NeighborWorks Montana/Community Land Trust Grant AgreementGRANT ADMINISTRATION AGREEMENT
between
The City of Kalispell
And
Montana Homeownership Network
dlbla NeighborWorks Montana
THIS AGREEMENT is entered into on thisp O ay of June, 2019, by and between the
City of Kalispell (CITY), a municipal corporation of the state of Montana, with its business
office at 201 1" Ave E, Kalispell, MT 59901 and Montana Homeownership Network Montana
d/b/a NeighborWorks Montana (AGENCY), a private, non-profit corporation incorporated under
the laws of Montana (hereinafter referred to as "the Agency") with its business office at 17 5"
Street South, Great Falls, MT 59401.
WITNESSETH:
WHEREAS, the CITY was the recipient of Montana's Neighborhood Stabilization Program
[NSP] grants pursuant to the terms of #PMT-NSP-007-01-001 (NSP1] program
attached hereto as Exhibit "A" and pursuant to the terms of #MT-NSP- 12-007-0 1 -
00 1 [NSP3] program attached hereto as Exhibit "B"; and
WHEREAS, the above -described grants were closed out on the ;# day of �(j1 � , 2019
and the CITY now desires to contract with the AGENCY to Administer
Contracts #MT-NSP-007-01-001 and #MT-NSP-12-007-01-001 between the
Montana Department of Commerce (MDOC) and the CITY, (Grant Contract), in
compliance with the Project Management Plan approved by the Department,
attached hereto as Exhibit "C" and specifically incorporated herein by this
reference (hereinafter referred to as the "Project Management Plan"), as may be
amended from time to time by mutual agreement of the parties; and adherence to
all responsibilities included in the long term program income plans for the above
referenced Contracts and other agreements entered into by the parties.
WHEREAS, this Grant Administration Agreement incorporates the contract amendments
entered into between the parties as set forth in Exhibit "D" attached hereto and
fully incorporated herein by this reference; and
WHEREAS, the AGENCY agrees to operate, manage, and maintain the CITY's NSP Program(s)
in a manner so as to be available to all income qualified residents within the City
limits without regard to race, color, religion, creed, gender, age, marital status,
physical or mental disability, or national origin and with granting agencies required
guidelines; and
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City of Kalispell NeighborWorks Montana
Grant Administration Agreement
WHEREAS, the parties to this Agreement understand that neither party has in any way abrogated
any of its individual powers, and that this Agreement does not create any new
organization or legal entity.
NOW, THEREFORE, THE CITY AND THE AGENCY MUTUALLY AGREE AS FOLLOWS:
I. Responsibilities Delesated to the AGENCY
A. The AGENCY agrees to carry out the CITY's NSP Program(s) in accordance
with the terms and conditions of the Grant Contracts; the MDOC Community
Development Block Grant (CDBG)/Neighborhood Stabilization Program
(NSP) Grant Administration Manual; the State of Montana NSP Substantial
Amendment, Plan Year 2010 Annual Action Plan; the Housing and Economic
Recovery Act of 2008; the Dodd -Frank Wall Street Reform and Consumer
Protection Act of 2010; all applicable sections of 2 CFR Part 200 , and 570;
and any other requirements for NSP Program(s) as set forth by HUD, including
but not limited to 2 CFR part 200, and the Federal Register Notice 64322, Vol.
75, No. 201, and any revisions thereto.
B. The CITY and the AGENCY will comply with all applicable parts of the Housing
and Community Development Act of 1974, as amended, 42 U.S.C. §§ 5301, et
seq.; the applicable Department of Housing and Urban Development (HUD)
regulations, including but not limited to 24 CFR Part 570, 2 CFR Part 200 and
Fonn HUD-4010, the Housing and Economic Recovery Act of 2008 and the
Wall Street Reform and Consumer Protection Act of 2010, as now in effect or as
they may be amended during the term of this contract; all administrative
directives and procedures that may be established by the Department, including
the most recent version of the CDBG/NSP Grant Administration Manual, as
amended; and any other applicable local, state, and federal laws, regulations,
administrative directives, procedures, ordinances, or resolutions.
