PROGRAM YEAR 2022-2023 SUBRECIPIENT AGREEMENT - HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME)PROGRAM YEAR 2022-2023 SUBRECIPIENT AGREEMENT BE AND BETWEEN
CITY OF CLEARWATER
AND
CLEARWATER NEIGHBORHOOD HOUSING SERVICES, INC.
THIS SUBRECIPIENT AGREEMENT (hereinafter the "Agreement") is made and entered into by and
between the City of Clearwater, a Florida municipal corporation, with a principal address of P.O. Box
4748, Clearwater, Florida 33758 (hereafter referred to as the "City") and Clearwater Neighborhood
Housing Services, Inc., a Florida non-profit corporation, with a principal address of 608 North Garden
Avenue, Clearwater, FL 33755 (hereinafter referred to as "CNHS" or "Subrecipient").
WHEREAS, the City has applied for and received HOME Investment Partnerships Program funding
(hereinafter designed as "HOME") from the Department of Housing and Urban Development; and
WHEREAS, CNHS has applied for and been approved to utilize HOME Program funds for Down Payment
Assistance services; and
WHEREAS, CNHS 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 July 15, 2021, the City Council authorized City Manager to execute an agreement with
CNHS to provide Down Payment Assistance services utilizing up to $45,000.00 in HOME funds for
existing or newly constructed homes. In conjunction with other funding sources, CNHS will provide
services for up to seven (7) eligible, low-income homebuyers within the city limits of Clearwater, Florida.
NOW THEREFORE, the City and CNHS hereby execute this agreement to undertake the described Down
Payment Assistance services.
FURTHERMORE, the City and CNHS agree as follows:
1. SCOPE OF SERVICES
A. Subrecipient shall qualify up to seven (7) eligible, low-income homebuyers within the city limits
of Clearwater, Florida.
B. Subrecipient 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 A.
C. CNHS shall complete the project within the program year as provided for in "D" below, unless a
time extension is requested by Subrecipient in writing and granted by the City in writing. Any such
time extension shall be attached to and made a part of this Agreement.
D. Subrecipient shall accomplish the contracted activities in program year 2022-2023 which begins
on October 1, 2022 and runs through September 30, 2023.
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2. PROJECT FUNDING — DOWN PAYMENT ASSISTANCE SERVICES
A. The City of Clearwater hereby approves HOME Program funding for Down Payment Assistance
services in an amount up to Forty -Five Thousand Dollars & 00/100 ($45,000.00) for existing and
newly constructed homes in the City of Clearwater from 2022 HOME Program funds. As a
subrecipient on behalf of the City of Clearwater, CNHS will provide outreach and marketing,
intake and processing of up to seven (7) down payment and closing cost assistance loans for
qualified, low-income homebuyers who purchase homes in the city limits of Clearwater.
B. Requests for Disbursements and Program Income. Subrecipient 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 Clearwater Neighborhood Housing
Services, Inc. and closes. The City will compensate Subrecipient One Thousand Five Hundred
Dollars and 00/100 ($1,500.00) 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 CNHS to
complete the project.
C. Homebuyer income qualification, underwriting and layering guidelines. Subrecipient shall
determine if 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). Subrecipient shall use third -party
verifications of income and assets and 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 18 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, up to $45.000.00 for existing and newly constructed homes, 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.
E. It is expressly agreed and understood that the total amount of down payment assistance processing
services shall not exceed Forty -Five Thousand Dollars & 00/100 ($45,000.00) for existing and
newly constructed homes from the 2021 HOME Program. Subrecipient will be awarded One
Thousand Five Hundred and 00/100 Dollars ($1,500.00) per down payment assistance loan
closed.
F. If for any reason any term of this Agreement is breached by Subrecipient, the City may require full
repayment of any amounts advanced under this Agreement, pursuant to Section 9, Remedies of
Default.
3. 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 by 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. Subrecipient shall
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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:
HOME Loan Amount
Affordability Period
Under $15,000
5 Years
$15,000 to $40,000
10 Years
Over $40,000
15 Years
C. Subrecipient shall ensure that the purchase price paid by the low-income homebuyer does not
exceed Two Hundred Seventy -Eight Thousand and 00/100 Dollars ($278,000.00) for existing
homes and newly constructed homes or as updated by HUD.
4. MINIMUM HOUSING STANDARDS
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.
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 ensure adherence to applicable
Minimum Housing Standards.
