging: a. Receipt of the grant; b. That the grant constitutes taxable income to the applicant; c. That the approved applicant is satisfied with the work as completed by the contractor and that Chatman, City and Norwest bear no responsibility for any negligent acts, defects, faulty work or uncompleted work by the contractor; d. That if the residence is voluntarily sold by the applicant on or before five years from the date of the closing, that the amount of the loan/grant given the applicant by Chatman shall be repaid from the proceeds of the sale in full; e. That if the applicant defaults in the payment of the first lien note causing Norwest to foreclose within the first five years, and if on foreclosure the involuntary sale of the residence brings proceeds in excess of the amount owed Norwest on its note and the costs of sale, the overage shall be paid to Chatman in an amount up to but not exceeding the amount of the loan/grant prior to disbursement back to the applicant; and f. Any other provisions as required by Chatman or City. CTTY/NORWEST/CHATMAN AGREEMENT — Page 3 S. Notwithstanding the foregoing, the responsibilities and obligations of Chatman under this agreement are expressly limited as follows: a. Chatman shall have no liability, obligation or responsibility whatsoever with respect to the construction of any new home except to within its guidelines award grants to be applied toward the down payment and/or closing costs, all grants to be made within its sole discretion; b. Chatman shall have no responsibility or obligation in any way with regard to the quality of the construction, the material used or the workmanship incorporated into the construction of any home; c. Chatman shall have no responsibility to inspect the progress or quality of the construction of any home and shall in no way be required to render an opinion or certify to Norwest or the City as to the quality of construction or the percentage of completion of construction; d. Chatman shall have no liability or responsibility, nor is it assuming any liability, for the performance, non-performance or default of any contractor or subcontractor or for any failure of any contractor or subcontractor to construct, complete, protect or insure any home, or for the payment of any cost or expense incurred in connection therewith, nor shall it directly or indirectly guarantee the performance of any obligation of any applicant who receives a grant pursuant to this Project. C. Norwest Responsibilities 1. Norwest agrees to set aside and lend up to a maximum of two million dollars ($2,000,000.00) for interim construction of new homes for qualified applicants under the Revitalization Project. 2. In addition, Norwest agrees as follows in connection with the interim construction financing of new homes for qualified applicants under the Revitalization Project: a. Refer all applicants approved for a first lien mortgage to Chatman with regard to a down payment and closing costs required in order to obtain the first lien mortgage; and b. Make all necessary inspections, as deemed necessary by Norwest, during the construction of each new home; and c. On interim loans, lend up to 80% of the appraised value or sales price of a home, whichever is less, for any approved applicant; and CITY/NORWEST/CHATMAN AGREEMENT — Page 4 d. On permanent loans, lend up to 97% of the appraised value or sales price of a home, whichever is less, for any approved applicant; and e. In no event shall Norwest be required to provide interim financing for any home that is not presold. All loans made by Norwest pursuant to this agreement, shall be charged a 1% origination fee. Additionally, all such loans shall have a floating interest rate factor equal to 2% per annum plus the prime interest rate announced by Norwest for mortgage loans. 3. Notwithstanding the foregoing, the responsibilities and obligations of Norwest under this Agreement are expressly limited as follows a. Norwest shall have no obligation to fund any interim construction loan until all loan documents required by Norwest have been executed and/or assigned to Norwest, in a form and substance satisfactory to Norwest; and b. Norwest shall only be obligated to make advances or fund the interim construction loan in accordance with a percentage of the completion of the home as determined by Norwest in its sole discretion; and c. Norwest shall have no liability, obligation or responsibility whatsoever with respect to the construction of any new home except to advance the proceeds of the interim construction loan; and d. Norwest shall have no responsibility or obligation in any way with regard to the quality of the construction, the material used, or the workmanship incorporated into the construction of any home; and e. Inspections by Norwest shall relate solely to the percentage of the completion of the home in order to determine whether an advance is appropriate and in no way shall Norwest have the obligation or responsibility to inspect the construction of the residence to determine whether (1) the construction has been performed in a good and workmanlike manner; or (ii) the construction has been performed in accordance with the plans and specifications; and f. Norwest assumes no liability as a result of the inspection of the construction of any home nor is Norwest assuming any liability for the performance or default of any contractor or subcontractor, or for any failure of any contractor or subcontractor to construct, complete, protect or insure any home, or for the payment of any cost or expense incurred in connection therewith, or for the performance or nonperformance of any obligation of any applicant; and ary/NORWEST/cHATMAN AGREEMENT - Page 5 H. g. All loans made by Norwest pursuant to this agreement, shall be subject to and in accordance with the current loan policies and requirements then followed by Norwest. This Agreement shall commence May 11, 1995, and shall terminate May 11, 1996. Upon termination of this Agreement, Norwest shall have no further obligation to fund interim construction of homes with regard to the Revitalization Project. The term of this Agreement and the provisions herein may be extended by written agreement of the parties. Communication concerning this Agreement shall be directed to the following representatives: Juan A. Reyes with copy to: Linda L. Chamales Housing and Rehabilitation Coordinator Assistant City Attorney City of Lubbock City of Lubbock P. O. Box 2000 P. O. Box 2000 Lubbock, Texas 79457 Lubbock, Texas 79457 Harold Chatman, President with copy to: R. Byrn Bass, Jr. Chatman Memorial Center, Inc. HARDING, BASS, FARGASON, & 2316 Date BOOTH Lubbock, Texas 79404 P. O. Box 5950 Lubbock, Texas 79408 Greg K. Garrett with copy to: Mark W. Harmon Norwest Bank Texas, N.A. CRENSHAW, DUPREE & MILAM, P. O. Box 1241 L.L.P. Lubbock, Texas 79408 P. O. Box 1499 Lubbock, Texas 79408-1499 CITY/NORWEST/CHATMAN AGREEMENT -- Page 6 IV. GENERAL CONDITIONS A. General Compliance All parties agree to comply with all applicable Federal, State and local laws and regulations governing the funds under this Agreement which were made available under City's Community Development Block Grant. B. Amendments The parties may amend this Agreement at any time provided that such amendments make specific reference to this Agreement and are executed in writing, signed by a duly authorized representative of both organizations and approved by the City Council if required by law. City may, in its discretion, amend this Agreement to conform with federal, State or local governmental guidelines, policies and available funding amounts or for other reasons. If such amendments result in a change in the funding, the scope of services, or the activities to be undertaken as part of this Agreement, such modifications will be incorporated only by written amendment signed by all parties. C. Conflict of Interest All parties agree to abide by the provisions of 24 CFR 570.611 with respect to conflicts of interest, and each party covenants that it presently has no financial interest, direct or indirect which would conflict in any manner or degree with the performance of the services required under this Contract and that no person having such an interest will be employed as or by the subcontractor carrying out this Agreement. C=/NORWEST/CHATMAN AGREEMENT -- Page 7 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. ATTEST: CHATMAN MEMOI .3jAL CENTER, INC. UAROLD CHATMAN, PRESIDENT AS TO CONTENT: NORWEVIBANK TEXAS, N.A. >, LAWRENCE, PRESIDENT [,ehabilitation Coordinator TO FORM: Linda L. Chamales, Assistant City Attorney lle/cityatVcd k-nndoc April 28, 1995 M Y/NORWESVCHATMAN AGREEMENT — Page 8 Resolution No. 4576 August 11, 1994 Item I19 COMMUNITY DEVELOPMENT BLOCK GRANT BETWEEN THE CITY OF LUBBOCK AND CHATMAN MEMORIAL CENTER, INC. EXHIBIT STATE OF TEXAS § A COUNTY OF LUBBOCK § -- -- - --� - --- This Agreement entered into this 11 th day of August, 1994, by and between the CITY OF LUBBOCK (herein called 'City') and CHATMAN MEMORIAL CENTER, INC. (herein called "Grantee'). WHEREAS, the City Council of the City of Lubbock has designated Chatman Hill as a target neighborhood for the 