C. The AGENCY agrees to carry out the duties and responsibilities assigned to it
in the Project Management Plan.
D. The AGENCY will submit semi-annual reports to the CITY, due on April 30
and October 30, unless later excused or modified by new regulation or
agreement. These reports shall include:
1) Montana Department of Commerce Neighborhood Stabilization
Program Exhibit 15-4-C.NS (or most current version)
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City of Kalispell Neigh borworks Montana
Grant Administration Agreeni nt
To be included in April 30 report only:
2) a copy of the Agency's annual IRS 990 tax form; and
3) a copy of the Agency's annual Treasurer's report; and
4) proof of adequate insurance on each facility acquired in whole or
in part with the City's NSA Program funds.
To be included in all reports - Confirmation and acknowledgement of
the following:
(5) All NSP funds and program income earned was expended in
accordance with applicable federal and state regulations
(6) All properties acquired, rehabilitated, and sold were in accordance
with applicable federal and state regulations
(7) All beneficiaries of NSP funds were assisted in accordance with
applicable federal and state regulations
E. The AGENCY will comply with the applicable procurement requirements set
forth 24 CFR §85.36. The AGENCY will provide to the CITY copies of all
quotes and any other construction documents as requested by the City and
MDOC. The Agency shall procure all materials, property, or services in
accordance with the requirements of Attachment O of OMB Circular A-110,
Procurement Standards.
F. Duration of the Agreement
This Agreement takes effect when the following conditions are satisfied:
The attorney for the CITY and the attorney for the AGENCY have
approved this Agreement as to form and content; and
2. The CITY's Manager and the AGENCY's Executive Director have each
reviewed this Agreement, agreed fully to its terms and conditions, and
executed the same.
G. This Agreement will be in effect throughout the period of affordability or up to
twenty (20) years from the date the CITY's NSP Program(s) are completed and
through the duration of earnings and expenditures of program income funded
activities, depending on the amount of assistance provided, as referenced in
State of Montana NSP Substantial Amendment Plan Year 2010 Annual Action
Plan.
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City of Kalispell Neighbor -works Montana
Grant Administration Agreement
II. Administration
A. The AGENCY does not assume the CITY's environmental responsibilities
described at 24 CFR Part 58.
B. The AGENCY does not assume the CITY's responsibility for initiating the
review process under the provisions of 24 CFR Part 52.
III. Use and Disposition of Real Prosy and Program Income
A. The AGENCY will manage the Programs during the term of this Agreement in
accordance with the terms set forth herein and set forth in the program income
plans as set forth by AGENCY and CITY and approved by MDOC for each
Contract.
With respect to any real property under the AGENCY's control that was
acquired or improved in whole or in part with funds from the CITY's NSP
Program(s) in excess of $25,000, the AGENCY will either:
use the real property, and the proceeds from the sale or lease of same to
meet one of the national objectives contained in 24 CFR 570.208 during
the Period of Affordability; or
2. dispose of the real property in a manner that reimburses the CITY in the
amount of the current fair market value of the real property, less any
portion of the value attributable to expenditures of non-NSP funds for
acquisition of, or improvements to, the real property, subject to all
Program Income requirements. Reimbursement is not required after the
Period of Affordability.
B. Upon the expiration of this Agreement, the AGENCY will transfer to the CITY
any of the Program Income (as defined in Subparagraph E below) on hand at the
time of expiration of this Agreement and any accounts receivable attributable to
the use of such funds.
C. As security for the perfonnance of the obligations set forth herein, an abstract of
this Agreement will be duly recorded with the Flathead County Clerk and
Recorder's office against each real property acquired in whole or in part with
Program Income (as defined in Subparagraph E below).
Page 14
City of Kalispell Neighborivo►ks Montana
Grant Administration Agreement
D. Notwithstanding any other provision of this Agreement, all revenue (i.e. gross
income) received by the AGENCY that is directly generated from the use of the
City's NSP grant funds constitutes Program Income as defined in 24 CFR
570.500(a). All Program Income shall be retained by the AGENCY and used to
meet one of the national objectives contained in 24 CFR 570.208 during the
Period of Affordability and all provisions of this Agreement shall apply to the
use of Program Income.
