COMMUNITY HOUSING DEVELOPMENT ORGANIZATION PROCEEDS AGREEMENT
CITY OF CLEARWATER, FLORIDA
AND
CLEARWATER NEIGHBORHOOD HOUSING SERVICES, INe.
COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO)
CHDO PROCEEDS AGREEM:ENT
THIS CHDO PROCEEDS AGREEMENT ("Agreement") dated March 1, 2006,
by and between the City of Clearwater, Florida, a municipal corporation existing by and
under the laws of the State of Florida, herein after referred to as the "City", and
Clearwater Neighborhood Housing Services, Inc., a not-for-profit corporation
organized under the laws of the State of Florida, herein after referred to as the "CNHS":
WHEREAS, the City is the recipient of a HOME Investment Partnership Program
(HOME) Grant from the U.S. Department of Housing and Urban Development (RUD)
pursuant to Title II of the Cranston-Gonzalez National .Affordable Housing Act of 1990,
as amended, 42 U.S.c. 12701 et seq. (HOME Program), codified and implemented by 24
CPR Part 92; and
WHEREAS, under the provisions of the Act, the City is required to set-aside at
least 15% of its HOME Investment Partnership Program entitlement allocation to
organizations that meet the requirement for Community Housing Development
Organizations (CHDO), as specified by the HOME Program, for the CHDO to own,
develop or sponsor housing for families at or below 80% of the area median income; and
WHEREAS, CNHS has met the requirements established by the federal
government and has been certified! as a CHDO by the City, pursuant to the National
Affordable Housing Act of 1990, as amended; and
WHEREAS, the City and CNHS desire to sign the Agreement which sets forth
the uses of the CHDO Proceeds that will be received by CNHS from the use of HOME
CHDO funds to develop safe, decent and affordable housing; and
WHEREAS, the City and CNHS have entered into a CHDO Agreement ("CHDO
Agreement") dated September 1, 2005, outlining all of the City and federal rules and
regulations;
NOW THEREFORE, in consideration of the promises and covenants contained
herein, the parties hereto agree as follows:
PART I - SPECIFIC USES AND RESTRICTIONS
A. Source and Use of Funds
1. Sources of Funds:
The source of CHDO Proceeds shall be the HOME Investment Partnership
Program entitlement provided to the City by HUD. CNHS agrees that in the event
that the City's HOME Investment Partnership Program entitlement is discontinued,
the City may, at its option, request that any CHDO Proceeds funds held by CNHS,
be returned to the City. In the event the HUD determines that the City or the
CNHS have not fulfilled their obligation under the HOME Investment Partnership
entitlement requirements, or the City determines that CNHS has not fulfilled its
obligation under the HOME Investment Partnership Program requirements, and/or
HUD or the City demands reimbursement of expenses paid under this Agreement,
CNHS shall provide said reimbursement from non-federal sources within ten day of
said notice from City.
2. Use of Funds:
In consideration of HOME Investment Partnership Program entitlement funding
allocated by the City, CNHS shall operate the programs and specific activities
described below under section (b). CNHS shall utilize its HOME CHDO allocation
as an owner-developer to provide housing for families at or below 80% of the area
median income in accordance with policies established by HUD and therefore shall:
a. CHDO Proceeds: Any HOME CHDO construction loan funds that are
repaid to CNHS, as a result of a home being sold that was finance in part,
or whole, with HOME CHDO funds, shall be considered CHDO Proceeds,
and shall not be returned to the City.
b. HOME CHDO funds, and CHDO Proceeds, provided to CNHS under the
CHDO Agreement, will be used for: construction, demolition, acquisition
of real property, acquisition/rehabilitation of real property, developers fees,
and other predevelopment costs, or other costs as approved by the City.
Funds may not be used for such items as: capital equipment purchases,
travel and training, and operating expenses.
c. All homes, and all construction and down payment assistance loans,
assisted through the funds covered under this agreement shall have a
recorded Land Use Restriction Agreement (LURA) and/or the Restrictive
Covenants as an exhibit to the loan docs.
d. CHDO Proceeds funds must be used by CNHS for HOME eligible
activities, unless otherwise stated in their CHDO Agreement.
e. The CHDO Proceeds from the original $88,902 CHDO allocation may be
used by CNHS to support the operations of their organization. All other
CHDO Proceeds must be deposited in the CHDO Revolving Loan Fund
described below.
f After a period of five (5) years, CNHS may use any remaining CHDO
Proceeds for households who are above 80% Area Median Income (AMI),
but no greater than 120% AMI.
