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PROGRAM YEAR 2018 SUBRECIPIENT AGREEMENTPROGRAM YEAR 2018 SUBRECIPIENT AGREEMENT BY AND BETWEEN CITY OF CLEARWATER AND TAMPA BAY COMMUNITY DEVELOPMENT CORP. This agreement is entered this 10 day of , 2018 by and between the City of Clearwater, hereafter designated as "City" and Tampa Bay Community Development Corp., hereafter designated as "TBCDC" and WHEREAS, the City has applied for and received HOME Investment Partnership Program funding (hereafter designated as HOME) from the Department of Housing and Urban Development; and WHEREAS, TBCDC has applied for and been approved to utilize HOME Program funds for Down Payment Assistance Services; and WHEREAS, TBCDC has evidenced the capacity to provide down payment assistance services funded by this agreement and is located within the city limits of the City of Clearwater, Florida; and WHEREAS, on August 2, 2018, the City Council authorized the City Manager to execute an agreement with TBCDC to provide Down Payment Assistant Services utilizing $15,000 in HOME funds to assist fifteen (15) homebuyers within the city limits of the City of Clearwater, Florida. NOW THEREFORE, the City and TBCDC hereby execute this agreement to undertake the described Down Payment Assistance Services. FURTHERMORE, the City and TBCDC agree as follows: SCOPE OF SERVICE A. TBCDC shall qualify fifteen (15) eligible, low-income homebuyers within the city limits of Clearwater, Florida. B. TBCDC shall affirmatively market this program to eligible, low-income, homebuyers. Low-income is defined as having income at or less than eighty percent (80%) of median family income, as determined by the guidelines issued by the Department of Housing and Urban Development, adjusted for family size, based on the total current annual household incomes. The current income levels for Clearwater are contained in Exhibit C. TBCDC shall complete the project within one year from the date this agreement is executed, unless a time extension is requested by TBCDC in writing and granted by the 1 City in writing. Any such time extension shall be attached to and made a part of this agreement. D. TBCDC shall accomplish the contracted activities in program year 2018 (October 1, 2018 through September 30, 2019). PROJECT FUNDING TBCDC — Down Payment Assistance Services A. The City of Clearwater hereby approves HOME Program funding for Down Payment Assistance Services in the amount of $15,000 from 2018 HOME Program funds. As a subrecipient, TBCDC will provide outreach and marketing, intake and processing of fifteen (15) downpayment and closing cost assistance loans for qualified, low-income homebuyers who purchase homes in the city limits of Clearwater on behalf of the City of Clearwater. B. Requests for Disbursements & Program Income - TBCDC shall ensure HOME funds provided under this agreement will be requested for disbursement only in required amounts and as needed for payment of eligible costs. Payments will be made by the City for down payment assistance services when a loan is processed through TBCDC and closes. The City will compensate TBCDC One Thousand Dollars and 00/100 ($1,000.00) per successful loan closure. The City reserves the right to liquidate funds available under this agreement for eligible costs incurred by the City on behalf of TBCDC to complete the project. C. Homebuyer income qualification, underwriting and layering guidelines - TBCDC shall determine each family is income eligible by determining the family's annual income. All Income and Assets must be verified, in writing. To be eligible for assistance, the Borrower's total current combined gross annual household income from all sources cannot exceed the limits set by HUD for Tampa -St Petersburg -Clearwater, FL MSA (Exhibit A). TBCDC shall use a minimum of two consecutive months of income documentation to project the prevailing rate of income of the family at the time of determination of income eligibility. Total household income is the total current, annualized gross income, before taxes and withholding, of the purchaser and all adult members, over the age of 17, residing or intending to permanently reside in the residence. This includes a spouse, fiance, parent, relative, adult child, etc. D. The full amount of HOME funds, $15,000, from the HOME Program, shall be released as earned by verified performance of activities to be completed under this agreement, as determined by the City of Clearwater. 2 E. It is expressly agreed and understood that the total amount of down payment assistance processing services shall not exceed $15,000 from the 2018 HOME Program. TBCDC will be awarded $1,000 per down payment assistance loan processed. F. If for any reason, any term of this agreement is breached by TBCDC, the City may require full repayment of any amounts advanced under this agreement pursuant to Section VIII, Remedies of Default. III AFFORDABILITY A. As required by 24 CFR 92.254, down payment assistance processing services with funding provided under this agreement, shall be affordable to low-income persons for an applicable period of affordability as required as HOME Program regulations. If the housing does not meet the applicable affordability requirements for the specified time period for