IV. Indemnification
The AGENCY shall indemnify and hold harmless the CITY and its agents and employees from
and against all claims, damages, losses and expenses, including attorney fees, arising out of, or
resulting from, the AGENCY's performance of its obligations under this Agreement, provided
that any such claim, damage, loss, or expense is:
A. attributable to bodily injury, sickness, disease or death or to damage or
destruction of tangible property, including the loss and use resulting therefrom;
and,
B. is caused in whole or in part by any negligent act or omission of the AGENCY
or its contractor(s), and subcontractor(s), or anyone directly or indirectly
employed by any one of them, for whose acts any of them may be liable,
regardless whether or not it is caused in part or by a party indemnified hereunder.
V. Debarment
The AGENCY certifies and agrees to ensure during the tern of this Agreement that neither it
nor its principals, contractors, subcontractors, or sub -recipient entities are debarred, suspended,
proposed for debarment, declared ineligible, or voluntarily or otherwise excluded from or
ineligible for participation in this Agreement by any governmental department or agency or in
any Federal assistance programs under Executive Order 12549, "Debarment and Suspension."
VI. Access to and Retention of Records
A. In accordance with the requirements of 24 CFR § 570.502 and 2 CFR § 200.333, the
AGENCY shall create and retain records of the services covered by this Agreement,
including but not limited to financial records, supporting documents, and such other
records as are required by law, for a period of five (5) years after either the completion
date of this Agreement or the conclusion of any claim, litigation, or exception relating
to this Agreement taken by the State of Montana, the CITY, or third party, whichever
is later. These records will be kept in the AGENCY's offices in Kalispell, Montana.
Page 5
City of Kalispell Neighborworks Montana
Grain Administration Agreement
B. In accordance with the requirements of 24 CFR § 570.502 and 2 CFR § 200.336, the
AGENCY shall provide the Department, HUD, Comptroller General of the United
States, Montana Legislative Auditor, or their authorized agents access to any records
necessary to determine compliance with the Agreement and to make audits,
examinations, excerpts, and transcripts.
VII. Progress Reports
The AGENCY shall submit semi-annual reports to the City in the form, content, and frequency
as set forth in Section I above.
VIII. Assignment. Transfer, and Subcontractinp-
The AGENCY may not assign, transfer, or subcontract any portion of this Agreement without
prior written approval by the City and MDOC. If such approval is granted, the AGENCY
accepts responsibility for the adherence to the terms of this Agreement by such contractors,
subcontractors, or sub -recipient entities and by any public or private agents or agencies to which
it delegates authority to carry out any portion(s) of this Agreement.
IX. Suspension or Termination
In accordance with 2 CFR Part 200, the City may suspend or terminate this Agreement if the
AGENCY materially fails to comply with the terns and conditions of this Agreement, or if the
Grant Contract is terminated by the MDOC in accordance with its terms.
Page 16
City of Kalispell Neighbotivorks Montana
Grant Administration Agreement
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the c) _ day of
June, 2019.
CITY OF KALISPELL
/ • (�f r
BY: DATE: 6 �
Do g R el , City Manager
ATTEST:
-MjA/V'-i
AimeJ Brunckhorst, City Clerk
APPROVED AS TO FORM:
c�
Charles A. Harball, City Attorney
Page 17
City of Kalispell Neighbor►vorks Montana
Grant Administration Agreement
STATE OF MONTANA
County of Flathead
On this 1 �'Lday of - _)-� , 2019, before me � "�
R.
Notary Public for the State of Montana, personally appeared Doug Russell, City Manager of the
CITY OF KALISPELL, and acknowledged to me that he executed the written instrument on
behalf of said entity.