3. Reporting & Monitoring:
The City has the right to monitor and evaluate all aspects of activities carried out
by CNHS. Such evaluation will be effected by the submission of reports and
information by CNHS and monitoring visits of CNHS by City. The City will
conduct biannual monitoring/site visits throughout the current contract year.
Contractual requirements related to inspections, reports, and records include, but
are not limited to:
a. Program Records. CNHS shall maintain monthly bank statement of
CNHS's HOME Account, records, reports, data and information as may be
required by HUD in 24 CFR Part 92.508 or the City pertaining to matters
of this Agreement.
b. Proiect Files: CNHS shall maintain accurate individual project files with
detailed records of each property, including:
1. Acquisition, construction or renovation costs and operating costs
attributed to a project, identifying direct assistance funded through
the HOME Investment Partnership fund, CHDO Proceeds, project
revenue or other sources;
11. A copy of the executed note and mortgage on the property;
111. Set-up/Completion reports on the property. Completion reports
must be submitted to the City within sixty (60) days of
rehab/construction and lease-up completion.
IV. CNHS's annual report verifying ownership and household income
for each completed HOME Investment Partnership entitlement
assisted unit throughout the affordable term; and
v. Documentation substantiating compliance with Equal Opportunity,
Fair Housing and Affirmative Marketing, and other contractual
requirements. CNHS shall maintain a summary of this information
and shall submit this information to City upon request. These
records shall also be made available to HUD and/or representatives
of the Comptroller General of the United States for audit,
inspection or copying purposes during normal business hours.
c. Activities Report: CNHS must report to the City on a quarterly basis
(October 15\ January 15\ April 15\ and July 15t), a detailed accounting of the
use of the CHDO Proceeds and CHDO Revolving Loan Fund. The report
must summarize the HOME CHDO Proceeds funded, and other low-
income housing activities during the previous month and also during the
fiscal year-to-date. This report shall detail property acquisition,
rehabilitation project status, sale of property, CHDO Proceeds and
description of the fund activity in CNHS' s HOME account.
d. Records Retention: CNHS shall retain all records pertaining to this
Agreement, including but not limited to financial, statistical, property and
programmatic records, for five (5) years from the last day of the City's
fiscal year (September 30th) in which this Agreement expires, five years
after the affordability period or is terminated. All records, however that
are subject to audit findings shall be retained for five (5) year in the manner
prescribed above or until an ongoing audit is completed and all issues
raised by the audit are resolved, whichever is later. Nothing herein shall be
construed to allow destruction of records that may be required to be
retained longer by federal, state or local law. These records shall also be
made available to HUD and/or representatives of the Comptroller General
of the United States for audit, inspection or copying purposes during
normal business hours.
4. CHDO Proceeds Revolving Loan Fund
After the reimbursement of the $300,000 from the City, CNHS will use CHDO
Proceeds, which must maintained in a separate banking account - designated as
"CHDO Proceeds Revolving Loan Fund", to fund future HOME eligible activities.
If there are insufficient funds, in the HOME CHDO revolving loan fund, to fund
subsequent eligible activities, CNHS may request additional HOME CHDO funds
from the City. Funds that are received by CNHS, resulting from the sale of homes,
that are above the HOME construction loan amounts, shall be retained by CNHS,
for use as they desire and not subject to the HOME program rules and regulations.
The funds will be expended in accordance with the terms and conditions of the
CHDO Agreement. Funds reserved for CNHS may increase or decrease, subject to
production standards.
5. Term of Agreement
This agreement shall remain in effect as long as CNHS has control of the CHDO
Proceeds in the CHDO Proceeds Revolving Loan Account. The City may
terminate this Agreement if it determines that CNHS has used CHDO Proceeds for
ineligible activities under the HOME Program and/or for activities that are not
mentioned in Section A(2)(b) above.
IN WITNESS WHEREOF. the parties hereto have caused this Agreement to be executed by
their duly authorized officials on the day and date first above indicated.
Clearwater Neighborhood Housing
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Date
ATTEST:
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Secretary
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Date
Countersigned:
CITY OF CLEARWATER,
FLORIDA
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'Pf'ank v. Hibbard .
Mayor-Councilmember
By:
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William B. Home, II
City Manager
Approved as to form:
Attest:
3J.~.o~
D.Ruff '
Assistant City Attorney