1994-1995 Community Development Block Grant (CDBG) funding year; and WHEREAS, the City has approved a New Construction Neighborhood Revitalization Project for the Chatman Hill Neighborhood and has allocated FOUR HUNDRED THOUSAND DOLLARS ($400,000) of Community Development Block Grant funds pursuant to the Housing and Community Development Act of 1974, 42 U.S.C. 5301 g.. and 24 CFR Subtitle A, Part 570-, and WHEREAS, the Grantee is a neighborhood based nonprofit corporation offering services to the Chatman Hill Neighborhood of Lubbock; and WHEREAS, Grantee proposes to manage the CDBG New Construction Neighborhood Revitalization Project in the Chatman Hill Neighborhood; and WBFREAS, the services provided by the Grantee benefit residents of the area and consti- tute a valuable public service; and W IMEAS, the City Council of the City of Lubbock has declared the services provided by the Grantee to be a public purpose; and WHEREAS, the Grantee and the services it provides have been found to meet the criteria for funding under 24 CFR Subtitle A Part 570.201; and the accomplishment of the above public purpose is the predominate purpose of this transaction; continuing supervision by the City together with statutory and contractual re- quirements provide sufficient assurance that the public purpose will be accomplished; the City Council has found that the Grantee has the special expertise, knowledge and experience necessary for the management of the New Construction Neighborhood Revitalization Project and that the City will receive adequate consideration in the form of substantial public benefit; and WHEREAS, the City desires to contract with the Grantee to make available assistance for the management of the New Construction -Neighborhood Revitalization Project; NOW THEREFORE, it is agreed between the parties hereto that: SCOPE OF SERVICE A. City Responsibilities 1. City agrees to provide Grantee assistance from CDBG Grant funds in an amount not to exceed FOUR HUNDRED THOUSAND AND N01100 DOLLARS ($400,000.00) in return for Grantee performing the activities set forth in this Agreement as consideration for said funds. 2. CiWs financial assistance will be limited to the following: a. The assistance made available through this Agreement shall be used by the Grantee for the purpose of management and new construction in the Neighborhood Revitalization project for the Chatman Hill Neighborhood; and b. No more than ten percent (101%) of the funds actually utilized through this Agreement may be spent for administrative costs. 3. City will provide the following services: a. Provide Grantee with a copy of the current U. S. Department of Labor's Wage Determination for inclusion in the bid and contract documents for the construction process; b. Review bid selection process prior to contract award for construction work; C. Obtain a contractor's clearance from the Department of Housing and Urban Development; d. Conduct a preconstruction conference with the contractor to review the Davis -Bacon Act, the Contract Work Hours, COMMUNNY DEVEEDMEn BLOM oR.ANr AGREE CWr CHAT MAN MEMORW. CIMER, INC. — PAGE 2 and Safety Standards Act, and other applicable federal, state and local labor requirements; e. Monitor contractor's compliance with all labor standards provisions applicable to the Community Development Block Grant Program during construction period and certify on each periodic payment request that all labor standards provisions have been satisfied. B. Grantee's Responsibilities 1. Grantee agrees to use the funds made available through this Agreement solely for the purpose of new construction in the Neighborhood Revitalization Project in the Chatman Hill Neighborhood, except that up to ten percent (1("/o) of the funds actually utilized through this Agreement may be spent for administrative costs; and 2. Grantee agrees to avail itself of the services of the Lubbock Housing Financing Corporation for assistance in providing the services required by this Agreement; and 3. Grantee agrees to provide written progress reports to the Urban Renewal Board and to City every thirty (30) days beginning thirty (30) days from the date of this Agreement and continuing until Grantee's responsibilities under this Agreement are completed; and 4. Upon completion of this project, if the entire funded amount is not used, Grantee agrees to refund any unused portion to the City within thirty (30) days; and 5. Grantee agrees to work with lending institutions, e.g. banks and/or mortgage finance companies, to secure commitments for leveraging available new construction funding and loan servicing; and 6. Grantee agrees to develop designs for homes which are compatible with the Chatman Kill neighborhood and acceptable to area citizens as well as the Urban Renewal Board and also to develop plans to promote the use of neighborhood contractors in participation with residential construction contractors; and 7. Grantee agrees to develop in cooperation with the Housing and Rehabilitation Section of the City of Lubbock, a design for new home purchase loans that will attract homebuyers and stimulate the CON AUNny DEVEIAPMENr BLOCK GRANT AGREE M CHATMAN MEMORIAL CENUP, DIC. — PAGE 3 new housing construction climate in the Chatman Hill neighborhood; and S. Grantee agrees to develop and implement an Affirmative Fair Marketing Strategy; and 9. Grantee agrees to ensure that any funds awarded are used in a manner consistent with CDBG requirements and in strict accordance with any applicable federal, state or local laws; and 10. Grantee agrees to ensure that homes built under the construction contract of the project will be constructed in phases to test the marketability of said homes; and 11. Grantee agrees to ensure that any leveraged funds by local banks and/or lending institutions are confirmed by the Urban Renewal Board; and 12. Grantee agrees to solicit for construction work through the competitive bid process which shall include formal advertisement, acceptance of sealed bids, the public opening of those bids, and awarding the construction contract to the lowest responsible bidder if said bidder is eligible for clearance for the Department of Housing and Urban Development; and 13. Grantee agrees that none of the services covered by this Agreement will be subcontracted without the prior written consent of the City, and 14. Grantee agrees to return to the City any program income received or accounts receivable which are attributable to the use of Community Development Block Grant funds; and 15. Grantee agrees to establish homeownership training classes, credit counseling sessions and other appropriate methods of assistance for potential buyers in cooperation with other local agencies; and 16. Grantee agrees, in conjunction with the Chatman Hill l Neighborhood Association, to develop a strategy for making the Chatman 10 commurdy attractive to young families with children or of child bearing age through the provision of low to moderate income housing and efforts to make the neighborhood safe and conductive to child rearing; and IN • • 84y :9 "M i • 19 "11 R 11 V. 17. Grantee agrees to continue to investigate economic and residential development opportunities for the Chatman Dill neighborhood; and 18. Grantee agrees to attend and to participate in all scheduled program training and administrative duties. This Agreement shall commence August 11 1994, and shall terminate August 11 . 1995. The term of this Agreement and the provisions herein shall be extended to cover any additional time period during which Grantee remains in control of CDBG funds or other assets including program income. �'AYMENT City will pay to Grantee up to FOUR HUNDRED THOUSAND AND N0/100 DOLLARS (S400,000.00) to Grantee based upon the receipt of requests for funds and project expense summaries for the bidding, contracting and construction costs incurred for the construction of new homes under the CDBG New Construction Neighborhood Revitalization Project in the Chatman Kill Neighborhood. Grantee will make payments in a timely manner to the Contractor. NOTICES Communication and details concerning this Agreement shall be directed to the following contract representatives: Juan A. Reyes Housing and Rehabilitation Coordinator City of Lubbock P. O. Box 2000 Lubbock, Texas 79457 ESPECIAL CONDITIONS Harold Chatman President Chatman Memorial Center, Inc. 2316 Date Lubbock, Texas 79404 Grantee agrees to comply with the requirements of Title 24, Code of Federal Regulations, Part 570 of the Housing and Urban Development regulations concerning the CDBG program and all Federal regulations and policies issued pursuant to these regulations. COMMUNITY DEVELOPMENT BLOCK GRANT AGREEMENT CHATMAN t a"JAL CENTER, INC. -- PAGE 5 VI. GENERAL CONDMQNS A. General Compliance Grantee agree to comply with all applicable Federal, State and local laws and regulations governing the funds provided under this Agreement which were avail- able under City's Community Development Block Grant. B. Independent Contractor Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties. Grantee shall at all times remain an independent contractor with re- spect to the services to be performed under this