5. NOTICES
Communication and details concerning this agreement shall be directed to the following persons:
City of Clearwater Clearwater Neighborhood Housing Services
Charles Lane Frank Cornier, President/CEO
Asst Director, Economic Development & 608 North Garden Avenue
Housing
PO Box 4748 Clearwater FL 33755
Clearwater, FL 33758-4748
The contact persons listed above may be changed upon fifteen (15) days written notice to the other
party.
6. 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.
7. ADMINISTRATIVE REQUIREMENTS
A. Subrecipient shall abide by all applicate federal, state and local laws, regulations and codes and
ordinances in the performance of all activities required by this Agreement, and specifically agrees
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to adhere to applicable requirements of 24 CFR Part 92, Final Rule dated September 16, 1996
(updated December 22, 2004 and amended on July 24, 2013) including those described in 24 CFR
Subpart H with the exception of Environmental Reviews, which CNHS cannot assume and 24 CFR
92.357 the intergovernmental review process does not apply. CNHS shall comply with the City of
Clearwater HOME Regulations and the City of Clearwater Policies and Procedures Manual dated
July 29, 2022, through the term of this Agreement (and any future revisions) which is available
upon request.
B. Subrecipient shall submit an agency -wide audit which shall include the project funds annually. The
audit shall be in accordance with generally accepted accounting principles. CNHS 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 CNHS within thirty (30) days after receipt of said audit report
by the City. Failure of CNHS 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 9 -
Remedies on Default.
C. Subrecipient shall adhere to the requirement of 2 CFR 200 Subpart E - Cost Principles, 24 CFR
Part 84 and 24 CFR §92.505.
D. Subrecipient 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 Subrecipient within a reasonable timeframe,
to be specified by the City in its notice to Subrecipient, suspension or termination procedures may
be initiated as specified in Section 8, Section 9 or Section 10.
E. Subrecipient 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 the
services required under this Agreement. Subrecipient further covenants that in the performance of
this Agreement, no person having such a financial interest shall be employed or retained by
Subrecipient 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. Subrecipient 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. Subrecipient shall affirmatively market all housing units developed under
this Agreement to low-income persons in compliance with 24 CFR §570.601 - Public Law 88-352
and Public Law 90-284 and ensure maintenance of documentation of affirmative marketing efforts
to such persons. Prior to any funds being disbursed under this Agreement, Subrecipient shall
provide an affirmative marketing plan acceptable to the City documenting the affirmative
marketing efforts to low-income persons planned to be undertaken by Subrecipient regarding this
project.
H. Subrecipient 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.
I. Environmental. Subrecipient shall comply with EPA regulations pursuant to 40 CFR Part 50;
National Environmental Policy Act of 1969, as applicable to projects funded under this Agreement,
the Flood Disaster Protection Act of 1973 (42 U.S.C. §4106) and the Lead -Based Paint Poisoning
Prevention Act (42 U.S.C. §§4821-4846) and the regulations promulgated thereunder, all as
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amended. Subrecipient agrees to assist the City to comply with the following regulations insofar as
they apply to the Environmental Protection Regulations pursuant to 40 CFR Part 50, HUD
Environmental Review Procedures specified in 24 CFR Part 58, as well as all other applicable
environmental laws and regulations, all as amended. The City shall ensure maintenance of
documentation to evidence compliance with environmental statutes and regulations with the
assistance of Subrecipient.
J. Subrecipient shall establish and ensure the eligibility of purchasers of housing purchased under this
Agreement regarding low-income homebuyer requirements specified by the Department of
Housing and Urban Development. In addition, Subrecipient 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 and Asian/Pacific Islander. Subrecipient 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. Subrecipient shall provide drug-free workplaces in accordance with the Drug -Free Workplace Act
of 1988.
L. Subrecipient 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. Subrecipient shall ensure maintenance of
adequate records and reports to evidence such compliance.
M. Record Retention. Subrecipient will ensure that all records required under this Agreement are
retained for a period of five (5) years after the applicable required period of affordability.
Subrecipient shall furnished, 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 here.
N. OSHA - Subrecipient 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 — Subrecipient 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. Subrecipient shall maintain records and documentation to evidence
compliance with this requirement. Subrecipient shall take 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. Subrecipient 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 — Subrecipient 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.
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Q. Subrecipient agrees that funds received under this Agreement will not be utilized for religious
actives, to promote religious interests, or for the benefit of a religious organization.
R. Reversion of Assets — Upon expiration or termination of this Agreement, Subrecipient shall
transfer to 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.
8. DEBARMENT AND SUSPENSION
Subrecipient 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
judgement 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.