any reason whatsoever, full repayment to the City of Clearwater of all HOME funds invested in the project will be required according to the repayment terms set forth in Section VIII of this agreement. TBCDC shall ensure affordability of the housing through HUD -approved recapture provisions and deed restrictions, or through other HUD -approved mechanisms. B. The applicable period of affordability shall be determined by the per unit net HOME investment as follows: 1) less than $15,000 - five (5) years and 2) $15,000 to $40,000 - ten (10) years. C. TBCDC shall ensure that the purchase price paid by the low-income homebuyer does not exceed $190,000 for existing home and $228,000 for new construction or as updated by HUD. IV. MINIMUM HOUSING STANDARDS A. All affordable housing purchased with HOME funds provided under this agreement shall meet Minimum Housing Standards (MHS). The City of Clearwater has contracted with a third party vendor to perform the required inspections to ensure compliance. B. The City of Clearwater reserves the right to inspect at any time during normal business hours any and all homebuyer purchases accomplished under this agreement to assure adherence to applicable Minimum Housing Standards. V NOTICES Communication and details concerning this agreement shall be directed to the following persons: 3 VI A. City of Clearwater Chuck Lane, Assistant Director 112 S. Osceola Avenue Clearwater, FL 33756 Tampa Bay CDC Michael Bauer, President & CEO 2139 NE Coachman Road, Ste #1 Clearwater, FL 33765 The contact persons listed above may be changed upon fifteen (15) days written notice to the other party. SPECIAL CONDITIONS The subrecipient shall adhere to the Underwriting Guidelines for Homebuyers in the City of Clearwater Policies and Procedures Manual. The client file shall be forwarded to the City for review and approval no later than ten (10) business days prior to closing. The City shall review and approve the closing disclosures from the first mortgage lender. VII ADMINISTRATIVE REQUIREMENTS A. TBCDC shall abide by all applicable federal, state, and local laws, regulations, codes, and ordinances in the performance of all activities required by this agreement, and specifically agrees to adhere to applicable requirements of 24 CFR 92, Final Rule at https://www.hudexchange.info/programs/home/home-final-rule/ dated September 16, 1996 (updated December 22, 2004 and amended on July 24, 2013) including those described in 24 CFR 92 Subpart "H" with the exception of Environmental Reviews which TBCDC cannot assume and 92.357 the intergovernmental review process does not apply. TBCDC shall comply with the City of Clearwater HOME Regulations and the City of Clearwater Policies and Procedures Manual dated June 9, 2017 throughout the term of this agreement (and any future revisions) which is also available on the website at www.mvclearwater.com/housing. B. TBCDC shall submit an agency -wide audit which shall include the project funds annually. The audit shall be in accordance with generally accepted accounting principles. TBCDC shall provide the City with one (1) copy of each annual audit for project duration. Any deficiencies noted in the audit report shall be fully cleared by TBCDC within thirty (30) days after receipt of said audit report by the City. Failure of TBCDC to clear deficiencies noted in the audit report shall be a breach of this agreement and the City may exercise any and all of its rights and remedies under Section IX, Remedies on Default. C. TBCDC shall adhere to the requirement of 2 CFR 200 Subpart E — Cost Principles, 24 CFR Part 84 and applicable administrative requirements of 24 CFR 92.505. 4 D. TBCDC shall make available to the City at any time during normal business hours all records pertaining to funding and projects covered by this agreement to allow the City to conduct monitoring, performance, and compliance reviews and evaluations. Notwithstanding any other provision in this agreement, the City will monitor the performance as determined by the City and shall determine if the performance constitutes non-compliance with this agreement. If action to correct such substandard performance is not taken by TBCDC within a reasonable time -frame to be specified by the City in its notice to TBCDC, suspension or termination procedures may be initiated as specified in Section VIII, Section IX or Section X. E. TBCDC covenants that it presently has no financial interest and will not acquire any interest directly or indirectly, which would conflict in any manner or degree with the performance of services required under this agreement. TBCDC further covenants that in the performance of this agreement, no person having such a financial interest shall be employed or retained by TBCDC hereunder. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer, elected official, or appointed official of the City, or of any designated public agencies or subrecipients which are receiving funds under the HOME Entitlement Program. F. TBCDC shall ensure that no person will be displaced from his or her dwelling as a direct result of activities assisted with HOME Program funds provided under this agreement. G. Affirmative Marketing - TBCDC shall affirmatively market all housing units developed under this agreement to low-income persons in compliance with Public Laws 88-352 and 90-284 and ensure maintenance of documentation of affirmative marketing efforts to such persons. Prior to any funds being disbursed under this agreement, TBCDC shall provide an affirmative marketing plan acceptable to the City documenting the affirmative marketing efforts to low-income persons planned to be undertaken by TBCDC regarding this project. H. TBCDC shall not pay any part of funds received under this agreement for lobbying the Executive or Legislature Branches of the federal, state, or local government. Environmental - TBCDC shall comply with the provisions of the National Environmental Policy Act of 1969, as applicable to projects funded under this agreement, the Flood Disaster Protection Act of 1973, and the Lead -Based Paint Poisoning Prevention Act and the regulations promulgated thereunder, all as amended. TBCDC agrees to assist the City to comply with the following regulations insofar as they apply to the Environmental Protection Agency regulations pursuant to 40 CFR 50, HUD Environmental Review Procedures specified in 24 CFR 58, as well as all other applicable environmental laws and regulations, all as amended. The City shall ensure maintenance of documentation to 5 evidence compliance with environmental statutes and regulations with the assistance of TBCDC. J. TBCDC shall establish and ensure the eligibility of purchasers of housing purchased under this agreement with regard to low-income homebuyer requirements specified by the Department of Housing and Urban Development. In addition, TBCDC shall ensure maintenance of beneficiary information regarding persons assisted under this agreement, including name, address, social security number, race, sex, income, and whether the assisted person(s) is elderly, female head -of -household, handicapped, American Indian, Hispanic, Caucasian, African American, Alaskan Native, Asian Or Asian/Pacific Islander. TBCDC shall ensure the submission of the beneficiary information to the City upon each loan closure. The information shall be maintained for each housing unit and person(s) or families assisted under this agreement. K. TBCDC shall provide drug-free workplaces in accordance with the Drug -Free Workplace Act of 1988. L. TBCDC shall ensure compliance with all requirements of the Contract Work Hours and Safety Standards Act, the Copeland Anti -Kickback Act, and all other applicable federal, state, and local laws and regulations pertaining to labor standards. TBCDC shall ensure maintenance of adequate records and reports to evidence such compliance. M. Records Retention - TBCDC will ensure that all records required under this agreement are retained for a period of seven (7) years after the applicable required period of affordability. TBCDC shall furnish, and cause all its subcontractors to furnish, all reports and information required hereunder, and will permit access to its books, records, and accounts, by the City, the Department of Housing and Urban Development or its agent, or other authorized federal officials for purposes of investigation to ascertain compliance with the statutes, rules, regulations, and provisions stated herein. N. OSHA - TBCDC shall ensure that where employees are engaged in activities not covered under the Occupational Safety and Health Act of 1970, they shall not be required or permitted to work, be trained in, or receive services in buildings or surroundings, or under working conditions, which are unsanitary, hazardous, or dangerous to the participants' health or safety. O. Equal Opportunity - TBCDC shall comply with Executive Order 11063, as amended by Executive Order 12259, and shall not discriminate against persons on the basis of race, color, creed, religion, ancestry, national origin, sex, disability or other handicap, age, marital or familial status with regard to public assistance. TBCDC shall maintain records and documentation to evidence compliance with this requirement. TBCDC shall take 6 affirmative action to ensure that all employment practices are free from such discrimination. Such employment practices include, but are not limited to, the following: hiring, upgrading, demotion, transfer, recruitment, advertising, layoff, termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. TBCDC agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting agency setting forth the provisions of this nondiscrimination clause. P. Civil Rights - TBCDC shall comply with Title VIII of the Civil Rights Act of 1968, as amended, Section 109 of Title 1 of the Housing and Community Development Act of 1974, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, and the Age Discrimination Act of 1975, along with all applicable regulations associated therewith. Q. TBCDC agrees that funds received under this agreement will not be utilized for religious activities, to promote religious interests, or for the benefit of a religious organization. R. Reversion of Assets - Upon expiration or termination of this agreement, TBCDC shall transfer to the City of Clearwater any HOME funds on hand at the time of said expiration or termination and any accounts receivable attributable to the use of HOME funds. VIII DEBARMENT AND SUSPENSION TBCDC certifies that its principals: A. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation from covered transactions by any federal department or agency; B. Have not within a three (3) year period preceding this agreement been convicted of or had a civil judgment rendered against them for commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statement(s) or receiving stolen property; C. Are not presently indicted for or otherwise criminally charged by a governmental entity (federal, state or local) with commission of any of the offenses enumerated above, and; D. Have not within a three (3) year period preceding this agreement had one (1) or more public transactions (Federal, State or local) terminated for cause or default. 7 IX REMEDIES ON DEFAULT Each of the parties shall have all remedies available under applicable regulations or at law or in equity, including specific performance, to enforce any obligation of any Party to the Agreement. In the event the City determines that a breach of this agreement has occurred, the City may terminate this Agreement pursuant to 24 CFR Part 200 and recapture or terminate any and all HOME funds allocated under this Agreement. More specifically: A. If the City determines that TBCDC has materially failed to comply with any provision of this agreement, or with any rules, statutes, regulations, or ordinances referred to herein, the City will notify TBCDC in writing and hand -deliver, with written receipt evidencing the date and time of delivery, or send by certified mail, return receipt requested, such Notice of Default to the party designated to receive such Notices in Section V of this agreement. For purposes of this section, the term materially means "an important or essential term of this agreement." B. The City will allow TBCDC the opportunity to demonstrate compliance with the agreement requirements in question. TBCDC shall offer evidence of such compliance within a reasonable time frame to be specified by the City in the Notice of Default. Substantial compliance shall not constitute compliance with the terms and conditions of this agreement unless the City expressly agrees to the substantial compliance in writing. C. If TBCDC fails to demonstrate to the City that it has fulfilled the requirement, the City may take corrective or remedial action(s) as follows: 1) Corrective or remedial action will be designed to prevent a continuation of the deficiency, mitigate any adverse effects, and prevent recurrence of the deficiency. 2) Corrective or remedial action may include: a. Temporarily withholding cash payments pending correction of the deficiency by TBCDC. b. Specific activities required by the City to correct the deficiency and to be accomplished by TBCDC in a specified time frame. c. Canceling or revising activities which may be affected by the performance deficiency and were approved under this agreement. d. Reprogramming any balance of HOME funds made available under this agreement from deficient activities, or any activity funded under this agreement, 8 to other eligible activities. e. Suspension of HOME fund disbursements for deficient activities, or any activities funded under this agreement and subsequent termination of this agreement in its entirety. f. Termination of this agreement in its entirety and require TBCDC to repay to the City any and all HOME funds advanced under this agreement. g. Removing TBCDC from participation in any future allocation of HOME funds from the City. h. Taking other remedial actions that may be legally available to the City. D. In the event TBCDC dissolves the organization, ceases to exist, or becomes unable for any reason to fulfill its obligations under this agreement, the City will require TBCDC to fully repay to the City any and all amounts advanced under this agreement. E. Notwithstanding any other provision of this agreement, should there be any fraud, misrepresentation, embezzlement, or any other criminal activity associated with this project, the City may pursue all legal and equitable remedies available to it against any and all parties associated with this agreement. F. Any decision regarding corrective, remedial, legal or equitable remedies or actions to be taken regarding this agreement or project shall be at the sole option and discretion of the City of Clearwater. A decision by the City to pursue one course of action shall not constitute a waiver of any other course of action the City may pursue under this Section IX, Remedies on Default. G. Pursuant to 24 CFR 92.205(e), should this agreement be terminated before completion of this project, either voluntarily or otherwise, TBCDC shall repay any HOME funds invested in,the project that is the subject of this agreement to the City of Clearwater's HOME Investment Trust Fund in accordance with 24 CFR 92.503(b). X TERMINATION A. Pursuant to 24 CFR Part 200, the City may terminate this agreement upon thirty (30) days prior written notice to the TBCDC contact person indicated in Section V of this agreement. The parties shall agree upon the termination conditions, including the effective date of termination, and in the case of partial termination, the portion of the award to be terminated. 