Agreement. City shall be exempt from pay of all Unemployment Compensation, FICA, retirement, life and/or medi- cal insurance and Worker's Compensation Insurance as the Grantee is an independent Grantee. C. Hold Harmless Grantee shall hold harmless, defend and indemnify City from any and all claims, actions, suits, charges and judgments whatsoever that arise out of Grantee's per- formance or nonperformance of the services or subject matter called for in this Agreement. D. Workers Compensation Grantee shall carry sufficient insurance coverage to protect contract assets from due to theft, fraud and/or undue physical damage, and as a minimum shall purchase a blanket fidelity bond covering all employees in an amount equal to cash advances from City. E. Insurance and Bonding Grantee shall carry sufficient insurance coverage to protect contract assets from loss due to theft, fraud and/or undue physical damage, and as; a minimum shall pur- chase a blanket fidelity bond covering all employees in an amount equal to cash advances from City. F. City Recognition Grantee shall insure recognition of the role of City's Community Development Block Grant Program in providing funding through this Agreement. All activities, facilities and items utilized pursuant to this Agreement shall be prominently labeled as to funding source. In addition, Grantee will include a reference to the support coheAumnY DEVELCWNIERT BLOCK GRANT AGREEMENT CHATMAN MEMORIAL CENTER, INC. - PAGE 6 provided herein in all publications made possible with funds made available under this Agreement. G. Amendments City or Grantee may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, and area executed in writing, signed by a duly authorized representative of both organizations and approved by the City Council if required by law. Such amendments shall not in- validate this Agreement, nor relieve or release City or Grantee from its obligations under this Agreement. City may, in its discretion, amend this Agreement to conform with Federal, State or local governmental guidelines, policies and available heeding amounts, or for other reasons. if such amendments result in a change in the funding, the scope of services, or the activities to be undertaken as part of this agreement, such modifi- cations will be incorporated only by written amendment signed by both City and Grantee. H. Suspension or Termination Either party may terminate this Agreement at any time by giving written notice to the other party of such termination and specifying the effective date thereof at least thirty (30) days before the effective date of such termination. Partial termination of the Scope of Service in Paragraph I.B above may only be undertaken with the prior approval of City. in the even of any termination for convenience, all finished or finished documents, data, studies, surveys, maps, models,, photographs, reports, or other materials prepared by Grantee under this Aft shall at the option of the City, become the property of City, and Grantee shall be. entitled to receive just and equitable compensation for any satisfactory work completed on such docu- ments or materials prior to the termination. City may also suspend or terminate this Agreement, in whole or in part, if Grantee materially fans to comply with any term of this Agreement, or with any of the rules, regulations, or provisions referred to herein, and the City may declare the Grantee ineligible for any further participation in City contracts, in addition to other remedies as provided by law. In the event there is probable cause to believe Grantee is in noncompliance with any applicable rules or regulations, City may withhold up to fifteen percent (15%) of said Contract fiends until such time as Grantee is found to be in compliance by City or is otherwise adjudicated to be in compliance. •• i i c • is :1 • s • c • aym VII. ADMINISTRATIVE REQUIREMENTS A. Financial Management Grantee agrees to comply with Attachment F of OMB Circular A-110 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. r _• 0s . T Grantee shall administer its program in conformance with OMB Circular A 122, "Cost Principles for Nonprofit Organizations," or A 21, "Cost Principles for Educational Institutions," as applicable, for all costs incurred whether charged on a direct or indirect basis. B. Documentation and Record -Keeping 1. Records to be Maintained Grantee shall maintain all records required by the federal regulations speci- fied in 24 CFR 570.506, and that are pertinent to the activities to be funded under this Agreement. 2. Retention Grantee shall retain all records pertinent to expenditures incurred under this Agreement for a period of three (3) years after the termination of an activi- ties funded under this Agreement, or after the resolution of all Federal audit findings, whichever occurs later. 3. Chem Data Grantee shall maintain client data demonstrating client eligibility for serv- ices provided. Such data shall include, but not be limited to, client name, address, income level other basis for determining eligibility, and description of service provided. Such information shall be made available to City monitors or their designees for review upon request. CONOAUNrrY DEVEIAPMFNr BIACK GRANT AGREE GNr CHATMAN MEMORIAL CFN 1M INC. — PAGE 2 i. • T t All Grantee records with respect to any matters covered by this Agreement shall be made available to City, their designees or the Federal Government, at any time during normal business hours, as often as City deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by Grantee within thirty (30) days after receipt by the Grantee. Failure to comply with the above audit requirements will constitute a violation of this Agreement and may result in the withholding of future payments. VIII. PERSONNEL AND PARTICIPANT CONDMONS A Civil Rights 1. Compliance Grantee agrees to comply and to require all subcontractors to comply with Title VI of the Civil Rights Act of 1964, as amended, Tittle VIII of the Civil Rights Act of 1968, as amended, Section 109 of Tittle I of the Housing and Community Development Act of 1974, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age of Dis- crimination Act of 1975, Executive Order 11063, and with Executive Order 11246, as amended by Executive Orders 11375 and 12086. 2. Land Covenants This Agreement is subject to the requirements of Title VI of the Civil Rights Act of 1964 and 24 CFR 670 Part I. In regard to the sale, lease, or other transfer of land acquired, cleared or improved with assistance pro- vided under this Agreement, Grantee shall cause or require a covenant running with the land to be inserted in the deed or lease for such transfer, prohibiting discrimination in the sale, lease, or rental, or in the use or occu- pancy of such land, or in any improvements erected or to be erected thereon, providing that the City and the United States are beneficiaries of and entitled to enforce such covenants. Grantee also agrees to take such measure as are necessary to enforce such covenant and will not itself so discriminate. COIvAdU Y DEVEWP14MT BLOCK GRANT AGRE NONr CHA1UM MEMOMAL CFNTER, INC. — PAGE 9 B. - Employment Restrictions Grantee agrees to comply and require all subcontractors to comply with the requirements of the Secretary of Labor in accordance with the Davis - Bacon Act, as amended, the provisions of Contract Work Hours, the Safety Standards Act, the Copeland "Anti -Kickback" Act and all other applicable Federal, State and local laws pertaining to labor standards inso- far as those acts apply to the performance of this Agreement. Grantee will maintain documentation which demonstrates compliance with hour and wage requirements of this part; this documentation shall be made available to the City to the City for review upon request. Grantee agrees that all contractors engaged under contracts in excess of TWO THOUSAND AND N01100 DOLLARS ($2,000.00) for construc- tion, renovation or repair of any building or work financed in whole or in part which assistance provided under this Agreement shall comply with Federal requirements adopted by the City pertaining to such contracts and with the applicable requirements of the regulations of the Department of Labor under 29 CFR Parts 1, 3, 5 and 7 governing payment of wages and ratios of apprentices and trainees to journeymen; provided, -that if water rates higher than those required under the regulations are imposed by State or local law, nothing hereunder is intended to relieve Grantee of its obliga- tion, if any, to require payment of the higher wage. Grantee shall cause or require to be insured in full, in all such contracts subject to such regulation, provisions meeting the requirements of this paragraph for contracts in excess of TEN THOUSAND AND N01100 DOLLARS ($10,000.00). 2. 