TINTED NAME:
ID
JUDI A. FUNK '� 01 AL}NOTARY PUBLIC 1101% Notary e State of Montana
State of Montm Residing at_Residing at �, Mo b" My Commission �n M���rimission expires
Febma 25 2020
Page 18
City of Kalispell Neighbonvorks Montana
Grant Administration Agreement
MONTANA HOMEOWNERSHIP NETWORK
d/b/a/ NeighborWorks Montana
r" F
BY:
Maur en Rude, E cutive Director
STATE OF MONTANA
County of Flathead
DATE: {_
On this -Dll�k�Nday of , 2019, before me'_` t .. (�', , a
Notary Public for the State of Montana, personally appeared Maureen Rude, Executive Director
NEIGHBORWORKS MONTANA, and acknowledged to me that she executed the written
instrument on behalf of said entity.
JUDIA. FUNK PRINTED NAME:
(N L) NOTARY PUBLIC b►!hs Notary Pub ' e State of Montana
$tate of Mama Residin at:
SEAL Residing at u mpeii, Montana Residing
My Commisslon Expires My- mmission expires --
°F µ0fi Fo a 25, 2020
Page! 9
City of Kalispell - Neighborworks Montana
Grant Administration Agreement
Exhibit "A" 090019
NEIGHBORHOOD STABILIZATION PROGRAM CONTRACT
CONTRACT #MT-NSP-007-0 1 -001
This Contract is entered into by City of Kalispell, Montana, (the Grantee), IRS#81-6001281 and the
Montana Department of Commerce, Helena, Montana, (the Department).
The Grantee and the Department hereby agree to the following terms:
Section 1. PURPOSE
The purpose of this Contract is to provide funding for project activities approved by the Department
under the Neighborhood Stabilization Program (NSP) for FFY 2008.
Section 2. AUTHORITY
This Contract is issued under authority of Section 90-1-103, Montana Code Annotated, and the
Administrative Rules of Montana, Title 8, Chapter 94, Subchapter 37.
Section 3. DOCUMENTS INCORPORATED BY REFERENCE
A. Department of Housing and Urban Development Federal Register Notice, Vol. 73, No. 194,
dated October 6, 2008.
B. Department of Housing and Urban Development Federal Register Update Notice, Vol. 74, No.
117, dated June 19, 2009.
C. State of Montana NSP Substantial Amendment, Plan Yeor2008 Annual Action Plan, submitted to
HUD November 28, 2008 and approved by HUD January 30, 2009 ("the NSP Program"),
D. Grantee's application for participation in NSP, including any written modifications resulting
from the review of that application by the Department, as set forth in the NSP approval
letter dated September 17, 2009 (collectively, the "Grantee's Program"), and the
representations contained therein, which are binding upon the Grantee.
Section 4. ACCEPTANCE OF PROGRAM REQUIREMENTS
Neighborhood Stabilization Program Grant I of 17 Contract # MT- NSP- 007-01-001
Montana Department of Commerce City of Kalispell
A. The Grantee will comply with all applicable parts of the Housing and Community Development
Act of 1974, as amended, 42 U.S.C. §§ 5301, et seq.; the applicable Department of Housing and
Urban Development (HUD) regulations, including but not limited to 24 CFR Part 570 and
Form HUD-4010, and the Housing and Economic Recovery Act, 2008, as now in effect or as
they may be amended during the term of this contract; all administrative directives and
procedures that may be established by the Department, including the most recent version of
the CDBGINSP Grant Administration Manual, as amended; and any other applicable local,
state, and federal laws, regulations, administrative directives, procedures, ordinances, or
resolutions.
B. The Grantee agrees that all contracts entered into by it for the completion of the activities
described in Section 6 SCOPE OF ACTIVITIES of this Contract will require such contractors,
subcontractors, and subrecipient entities to also comply with all applicable local, state, and
federal laws, regulations, administrative directives, procedures, ordinances, resolutions; and all
administrative directives and procedures that may be established by the Department, including
the CDBGINSP Grant Administration Manual, as amended.