9 B. TBCDC may terminate this agreement upon thirty (30) days prior written notice to the City contact person indicated in Section V of this agreement. The notice of termination shall set forth the reasons for such termination, the effective date of termination, and in the case of partial termination, the portion of the award to be terminated. However, in the case of partial termination, if the City determines that the remaining portion of the funding provided under this agreement will not accomplish the purposes for which the award was made, the City may terminate the award in its entirety under paragraph A of this section, Section IX, or 24 CFR Part 200. XI MISCELLANEOUS PROVISIONS A. The officials who executed this agreement hereby represent and warrant that they have full and complete authority to act on behalf of the City and TBCDC, respectively, and that their signatures below, the terms and provisions hereof, constitute valid and enforceable obligations of each. B. This agreement shall be executed in the original, and any number of executed copies. Any copy of this agreement so executed shall be deemed an original and shall be deemed authentic for any other use. C. The parties may amend or modify this agreement at any time, provided that such amendment(s) or modification(s) make specific reference to this agreement, and are executed in writing by a duly authorized representative of both parties. Such amendment(s) or modification(s) shall not invalidate this agreement, nor relieve or release the parties from their obligations under this agreement. D. The terms and conditions of this agreement shall be binding upon the parties hereto, their respective heirs, executors, administrators, successors and assignees. E. Nothing contained in this agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer and employee between the parties. TBCDC shall at all times remain an independent contractor with respect to the services to be performed under this agreement. F. TBCDC shall not assign or transfer any interest in this agreement without the prior written approval of the City. G. This agreement shall be construed according to the laws of the State of Florida. H. Should any part, term or provision of this agreement, or portions thereof, be 10 determined by a court of competent jurisdiction to be illegal, void or unenforceable, the validity of the remaining portions of provisions shall not be affected thereby. XII INDEMNITY TBCDC agrees that it shall indemnify and save harmless the City, its officers, agents and employees from: A. Any claims or losses for services rendered by any subcontractor, person or firm performing or supplying services, materials or supplies in connection with the performance of this agreement. B. Any claims or losses resulting to any person or firm injured or damaged by the erroneous, willful or negligent acts or omissions, including disregard of federal, state, and local statutes or regulations, by TBCDC, its officers, employees or subcontractors in the performance of this agreement. C. The obligation to indemnify shall include all legal fees and costs incurred by the City, its officers, agents and employees, arising from the matters identified in A. and B. XIII TERM OF AGREEMENT This agreement shall be in full force and effect from the date first written above and shall remain in force for the full period of affordability applicable to the project assisted with HOME funds under this agreement. 11 IN WITNESS WHEREOF, the parties heret _have executed these presents and have set their hands and seals this day of „Ley , 2018. ATTEST: CITY OF CLEARWATER, FLORIDA, a municipal corporation organized and existing under the laws of the State of Florida By: k4-4-O4Au- 0 Rosemarie Call, City Clerk STATE OF FLORIDA TY OF CLEARWATER GLPP.w,.B. Ue.- illiam B. Horne II, City Manager ampa Bay Community Development Corp. Florida no ofit corporation THE FORE ING HOME AGRE 2018, by s personally known to me identification. Title: Print Name: /' 1 C--14/ C L- -17 OA 1--r 6 r' Date:_ GRE ME ed e T was acknowld before e thi day of j� as� 5 i He/She as /� or L who has produced 01.44;:.. .. TAMMY N TREADWAY _ • `.r.ro AfCc.:1N it FF936486 rir 'e.nber 16, 2019 �. waN„t YS,,,ww oom NOTARY Print Name: My Commission Expires: /j APPROVED AS TO FORM for the use and reliance of the City of Clearwater, Florida, only. /7 , 2018. Laura Mahony, Assistant Cit Clearwater, Florida 12 Attorney WARNING: 18 U.S.C. 1001 provides, among other things, that whoever knowingly and willingly makes or uses a document or writing containing any false, fictitious, or fraudulent statement or entry, in any matter within the jurisdiction of any department or agency of the United States, shall be fined not more than $10,000 or imprisoned for not more than five years, or both. 13 Exhibit "A" INCOME LIMITS April 1, 2018 INCOME ELIGIBILITY LIMITS HUD Release Date - April 1, 2018 Household Size 100% Median Income 30% Median (Extremely Low) Income 50% Median (Very Low) Income 80% Median (Low) Income 1 Person $13,450 22,400 $ 35,800 53,760 2 Persons 16,460 25,600 40,900 61,440 3 Persons 20,780 28,800 46,000 69,120 4 Persons 63,900 25,100 31,950 51,100 76,680 5 Persons 29,420 34,550 55,200 82,920 6 Persons 33,740 37,100 59,300 89,040 7 Persons 38,060 39,650 63,400 95,160 8 Person 42,200 42,200 67,500 101,280 GROSS (UNADJUSTED) MEDIAN HOUSEHOLD INCOME - $63,900 14