'Section 3" Clause Grantee agrees to comply with the provisions of Section 3 and to include the following clause in all subcontracts executed under this Agreement: "The Work to be performed under this Contract is a project assisted under a program providing direct federal finance assistance from HUD and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended. Section 3 requires that to the greatest extent feasible opportunities for training and cmployment be given to lower income residents of the project area and contracts for work in connection with the project be awarded to business concerns which are located in or owned in substantial part by persons residing in the areas of the project." COMMUNrrY DEVELOPMENT BLACK GRANT AGREEMENT CHATMAN MEMORIAL CENTM M. - PAGE 10 C. Conduct Grantee is prohibited from using funds provided herein or personnel employed in the administration of the program for political activities; sea tarian, or religious activities; lobbying, political patronage, and nepotism. Grantee and City agree to abide by the provisions of 24 CFR 570.611 with respect to conflicts of interest, and Grantee covenants that it presently has no financial interest, direct or indirect, which would conflict in any manner or degree with the performance of the services required under this Contract and that no person having such an interest will be employed as or by the subcontractor carrying out this Agreement. IX. ENVIRONMENTAL CONDMONS A Air and Water Grantee agrees to comply with the following regulations insofar as they apply to the performance of this contract: Clean Air Act, 42 U.S.C. 1857, gj. ,M., Federal Water Pollution Control Act, as amended 33 U.S.C. 1251, V. M. and all regula- tions and guidelines issued thereunder, Environmental Protection Agency (EPA) regulations pursuant to 40 CFR Part 50, National Environmental Policy Act of 1969, and HUD Environments Review Procedures (24 CFR Part 58). B. Flood Disaster Protection Grantee agrees to comply with the requirements of the Flood Disaster Protection Act of 1973 in regard to the sale, Iease, or other transfer of land acquired, cleared or improved under the terms of this Agreement, as it may apply to the provisions of this Aft. C. Lead -Based Paint Grantee agrees that any construction or rehabilitation of residential structure with assistance provided under this contract shall be subject to HUD Lead -Based Paint Regulations at 24 CFR 570.608 and 24 CFR Part 35 and in particular Sub -part B thereof Such regulations pertain to all HUD assisted housing and require that all owners, prospective owners, and tenants or properties constructed prior to 1978 be properly notified that such properties may include lead4wed paint. Such COMMUNITY DEVELOPZrI M BLOCK GRANT AGREEMENT CHA'IMAN MEMORIAL CEN Ek INC. - PAGE l l notification shall point out the hazards of lead -based paint and explain the symp- toms, treatment and precautions that should be taken when dealing with lead -base paint poisoning M un7WP e c UTPP'R>~ n>; tho Parties have executed this Agreement as of the date first A17rlJ7 Betty tV Johnson, CXty Secretary AS TO CONTENT: Coordinator TO FORM: Linda L. Chamales, Assistant City Attorney U.C.ISCATMAN.Doc tAT Disc CHATMANIAEMORIAL CENTER, INC.. HAR LI} CHATMAN, PRESIDENT COMMUNITY DEYELOPI UM BID= CHLWT AGREEMENT CHATMAN MEMORIAL CENTER, INC. — PAGE 12 y8t1, Memorandum DATE: August 5, 1996 TO: Bob Cass, City Manager FROM: R. Doug Goodman, Director of Health and Community Services lu /vr' RE: Extension Agreement Between Chatman Memorial Center, Norwest Bank, and the City of Lubbock. RECEIVED AUG 6 1996 CITY MANADEI? S OFFICE Attached you will find: a memo from Tony Reyes to me, a resolution passed by Council on May 11, 1995, a signed agreement between Chatman Memorial Center, Norwest Bank, and the City, and a signed contract between the City and Chatman Memorial for CDBG funds. Also attached are three new "Extensions of Agreement" which need the Mayor's signature. The Legal Department indicated to Tony that the Mayor could sign these agreements without Council action because they are extensions to an original contract. In August of 1994, the City Council authorized $400,000 of CDBG funds to be used by Chatman Memorial Center, Inc. for new home construction. The Mayor and T.J. Patterson worked with Chatman Memorial Center, Inc. in arranging for Norwest Bank to commit $2,000,000 for interim construction of new houses in the Chatman Hill neighborhood. Because of the complexity of the procedure, this was a long drawn -out process. Federal law authorizing new home construction with CDBG funds ended in August 1995, but with the new Federal budget it was again authorized. While the Federal Government was debating the budget, the old agreements lapsed. Therefore, we need to get an extension signed by all parties. The three agreements for the Mayor's signature are included. If you have any questions, please feel free to call. CITY OF LUBBOCK MEMORANDUM TO: Doug Goodman, Managing Director FROM: Tony Reyes, CDNI/Housing Manager DATE: August 2, 1996 SUBJECT: REQUEST FOR MAYOR LANGSTON'S SIGNATURE ON EXTENSION AGREEMENT WITH THE CITY OF LUBBOCK NORWEST BANK TEXAS N.A.. AND CHATMAN MEMORIAL CENTER INC. Attached please find three copies of the Extension Agreement for Mayor Langston's signature. This extension extends the expiration date of the tri-party agreement of May 11, 1995 (attached) with the City, Norwest Bank and Chatman Memorial Center, Inc. from May 11, 1996 to May 11, 1998. In the tri-party agreement, Norwest Bank agreed to commit $2,000,000 for interim construction of new homes in the Chatman Hill Neighborhood to match the $400,000 Community Development Block Grant funds from the City of Lubbock to Chatman Memorial Center, Inc. in the Agreement of August 11, 1994 (attached). If you have any questions regarding this agreement, please call me. SP Disk R/Agr TR rIM STATE OF TEXAS )( )( EXTENSION OF AGREEMENT COUNTY OF LUBBOCK )( On May 11, 1995, the CITY OF LUBBOCK ("the City"), NORWEST BANK TEXAS, N.A. ("Norwest") and CHATMAN MEMORIAL CENTER, INC. ("Chatman") entered into an Agreement whereby the City agreed to provide Chatman funds not to exceed $400,000.00 as provided in the Community Development Block Grant between the City of Lubbock and Chatman Memorial Center, Inc. which was dated August 11, 1994 and attached to the May 11, 1995 Agreement ("the Agreement"). In the Agreement, Norwest agreed up to $2,000,000.00 for interim construction of new homes in the Chatman Hill neighborhood. The Agreement provided for a May 11, 1996 expiration date. The City, Norwest and Chatman desire to extend the term of the Agreement and otherwise ratify the other terms and conditions set forth therein. Accordingly, for mutual consideration, the receipt and sufficiency for which is hereby acknowledged, the City, Norwest and Chatman hereby agree as follows: 1. The Agreement dated May 11, 1995 expiring May 11, 1996 shall be, and hereby is, extended for another two (2) years and shall now expire May 11, 1998. 2. The parties hereto otherwise ratify and confirm all of the other terms and conditions set forth in the Agreement. Dated May 11, 1996. CHATMAN MO CENTER, INC. By: H rold Chatman, resident NORWEST B TEXAS, By: Gary Lawrence, President Extension of Agreement Page 1 b&Wchatmanlext-agr r- ATTEST: APPROVED AS TO FORM: Amy wwq Assistant ity Attorney E:teasion of Agreement Page 2 bass/chatman/eit-agr r '� STATE OF TEXAS § COUNTY OF LUBBOCK § EXTENSION OF AGREEMENT WHEREAS, on May 11, 1995, the CITY OF LUBBOCK ("the City"), NORWEST BANK TEXAS, N.A. ("Norwest") and CHATMAN MEMORIAL CENTER, INC. ("Chatman") entered into an Agreement whereby the City agreed to provide Chatman funds not to exceed $400,000.00 as provided in the Community Development Block Grant between the City of Lubbock and Chatman Memorial Center, Inc. which was dated August 11, 1994 and attached to the May 11, 1995 Agreement ("the Agreement"). In the Agreement, Norwest agreed up to $2,000,000.00 for interim construction of new homes in the Chatman Hill neighborhood. Said Agreement was extended on May 11, 1996 to provide for a May 11, 1998 expiration date. WHEREAS, the City, Norwest and Chatman desire to extend the term of the Agreement and otherwise ratify the other terms and conditions set forth therein. NOW THEREFORE, for mutual consideration, the receipt and sufficiency for which is hereby acknowledged, the City, Norwest and Chatman hereby agree as follows: 1. The Agreement dated May 11, 1995 expiring May 11, 1998 shall be, and hereby is extended and now shall expire September 30, 1998. 2. The parties hereto otherwise ratify and confirm all of the other terms and conditions set fo in the Agreement. Da CHATNON MEMORI CE TER, INC. By: hQ DarlyneCyatmei<:::::� NOR ST ANK TEXAS, N. By• Lawrence, President ATTEST: / �--- 444� Ka ie Darnell, City Secretary APPROVED AS TO CONTENT: ancy H y Commun' Developm t Manager APPROVED AS TO FORM: AS:gs/ccdocs/Extension of Agreement-Chatman June 25, 1998... dk July 13, 1998 Resolution No. 4836 May ll, 1995 Item #35 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock an Agreement between Norwest Bank Texas, N.A. and Chatman Memorial Center, Inc. implementing the CDBG New Construction Neighborhood Revitalization Project in the Chatman Hill Neighborhood. 