C. The Grantee expressly agrees to repay to the Department any funds advanced under this
Contract that the Grantee, or its contractors, subcontractors, or subrecipient entities, or any
public or private agent or agency to which they delegate authority to carry out portions of this
Contract, expends in violation of the terms of this Contract, the statutes and regulations
governing the NSP Program, or any applicable local, state, or federal requirements.
D. Grantee acknowledges and agrees that the State of Montana is in no way exercising its
power of eminent domain through its approval or funding of Grantee's Program.
Section 5. EFFECTIVE DATE AND TIME OF PERFORMANCE
A. This Contract shall take effect upon execution by the parties and will terminate upon approval
of final Project closeout by the Department, unless terminated earlier in accordance with the
terms of this Contract. The specific activities to be performed by the Grantee will be com-
pleted according to the Project Request, Implementation Schedule, and Budget to be
submitted by Grantee and approved by the Department.
B. This Contract will be in effect for the period of affordability for activity, which may be up to
twenty (20) years from the date of completion, depending on the amount of assistance
provided, as referenced in State of Montana NSP Substantial Amendment Plan Year
Neighborhood Stabilization Program Grant 2 of 17 Contract # MT-NSP-007-0 1 -001
Montana Department of Commerce City of Kalispell
2008 Annual Action Plan, Section C — Definitions and Descriptions (p. 24).
Section 6. SCOPE OF ACTIVITIES
As stated in the Housing Economic Recovery Act of 2008, NSP Program funds must be obligated by
September 19, 2010 and expended by March 19, 2013. The Grantee will engage in activities approved
for the Grantee's Program until the total amount of NSP funds are committed and expended (the
"Program")
The major components of the Program include the following work for the City of Kalispell;
• Purchase foreclosed single family homes;
• Rehabilitate foreclosed single family homes;
■ Provide financing mechanisms to low income (at or below 120 percent area median
income) individuals or households to purchase foreclosed single family homes; and
• administration of this Contract in compliance with the Project Management Plan
approved by the Department and as may be amended from time to time by mutual
agreement of the Parties.
Section 7. BUDGET
A. The Department will not disburse funds to the Grantee for a particular project in Grantee's
Program until the Grantee has submitted and the Department has approved the budget for
that project.
B. All projects require a separate budget for entry into the Disaster Recovery Grant Reporting
system (DRGR).
C. Budget adjustments must be approved in advance by the Department. For budget
adjustments of $5,000 or less, Department approval of the Request for Funds form will
constitute approval of the budget adjustment. The Grantee must describe the rationale
for a budget adjustment in the Project Progress Report and note the adjustments in the
Request for Funds and Status of Funds Report submitted with draws against the grant
funding reserve. Budget adjustments in excess of $5,000 require formal Department
approval and the Contract amended. No modification will be approved for obligation of
funds beyond September 19, 2010, or expenditure of funds beyond March 19, 2013.
Neighborhood Stabilization Program Grant 3 of 17 Contract # MT-NSP-007-01-001
Montana Department of Commerce City of Kalispell
D. Program Income
(i) The Grantee may retain program income received before Project closeout, but such
income must be treated as additional NSP funds and subject to all applicable
requirements governing the use of NSP funds.
(ii) if the Grantee chooses to retain program income received before Project closeout, a
program income plan in compliance with the most recent version of the Department's
Program Income Manual for Revolving Loan Funds must be developed and submitted
for review and written approval by the Department.
(iii) Grantee will record receipt and expenditure of retained program income as part of the
financial transactions of the Project.
(iv) At the end of each calendar year during the term of this Contract, the Grantee must
remit all program income balances (including investments thereof) held by the Grantee,
its contractors, subcontractors, and subrecipient entities that exceed one -twelfth of
the Department's total award to the Grantee, to be placed in the Grantee's funding
reserve.
(v) The Grantee must expend substantially all program income it receives before
requesting additional NSP funds. The Department will deduct the amount of program
income on hand, shown on the drawdown form, from the amount requested by the
Grantee.
(vi) If the Grantee desires to retain program income received after Project closeout, the
Grantee must execute a grant closeout agreement with the Department at the time of
closeout that describes the Grantee's responsibility for compliance with requirements
governing program income received subsequent to grant closeout.