9. REMEDIES OF 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 this 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 Subrecipient has materially failed to comply with any provisions for this
Agreement, or with any rules, statues, regulations, or ordinances referred to herein, the City will
notify Subrecipient 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 5 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 Subrecipient the opportunity to demonstrate compliance with the agreement
requirements in question. Subrecipient shall offer evidence of such compliance within a reasonable
timeframe 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 Subrecipient fails to demonstrate to the City that 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:
■ Temporarily withholding cash payments pending correction of the deficiency by
Subrecipient.
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• Specific activities required by the City to correct the deficiency and to be accomplished
by Subrecipient in a specified time frame.
• Canceling or revising activities which may be affected by the performance deficiency
and were approved under this Agreement.
• Reprogramming any balance of HOME funds made available under this Agreement
from deficient activities, or any activity funded under this Agreement, to other eligible
activities.
■ Suspension of HOME fund disbursements for deficient activities, or any activities
funded under this Agreement and subsequent termination of this Agreement in its
entirety.
■ Termination of this Agreement in its entirety and require Subrecipient to repay to the
City any and all HOME funds advanced under this Agreement.
• Removing subrecipient from participation in any future allocation of HOME funds
from the City.
■ Taking other remedial actions that may be legally available to the City.
D. In the event Subrecipient dissolves the organization, ceases to exist, or becomes unable for any
reason to fulfill its obligations under this Agreement, the City will require Subrecipient 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 9, 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, Subrecipient 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).
10. TERMINATION
A. Pursuant to 24 CFR Part 200, the City may terminate this Agreement upon thirty (30) days prior
written notice to the Subrecipient contact person indicated in Section 5 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.
B. Subrecipient may terminate this agreement upon thirty (30) days prior written notice to the City
contact person indicated in Section 5 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 9, or 24 CFR Part 200.
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11. 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 Subrecipient, respectively, and that their
signatures below, the terms and provisions thereof, 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
modifications(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.
Subrecipient shall always remain an independent contractor with respect to the services to be
performed under this Agreement.
F. Subrecipient 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 of provision of this Agreement, or provisions thereof, be 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.
12. INDEMNITY
Subrecipient agrees that it shall indemnify and save harmless the City, it's 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 Subrecipient, 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.
13. TERM OF AGEREMENT
This Agreement shall be in full force and effect from October 1, 2022 through September 30, 2023.
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IN WITNESWHEREQF, the parties hereto have executed these presents and have set their hands and
seals this day of 1)0A-11.L—f , 2022.
ATTEST:
(11/11-(ta e
Rosemarie Call, City Clerk
STATE OF FLORIDA
COUNTY OF PINELLAS
CITY OF CLEARWATER, FLORIDA a municipal corporation
Organized and existing under the laws of the State of Florida
Jon P. Jennings, City Manager
Clearwater Neighborhood Housing Services, Inc., a Florida
non-profit corporation
By: •—
Title. ets4c10t.* &CVO
Print Name:
Date:
2_3, 2o22-
THE
o2Z
THE FOREGOING AGREEMENT was acknowledged before me by means ofi�physical presence or
❑ online notarization, this 23 day of , 2022, by F(' -. Corydor
as Pert g- GEO . He/S a is personally known to me or ❑ has produced
as identificat'
U.
PAMELA C. WRIGfi,orcm
Notary a,,h!.i: - State o`
. * .: ay
�; Commission 5555 13
• My Comm. Expires Sep 16, 2025
Bonded through National Notary Aasr.,
[GM22-1510-275/295359/1 ]
AR
Name:
IC
C
ommission Expires:
I b � 202
APPROVED AS TO FORM
For the use and reliance of the
City of Clearwater, Florida, only.
. 30
, 2022
Laura Mahony, Senior Assistant ty Attorney
Clearwater, Florida
Page 9 of 10
14. EXHIBIT A
HOME INCOME LIMITS
June 15, 2022
INCOME ELIGIBILITY LIMITS
Effective —June 15, 2022
Household
Size
100% Median
Income
30% Median
(Extremely
Low)
Income
50% Median
(Very Low)
Income
80% Median
(Low)
Income
1 Person
$17,300
$28,750
$ 46,000
2 Persons
19750
32,850
52,600
3 Persons
22,200
36,950
59,150
4 Persons
24,650
41,050
65,700
5 Persons
26,650
44,350
71,000
6 Persons
28,600
47,650
76,250
7 Persons
30,600
50,950
81,500
8 Person
32,550
54,200
86,750
GROSS (UNADJUSTED) MEDIAN HOUSEHOLD INCOME - $82,100.00
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