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 this ATTEST: Betty M. Johnson,tity Secretary CONTENT: - y ey s, i ,Housing anehabilitation Coordinator APPROVED AS TO FORM: Linda L. Chamales, Assistant City Attorney }I dp: ccdocs\chacnan. ms May 2, 1995 I� May 11, 1995 Item #35 AGREEMENT STATE OF TEXAS COUNTY OF LUBBOCK § ° This Agreement is entered into this 11 th day of _ May , 1995, by and between CITY OF LUBBOCK (herein called "City'l, NORWEST BANK TEXAS, N.A. (herein called "Norwest"), and CHATMAN MEMORIAL CENTER, INC. (herein called "Chatman"). WHEREAS, the City Council of the City of Lubbock has designated Chatman Hill as a target neighborhood for the 1994-95 Community Development Block Grant (CDBG) funding year; and WHEREAS, the City has approved a New Construction Neighborhood Revitalization Project for the Chatman Hill Neighborhood and has allocated four hundred thousand dollars ($400,000.00) of Community Development Block Grant funds pursuant to the Housing and Community Development Act of 1974, 42 U.S.C. 5301 cL=. and 24 CFR Subtitle A, Part 570; and WHEREAS, Chatman Memorial Center has entered into a contract with the City of Lubbock to manage the CDBG New Construction Neighborhood Revitalization Project in the Chatman Hill Neighborhood (herein called "Revitalization Project"); and WHEREAS, Norwest Bank Texas, N.A. desires to assist the citizens in the Chatman Hill Neighborhood in their revitalization effort by setting aside two million dollars ($2,000,000.00) of mortgage lending funds for this purpose; and WHEREAS, the accomplishment of the above public purpose is the predominate purpose of this transaction. continuing supervision by the City together with statutory and contractual requirements provide sufficient assurance that the public purpose will be accomplished; NOW THEREFORE, it is agreed between the parties hereto that: A. City Responsibilities 1. City agrees to provide Chatman assistance from CDBG Grant funds in an amount not to exceed four hundred thousand and no/100 dollars (400,000.00) as provided in the Community Development Block Grant Between the City of Lubbock and Chatman Memorial Center, Inc. dated August 11, 1994. a copy of which is attached as Exhibit A and incorporated herein as if fully set forth. 2. City and Chatman agree that any provision of the August, 1994, Agreement (attached as Exhibit A) which conflicts with or is made inapplicable by this Agreement between City, Norwest, and Chatman, shall be governed by the new Agreement except that paragraph VI.H. of the August, 1994, Agreement shall remain in effect.. 3. City agrees to provide the services to Chatman listed in Section A 3 of the above described contract (Exhibit A). 4. In addition, City agrees to assist Chatman in determining policies for, qualification of applicants for down payment and closing cost assistance out of the Community Development Block Grant Between the City and Chatman. B. Chatman Responsibilities 1. Chatman agrees to provide the services listed in Section B. of the above described contract (Exhibit A) except those made inapplicable by this Agreement. 2. In addition, Chatman agrees to provide the following services: a. Provide lots to the best of its ability for construction of new homes under the CDBG New Construction Neighborhood Revitalization Project in the Chatman Hill Neighborhood, the lots to be deeded by Chatman to the approved contractor selected by the loan applicant who will construct a residence on the lot or lots in accordance with the requirements and specifications of Chatman and Norwest. b. Develop policies for approving applicants for loan of CDBG funds for down payment and closing cost assistance in the Revitalization Project c. Provide loan/grant assistance from CDBG funds for down payment and closing costs of qualifying applicants who have been prescreened and approved (by the nonprofit agency recommended by Norwest), for long term mortgage loans under the Revitalization Project. Said CDBG loans shall be subordinate to the Norwest mortgage. d. Approve plans, specifications, and contractors for the construction of the new homes. e. Hire an architect and an attorney to advise Chatman Memorial Center in administering this project if necessary. f. Provide all marketing for the project. CTTYlNORWEST/CHATMAN AGREEMENT — Page 2 g. Provide quarterly written progress reports to the Urban Renewal Board and to City beginning 90 days from the date of this Agreement and continuing until Chatman's responsibilities under this Agreement are completed. 3. Approved applicants will execute a Mechanic's Lien Contract and a Mechanic's Lien Note with a Contractor of their choice from a list of contractors fisted with the City of Lubbock as cleared by the Department of Housing and Urban Development and approved by Norwest and Chatman, to construct the residence. 4. Pursuant to such guidelines as Chatman shall from time to time develop and, where appropriate, modify, Chatman shall award loan/grants to qualified applicants in varying amounts, the loan/grants to be used and applied by the applicant to the down payment and closing costs of the new residence purchased by the applicant and constructed by the Contractor, the balance of the purchase price to be financed by Norwest. Applicant shall execute an Agreement and such other documents as maybe required and in form and substance satisfactory to Chatman (and City) acknowledging: a. Receipt of the grant; b. That the grant constitutes taxable income to the applicant; c. That the approved applicant is satisfied with the work as completed by the contractor and that Chatman, City and Norwest bear no responsibility for any negligent acts, defects, faulty work or uncompleted work by the contractor; d. That if the residence is voluntarily sold by the applicant on or before five years from the date of the closing, that the amount of the loan/grant given the applicant by Chatman shall be repaid from the proceeds of the sale in full; e. That if the applicant defaults in the payment of the first lien note causing Norwest to foreclose within the first five years, and if on foreclosure the involuntary sale of the residence brings proceeds in excess of the amount owed Norwest on its note and the costs of sale, the overage shall be paid to Chatman in an amount up to but not exceeding the amount of the loan/grant prior to disbursement back to the applicant; and f Any other provisions as required by Chatman or City. CITY/NORWEST/CHATMAN AGREEMENT — Page 3 5. Notwithstanding the foregoing, the responsibilities and obligations of Chatman under this agreement are expressly limited as follows: a. Chatman shall have no liability, obligation or responsibility whatsoever with respect to the construction of any new home except to within its guidelines award grants to be applied toward the down payment and/or closing costs, all grants to be made within its sole discretion; b. Chatman shall have no responsibility or obligation in any way with regard to the quality of the construction, the material used or the workmanship incorporated into the construction of any home; c. Chatman shall have no responsibility to inspect the progress or quality of the construction of any home and shall in no way be required to render an opinion or certify to Norwest or the City as to the quality of construction or the percentage of completion of construction; d. Chatman shall have no Lability or responsibility, nor is it assuming any liability, for the performance, non-performance or default of any contractor or subcontractor or for any failure of any contractor or subcontractor to construct, complete, protect or insure any home, or for the payment of any cost or expense incurred in connection therewith, nor shall it directly or indirectly guarantee the performance of any obligation of any applicant who receives a grant pursuant to this Project. C. Norwest Responsibilities 1. Norwest agrees to set aside and lend up to a maximum of two million dollars ($2,000,000.00) for interim construction of new homes for qualified applicants under the Revitalization Project. 2. In addition, Norwest agrees as follows in connection with the interim construction financing of new homes for qualified applicants under the Revitalization Project: a. Refer all applicants approved for a first lien mortgage to Chatman with regard to a down payment and closing costs required in order to obtain the first lien mortgage; and b. Make all necessary inspections, as deemed necessary by Norwest, during the construction of each new home; and c. On interim loans, lend up to 80% of the appraised value or sales price of a home, whichever is less, for any approved applicant; and CrrY/NORWEST/CHATMAN AGREEMENT — Page 4 d. On permanent loans, lend up to 97% of the appraised value or sales price of a home, whichever is less, for any approved applicant; and e. In no event shall Norwest be required to provide interim financing for any home that is not presold. All loans made by Norwest pursuant to this agreement, shall be charged a 1% origination fee. Additionally, all such loans shall have a floating interest rate factor equal to 2% per annum plus the prime interest rate announced by Norwest for mortgage loans. 