E. Any authorized funds not expended by March 19, 2013 under this grant or otherwise
accounted for in accordance with the provisions of this Section will revert to the Department
and will be used to finance other NSP projects.
Section B. AMOUNT OF GRANT AND METHOD OF PAYMENT
A. The Grantee will request that the Department disburse funds when the funds are needed for
payment of eligible reimbursable costs. The amount of each request will be limited to the
amount needed. The Grantee will use NSP funds based upon the requirements of obligation
of funds by September 19, 2010, and expenditure of NSP funds by March 19, 2013.
B. if the Department determines the Grantee has failed to satisfactorily carry out its
responsibilities under this Contract, the Department will notify the Grantee in writing of the
Neighborhood Stabilization Program Grant 4 of 17 Contract # MT-NSP-007-0 1 -001
Montana Department of Commerce City of Kalispell
def ciency. If after receiving this notification, the Grantee does not remedy the deficiency
within a reasonable period of time to be specified in the notice, the Department may suspend
the Grantee's authority to draw against the reserve described in this Contract. The
suspension will continue until the Department and the Grantee agree on a plan to remedy the
deficiency.
C. The Department agrees to reimburse the Grantee as set forth in this Section for successfully
completing the activities set forth in Section 6 SCOPE OF ACTIVITIES, as the Grantee incurs
approved, eligible, reasonable, and necessary Project expenses supported by adequate
documentation submitted by the Grantee and upon approval by the Department of the
Grantee's Request for Funds. In requesting reimbursement, the Grantee will follow the
instructions supplied by the Department.
D. The Department will not reimburse the Grantee for any costs incurred prior to the date of
execution of this Contract, unless previously authorized in writing by the Department, but
in no event for costs incurred prior to the date of the Notice of Grant Approval Letter
September 17, 2009 for any expenses not included in the budget or an approved adjustment
thereto, or for any expenses not clearly and adequately supported by the Grantee's records.
E. The reimbursement of approved, eligible, reasonable, and necessary Project expenses incurred
is contingent upon the Grantee's completion of Section 17 SPECIAL PROJECT START-UP
CONDITIONS.
F. The Department will not release any NSP funds to the Grantee until the Grantee has obtained
firm commitments for all other financial resources to be involved in the Project. The Grantee
may not expend or obligate any NSP funds, other than for administrative purposes, until the
Department determines that this condition has been satisfied.
G. As further set forth in Section 23 TERMINATION OF CONTRACT, if the Grantee
fails to or is unable to comply with any of the terms and the conditions of this
Contract, any costs incurred will be the: Grantee's sole responsibility.
H. The Department may withhold two percent (2%) of the total authorized grant amount until all
tasks outlined in Section 6 SCOPE OF ACTIVITIES are completed and approved and the
Grantee's Project Completion Report is received and approved by the Department. The
Department will disburse this withholding upon receipt and approval by the Department of the
Ne'ghborhood Stabilization Program Grant 5 of 17 Contract # MT-NSP-007-0 1 -001
Montana Department of Commerce City of Kalispell
Grantee's Project Completion Report. Prior to receipt of the Project Completion Report, the
Department liaison may authorize release of part or all of the withholding when situations
occur that would result in an undue financial hardship on the Grantee, provided the Grantee
has demonstrated effective overall management of this Project and, when applicable,
satisfactorily managed any earlier NSP projects. If the Grantee fails to submit a Project
Completion Report within the 60 days, the Department may consider whether these
remaining funds should be reallocated by the Department to other unfunded or inadequately
funded activities, whether or not related to Section 6 SCOPE OF ACTIVITIES set forth herein
or to the Grantee.
I. If actual total cost of completing the Project is less than has been projected by the Grantee in
its Project budget or an approved adjustment thereto, the Department, at its discretion, may
reduce the amount of NSP grant funds to be provided to the Grantee accordingly. If actual
construction bids are less than the estimates included in its Project budget, the construction
portion of the budget will be automatically adjusted to reflect the bid price, plus a ten percent
contingency. At the Department's sole discretion, the difference between actual Project costs
and the original grant award may be reallocated to other unfunded or inadequately funded
NSP Projects, whether or not related to Section 6 SCOPE OF ACTIVITIES set forth herein or
to the Grantee's Program.