3. Notwithstanding the foregoing, the responsibilities and obligations of Norwest under this Agreement are expressly limited as follows a. Norwest shall have no obligation to fund any interim construction loan until all loan documents required by Norwest have been executed and/or assigned to Norwest, in a form and substance satisfactory to Norwest; and b. Norwest shall only be obligated to make advances or fund the interim construction loan in accordance with a percentage of the completion of the home as determined by Norwest in its sole discretion; and c. Norwest shall have no liability, obligation or responsibility whatsoever with respect to the construction of any new home except to advance the proceeds of the interim construction loan; and d. Norwest shall have no responsibility or obligation in any way with regard to the quality of the construction, the material used, or the workmanship incorporated into the construction of any home; and e. Inspections by Norwest shall relate solely to the percentage of the completion of the home in order to determine whether an advance is appropriate and in no way shall Norwest have the obligation or responsibility to inspect the construction of the residence to determine whether (i) the construction has been performed in a good and workmanlike manner; or (ii) the construction has been performed in accordance with the plans and specifications; and f. Norwest assumes no liability as a result of the inspection of the construction of any home nor is Norwest assuming any liability for the performance or default of any contractor or subcontractor, or for any failure of any contractor or subcontractor to construct, complete, protect or insure any home, or for the payment of any cost or expense incurred in connection therewith, or for the performance or nonperformance of any obligation of any applicant; and CTIY/NORWEST/CHATMAN AGREEMENT — Page 5 g. All loans made by Norwest pursuant to this agreement, shall be subject to and in accordance with the current loan policies and requirements then followed by Norwest. mmm"IUM 1 I:u: This Agreement shall commence May 11, 1995, and shall terminate May 11, 1996. Upon termination of this Agreement, Norwest shall have no further obligation to fund interim construction of homes with regard to the Revitalization Project. The term of this Agreement and the provisions herein may be extended by written agreement of the parties. III. NOTICES Communication concerning this Agreement shall be directed to the following representatives: Juan A. Reyes with copy to: Linda L. Chamales Housing and Rehabilitation Coordinator Assistant City Attorney City of Lubbock City of Lubbock P. O. Box 2000 P. O. Box 2000 Lubbock, Texas 79457 Lubbock, Texas 79457 Harold Chatman, President with copy to: R. Byrn Bass, Jr. Chatman Memorial Center, Inc. HARDING, BASS, FARGASON, & 2316 Date BOOTH Lubbock, Texas 79404 P. O. Box 5950 Lubbock, Texas 79408 Greg K. Garrett with copy to: Mark W. Harmon Norwest Bank Texas, N.A. CRENSHAW, DUPREE & MILAM, P. O. Box 1241 L.L.P. Lubbock, Texas 79408 P. O. Box 1499 Lubbock, Texas 79408-1499 CITY/NOR%T-ST/CHATMAN AGREEMENT — Page 6 IV. GENERAL CONDITIONS A. General Compliance All parties agree to comply with all applicable Federal, State and local laws and regulations governing the funds under this Agreement which were made available under City's Community Development Block Grant. B. Amendments The parties may amend this Agreement at any time provided that such amendments make specific reference to this Agreement and are executed in writing, signed by a duly authorized representative of both organizations and approved by the City Council if required by law. City may, in its discretion, amend this Agreement to conform with federal, State or local governmental guidelines, policies and available funding amounts or for other reasons. If such amendments result in a change in the funding, the scope of services, or the activities to be undertaken as part of this Agreement, such modifications will be incorporated only by written amendment signed by all parties. C. Conflict of Interest All parties agree to abide by the provisions of 24 CFR 570,611 with respect to conflicts of interest, and each party covenants that it presently has no financial interest, direct or indirect which would conflict in any manner or degree with the performance of the services required under this Contract and that no person having such an interest will be employed as or by the subcontractor carrying out this Agreement. CTTY/NORVVEST/CHATMAN AGREEMENT -- Page 7 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. ATTEST: 5 e Mt 1 CH;OLD AN MEMO CENTER, INC. CHATMAN, PRESIDENT APPR AS TO CONTENT: NORWES ANK TEXAS, N.A. Juan es, LAWRENCE, PRESIDENT ,Housing an ehabilitation Coordinator ( ROVED TO FORM: Linda L. Chamales, Assistant City Attorney lldcityatYcd-k-nr. doc April 28, 1995 CITY/NORWEST/CHATMAN AGRM ENT — Page 8 -J-) ,7Jr Item 119 COMMUNTW DEVELOMENT BLOCK GRANT BETWEEN THE CITY OF LUBBOCK AND CHATMAN MEMORIAL CENTER, INC. EXHIBIT STATE OF TEXAS § A COUNTY OF LUBBOCK This Agreement entered into this i i th day of August, 1994, by and between the CITY OF LUBBOCK (herein called -6;;j and CHATMAN hMIORIAL CENTER, INC. (herein called "Grantee'). WHEREAS, the City Council of the City of Lubbock has designated Chatman Fill as a target neighborhood for the 1994-1995 Community Development Block Grant (CDBG) funding year, and WHEREAS, the City has approved a New Construction Neighborhood Revitalization Project for the Chatman (fill Neighborhood and has allocated FOUR HUNDRED THOUSAND DOLLARS ($400,000) of Community Development Block Grant funds pursuant to the Housing and Community Development Act of 1974, 42 U.S.C. 5301 St. IN. and 24 CFR Subtitle A, Part 570; and WHEREAS, the Grantee is a neighborhood based nonprofit corporation offering services to the Chatman Hill Neighborhood of Lubbock; and WHEREAS, Grantee proposes to manage the CDBG New Construction Neighborhood Revitalization Project in the Chatman M Neighborhood; and WHEREAS, the services provided by the Grantee benefit residents of the area and consti- tute a valuable public service; and WHEREAS, the City Council of the City of Lubbock has declared the services provided by the Grantee to be a public purpose; and WHEREAS, the Grantee and the services it provides have been found to meet the aiteria for funding under 24 CFR Subtitle A Part 570.201; and WHEREAS, the accomplisbment of the above public purpose is the predominate purpose of this transaction; continuing supervision by the City together with statutory and cow re- quirements provide suffident assurance that the pubfic purpose will be accompbshed; the Pity Council has found that the Grantee has the special expertise, knowledge cad egxrienc a necessary for the management of the New Construction Neighborhood Revitalization Project and that City will receive adequate consideration in the form of substantial public benefit; and WHEREAS, the City desires to contract with the Grantee to make available assistance for the management of the New Construction -Neighborhood Revitalization Project; NOW THEREFORE, it is agreed between the parties hereto that: I. SCOPE QF SERVICE A. City Responsibilities 1. City agrees to provide Grantee assistance from CDBG Grant funds in an amount not to exceed FOUR HUNDRED THOUSAND AND N0/I00 DOLLARS (S400,000.00) in return for Grantee performing the activities set forth in this Agreement as consideration for said funds. 2. City's financial assistance will be limited to the following: A. The assistance made available through this Agreement shall be used by the Grantee for the purpose of management and new construction in the Neighborhood Revitalisation project for the Chapman MH Neighborhood; and b. No more than ten percent (10%) of the funds actually utilized through this Agreement may be spent for administrative costs. 3. City wM provide the following services: a. Provide Grantee with a copy of the current U. S. Department of Labors wage Determination for inclusion in the bid and contract documents for the construction per; b. Review bid selection process prior to contract award for construction woriq C. Obtain a conumdoes,clearance ► from theDepartment -n of Housing &M Urban Development; • •, 1 r 1 �Y•/�•• Y• • 1 Y• 11 w rl ► 1 1 1 r4511 w(eli � a 1 / r• / ► 1 •'H• r • • • • r 12 1 J61, 'frl It M:I zi 1a r t' and Safety Standards Art, and other applicable federal, state and local labor requirements; c. Monitor contractor's compliance with all labor standards provisions applicable to the Community Development Block Grant Program during construction period and certify on each periodic payment request that all labor standards provisions have been satisfied. B. Grantee's Responsibilities Grantee agrees to use the funds made available through this Agreement solely for the purpose of new construction in the Neighborhood Revitalization Project in the Chatman mill Neighborhood, except that up to ten percent (100%) of the fiends actually utilized through this Agreement may be spent for administrative costs; and 2. Grantee agrees to avad itself of the services of the Lubbock Housing Financing Corporation for assistance in providing the services required by this Agreement; and 3. Grantee agrees to provide written progress reports to the Urban Renewal Board and to City every thirty (30) days beginning thirty (30) days from the date of this Agreement and continuing until Grantee's responsibilities under this Agreement are completed; and 4. Upon completion of this project, if the entire funded amount is not used, Grantee agrees to refund any unused portion to the City within thirty (30) days; and 5. Grantee agrees to work with lending institutions, e.g. banks and/or mortgage finance companies, to secure cow for leveraging available new construction funding and loan servicmg and 6. Grantee agrees to develop designs for horses which are compatible with the Chatman 10 neighborhood and acceptable to area citizens as well as the Urban Renewal Board and also to develop plans to promote the use of neighborhood contractors in participation with residential construction contractors; and 7. Grantee agrees to develop in cooperation with the Housing and Rehabilitation Section of the City of Lubbock, a design for new home purchase loans that will attract homebuyers and stimulate the �� . I I • • I7 :ISKINr r• n7 I7 new housing construction climate in the Chatman Hill neighborhood; and 8. Grantee agrees to develop and implement an Affirmative Fair Marketing Strategy and 9. Grantee agrees to ensure that any funds awarded are used in a manner consistent with CDBG requirements and in strict accordance with any applicable federal, state or local laws; and 10. Grantee agrees to ensure that homes bunt under the construction contract of the project will be constructed in phases to test the marketability of said homes; and 11. Grantee agrees to ensure that any leveraged funds by local banks and/or lending institutions are confirmed by the Urban Renewal Board; and 12. Grantee agrees to solicit for construction work through the competitive bid process which shall include formal advertisement, acceptance of sealed bids, the public opening of those bids, and awarding the construction contract to the lowest responsible bidder if said bidder is eligible for clearance for the Department of Housing and Urban Development; and 13. Grantee agrees that none of the services covered by this Agreement will be subcontracted without the prior written consent of the City; and 14. Grantee agrees to return to the City any program income received or accounts receivable which are attributable to the use of Community Development Block Grant funds; and 15. Grantee agrees to establish homeownership training classes, credit counseling sessions and other appropriate methods of assistance for potential buyers in cooperation with other local agencies; and 16. Grantee agrees, in conjunc don with the Chatman Hill Neighborhood Association, to develop a strategy for making the Chatman Hill community attractive to young farnm with children or of child bearing age through the provision of low to moderate income housing and efforts to make the neighborhood safe and conducive to child rearing and • • 1 1 y •" I �t ti t1' • iy .A '4 F.1 ALk,7 k, I 1 :1 A t t' 17. Grantee agrees to continue to investigate economic and residential development opportunities for the Chatman Kill neighborhood; and 18. Grantee agrees to attend and to participate in all scheduled program training and administrative duties. This Agreement shall com xnce August 11 1994, and shall terminate Audust 11 . 1995. The term of this Agreement and the provisions herein shall be extended to cover any additional time period during which Grantee remains in control of CDBG funds or other assets including program income. M. FAYMENT City will pay to Grantee up to FOUR HUNDRED THOUSAND AND NO/loo DOLLARS (S400,000.00) to Grantee based upon the receipt of requests for funds and project expense summaries for the bidding, contracting and construction costs incurred for the construction of new homes under the CDBG New Construction Neighborhood Revitalization Project in the Chatman Nall Neighborhood. Grantee will make payments in a timely manner to the Contractor. IV. ON TICES Communication and details concerning this Agreement shall be directed to the following contract representatives: Juan A. Reyes Housing and Rehabilitation Coordinator City of Lubbock P. 0. Box 2000 Lubbock, Texas 79457 V. SPECIAL CONDITIONS Harold Chatman President Chatman Memorial Center, Inc. 2316 Date Lubbock, Texas 79404 Grantee agrees to comply with the requirements of Title 24, Code of Federal Regulations, Part 570 of the Housing and Urban Development regulations concerning the CDBG program and all Federal regulations and policies issued pursuant to these regulations. :1• • Zia s •N I A. General Compliance Grantee agree to comply with all applicable. Federal, State and local laws and regulations governing the funds provided under this Agreement which were avail- able under City's Community Development Block Grant. B. Independent Contractor Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties. Grantee shall at all times remain an independent contractor with re- spect to the services to be performed under this Agreement. City shall be exempt from pay of all Unemployment Compensation, FICA, retirement, life and/or medi- cal insurance and Worker's Compensation Insurance as the Grantee is an independent Grantee. C. Hold Harmless Grantee shall hold harmless, defend and indemnify City from any and all claims, actions, suits, charges and judgments whatsoever that arise out of Grantee's per- formance or nonperformance of the services or subject matter called for in this Agreement. D. Workers Compensation Grantee shall carry sufficient insurance coverage to protect contract assets from due to theft, fraud and/or undue physical damage, and as a minimum shall purchase a blanket fidelity bond covering all employees in an amount equal to cash advances from City. E. Insurance and Bonding Grantee shall carry sufficient insurance coverage to protect contract assets fi om loss due to theft, fraud and/or undue physical damage, and as a minimum shall pur- chase a blanket fidelity bond covering all employees in an amount equal to cash advances from City. F. City Recogaition Grantee shall insure ration of the role of City's Community Development Block Grant Program in providing fimcling through this Agreement All activities, facilities and items utilized pursuant to this Agreement shall be prominently labded as to funding source. In addition, Grantee wM include a reference to the support �• t i • a a • �a :! • � r.• r• 7S is provided herein in all publications made possible with funds made available under this Agreement. G. Amendments City or Grantee may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, and area executed in writing, signed ' by a duly authorized representative of both organizations and approved by the City Council if required by law. Such amendments shall not in- validate this Agreement, nor relieve or release City or Grantee from its obligations under this Agreement. City may, in its discretion, amend this Agreement to conform with Federal, State or local governmental guidelines, policies and available funding amounts, or for other reasons. if such amendments result in a change in the funding, the scope of services or the activities to be undertaken as part of this Agreement, such modifi- cations will be incorporated only by written amendment signed by both City and Grantee. H. Suspension or Termination Either party may terminate this Agreement at any time by giving written notice to the other party of such termination and specifying the effective date thereof at least thirty (30) days before the effective date of such termination. Partial termination of the Scope of Service in Paragraph I.B above may only be undertaken with the prior approval of City. In the even of any termination for convenience, all finished or finished documents, data, studies, surveys, maps, models, photographs, reports, or other materials prepared by Grantee under this Agreement shall at the option of the City, become the property of City, and Grantee shall be entitled to receive just and equitable compensation for any satisfactory work completed on such docu- ments or materials prior to the termination. City may also suspend or terminate this Agreement, in whole or in part, if Grantee materially fads to comply with any term of this Agreement, or with any of the rules, regulations, or provisions referred to herein, and the City may declare the Grantee ineligible for any further participation in City contracts, in addition to other remedies as provided by law. In the event there is probable cause to believe Grantee is in noncompliance with any applicable rules or regulations, City may withhold up to fifteen percent (1 S'/9) of said Contract fimds until such time as Grantee is found to be in compliance by City or is otherwise adjudicated to be in compliance. CONY DEVELOE' OM BL= GRAW AGREEMDrr cHAT m" mimokm cEwnE i, 2c. — PAGE 7 VII. ADMINISTRATIVE REQUIREMENTS A. Financial Management 11000F.M.-MIL. _ • Grantee agrees to comply with Attachment F of OMB Circular A-110 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. Grantee shall administer its program in conformance with OMB Circular A-122, 'Cost Principles for Nonprofit Organizations,' or A-21, 'Cost Principles for Educational Institutions,' as applicable, for all costs incurred whether charged on a direct or indirect basis. B. Documentation and Record -Keeping 1. Records to be Maintained Grantee shall maintain all records required by the federal regulations speci- fied in 24 CFR 570.506, and that are pertinent to the activities to be funded under this Agreement. 2. Retention Grantee shall retain all records pertinent to expenditures incurred under this Agreement fora period of three (3) years after the termination of all activi- ties fuunded under this Agreement, or after the resolution of all Federal audit findings, whichever occurs later. Grantee shall maintain client data demonstrating client eligibility for sere - ices provided. Such data shall mciude, but not be bated to, client name, address, income level other basis for deter digibtlq and description of service provided Such information shall be made available to City monitors or their designees for review upon request. M, • MI All Grantee records with respect to any matters covered by this Agreement shall be made available to City, their designees or the Federal Government, at any time during normal business hours, as often as City deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by Grantee within thirty (30) days after receipt by the Grantee. Failure to comply with the above audit requirements will constitute a violation of this Agreement and may result in the withholding of future payments. VM. PERSONNEL AND PARTICIPANT CONDITIONS A_ CW0 Rights 1. CoWliance Grantee agrees to comply and to require all subcontractors to comply with Title VI of the Civil Rights Act of 1964, as amended, Title VM of the Civil Rights Act of 1968, as amended, Section 109 of Title I of the Housing and Community Development Act of 1974, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age of Dis- crimination Act of 1975, Executive Order 11063, and with Executive Order 11246, as amended by Executive Orders 11375 and 12086. 2. Land Covenants This Agreement is subject to the requirements of Tale VI of the Civil Rights Act of 1964 and 24 CFR 670 Part I. In regard to the sale, lease, or other transfer of land acquired, cleared or improved with assistance pro- vided under this Agreement, Grantee shall cause or require a covenant running with the land to be inserted in the deed or kale for such transfer, prohibiting discrinnination in the sale, lease, or rental, or in the use or occu- pancy of such land, or in any .mprovements erected or to be erected thereon, providing that the City and the United States are beneficiaries of and entitled to enforce such covenants. Grantee also agrees to take such measure as are necessary to enforce such coveaa•at and will not itself so discriminate. B. Employment Restrictions 1. Labor Standards Grantee agrees to comply and require all subcontractors to comply with the requirements of the Secretary of Labor in accordance with the Davis - Bacon Act, as amended, the provisions of Contract Work Hours, the Safety Standards Act, the Copeland "Anti -Kickback" Act and all other applicable Federal, State and local laws pertaining to labor standards izL far as those acts apply to the performance of this Agreement. Grantee will maintain documentation which demonstrates compliance with hour and wage requirements of this part; this documentation shall be made available to the City to the City for review upon request. Grantee agrees that all contractors engaged under contracts in excess of TWO THOUSAND AND N01100 DOLLARS (S2,000.00) for construc- tion, renovation or repair of any building or work financed in whole or in part which assistance provided under this Agreement shall comply with Federal requirements adopted by the City pertaining to such contracts and with the applicable requirements of the regulations of the Department of Labor under 29 CFR Parts 1, 3, S and 7 governing payment of wages and ratios of apprentices and trainees to journeymen; provided, that if water rates higher than those required under the regulations are imposed by State or local law, nothing hereunder is intended to relieve Grantee of its obliga- tion, if any, to require payment of the higher wage. Grantee shall cause or require to be insured in frill, in all such contracts subject to such regulatooq provisions meeting the requirements of this paragraph for contracts in excess of TEN THOUSAND AND N01100 DOLLARS (S10,000.00). 2. "Section 3" Clause Grantee agrees to comply with the provisions of Section 3 and to include the following clause in a1I s;- matrads executed under this Agreement: "The Work to be performed under this Contract is a project assisted under a program providing direct federal finance assistance from HUD and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended Section 3 requires that to the greatest extent feasible opportunities for training and employment be given to lowar income residents of the project area and contracts for work in connection with the project be awarded to business concerns which are located m or owned in mAntantial part by persons residing in the areas of the Project-" C. Conduct I. Prohibited &qb& Grantee is prolubited from using fiords provided herein or personnel employed in the administration of the program for political activities; sec- tarian, or religious activities; lobbying, political patronage, and nepotism. Grantee and City agree to abide by the provisions of 24 CFR 570.611 with respect to conflicts of interest, and Grantee covenants that it presently has no financial interest, direct or indirect, which would conflict in any manner or degree with the performance of the services required under this Contract and that no person having such an interest will be employed as or by the subcontractor carrying out this Agreement. TX. ENVIRONMENTAL CONDITIONS A. Air and Water Grantee agrees to comply with the following regulations insofar as they apply to the performance of this contract: Clean Air Act, 42 U.S.C. 1857, 9. M., Federal Water Pollution Control Act, as amended 33 U.S.C. 1251, !9. M. and all regula- tions and guidelines issued thereunder, Environmental Protection Agency (EPA) regulations pursuant to 40 CFR Part 50, National Environmental Policy Act* of 1969, and HUD Environmental Review Procedures (24 CFR Part 58). B. Flood Disaster Protection Grantee agrees to comply with the requirements of the Flood Disaster Protection Act of 1973 in regard to the sale, lease, or other transfer of land acquired, cleared or improved under the terms of this Agreement, as it may apply to the provisions of this Agreement. C. Lead -Based Paint Grantee agrees that any construction or rehabilitation of residential structure with assistance provided under this contract shall be subject to HUD Lead -Based Paint Regulations at 24 CFR 570.608 and 24 CFR Part 35 and in particular Sub -part B thereof Such regulations pertain to all HUD assisted housing and require that all owners, prospective owners, and tenants or properties constructed prior to 1978 be property notified that such properties may include lead4xsed paint. Such �� . � i � a a • . �a � � «' r• r• 7a. �7 notification shalt point out the hazards of lead -based paint and explain the symp- toms, treatment and precautions that should be taken when dealing with lead -base paint poisoning rN wrT'KTPQc wuMAPnF tho PoftiCs have executed this Agreement as of the date first CHA MM CENTER, INC.. HAR LD CHATMAN, PRESIDENT A7"1 bJ 1: ousing ehabilitation Coordinator TO FORM: Linda L. Chamales, Assistant City Attorney UX-p CHA'IMAN.DOC LRT Disc CONOAUNIIY DEVELOPMENT BLOCK GRANT AGREIINCWt CHATMAN MEMORIAL CYN EFL, INC. -- PAGE 12 STATE OF TEXAS )( )( EXTENSION OF AGREEMENT COUNTY OF LUBBOCK )( On May 11, 1995, the CITY OF LUBBOCK ("the City"), NORWEST BANK TEXAS, N.A. ("Norwest") and CHATMAN MEMORIAL CENTER, INC. ("Chatman") entered into an Agreement whereby the City agreed to provide Chatman funds not to exceed $400,000.00 as provided in the Community Development Block Grant between the City of Lubbock and Chatman Memorial Center, Inc. which was dated August 11, 1994 and attached to the May 11, 1995 Agreement ("the Agreement"). In the Agreement, Norwest agreed up to $2,000,000.00 for interim construction of new homes in the Chatman Hill neighborhood. The Agreement provided for a May 11, 1996 expiration date. The City, Norwest and Chatman desire to extend the term of the Agreement - - and otherwise ratify the other terms and conditions set forth therein. Accordingly, for mutual consideration, the receipt and sufficiency for which is hereby acknowledged, the City, Norwest and Chatman hereby agree as follows: 1. The Agreement dated May 11, 1995 expiring May 11, 1996 shall be, and hereby is, extended for another two (2) years and shall now expire May 11, 1998. 2. The parties hereto otherwise ratify and confirm all of the other terms and conditions set forth in the Agreement. Dated May 11, 1996. CHATMAN EMORIAL CEN R, INC. By: /.,), 14, Harold Chatman, President NORWES BBA TEXAS, By: Gary Lawrence, President Extension of Agreement Page 1 bass/chatman/ext-agr ATTEST: APPROVED AS TO FORM: Amy W Assistant ity Attorney Extension of Agreement bass/chatman/ext-agr Page 2