J. If needed, the Grantee's travel expenses, meals, and lodging will be reimbursed at the
prevailing local rate at the time such expense is incurred.
K. Unless otherwise stated herein, the Department is allowed 30 days to process a Request for
Funds once the Department has received adequate supporting documentation. The Grantee
may be required to provide banking information at the time of Contract execution in order
to facilitate electronic funds transfer payments. The Department may withhold payments to
the Grantee if the Grantee has breached the terms of this Contract.
L. If the Department determines that the Grantee has failed to satisfactorily carry out its
responsibilities under this Contract, the Department may withhold reimbursement to the
Grantee until such time as the Department and the Grantee agree on a plan to remedy the
deficiency.
M. If any obligations remain as of the date of Project closeout, the Department shall prepare and
the parties shall execute a Closeout Agreement specifying the conditions and requirements
governing those remaining obligations, in accordance with the requirements set forth in 24
CFR § 570.509(c).
Neighborhood Stabilization Program Grant 6 of 17 Contract # MT-NSP-007-0 1 -001
Montana Department of Commerce City of Kalispell
Section 9. LIAISONS
Becky Anseth, NSP Program Specialist, is the Department's liaison with the Grantee regarding all
administrative and technical matters concerning this Contract. Marney McCleary (or successor), is
the Grantee's liaison with the Department for all administrative and technical matters concerning this
Contract. For purposes of this Contract, these liaisons may be contacted as follows:
For the Department:
Becky Anseth (or successor)
NSP Program Specialist, MDOC
301 S. Park Ave. Suite 506
P.O. Box 200523
Helena, MT 59620-0523
406-841-2770
For the Grantee:
Marney McCleary (or successor)
Community Action Partnership
PO Box 8300
Kalispell, MT 59904-1300
406-758-541 1
Sectionill). OWNERSHIP AND PUBLICATION OF MATERIALS
A. All reports, information, data, and other materials prepared by the Grantee, or any of its
contractors or subcontractors, in furtherance of this Contract are the property of the
Grantee and the Department, which both have the royalty -free, nonexclusive, and irrevocable
right to reproduce, publish or otherwise use, and to authorize others to use, in whole or part,
such property and any information relating thereto. No material produced in whole or in part
under this Contract may be copyrighted or patented in the United States or in any other
country without the prior written approval of the Grantee and the Department
B. To the extent the funds awarded under this Contract will be used by any small business firm
or non-profit organization, as defined in 37 C.F.R. 401.2, such firm(s) or organization(s) are
subject to the standard patent rights clause set forth in its entirety in 37 C.F.R. 401.14 and
specifically incorporated here°.n by this reference.
Neighborhood Stabilization Program Grant 7 of 17 Contract # MT-NSP-007-0 1 -001
Montana Department of Commerce City of Kalispell
Section 1 1. ACCESS TO AND RETENTION OF RECORDS
A. The Grantee shall create and maintain records of the services covered by this Contract,
including but not limited to financial records, supporting documents, and such other records
as are required by law or other authority, and to provide the Department, HUD,
Comptroller General of the United States, Montana Legislative Auditor, or their authorized
agents access to any records necessary to determine contract compliance. (Mont. Code
Ann. § 18-1-1 18.)
B. The Grantee agrees to create and retain records supporting the services rendered or
supplies delivered for a period of four (4) years after either the completion date of this
Contract or the conclusion of any claim, litigation, or exception relating to this Contract
taken by the State of Montana or third party, whichever is later. These records will be kept
in the Grantee's offices in Kalispell, Montana.
C. The Grantee agrees to include in first -tier subcontracts under this Contract a clause
substantially the same as paragraphs I I (a) and (b).
Section 12. PROJECT MONITORING
A. The Department or any of its authorized agents may monitor and inspect all phases and
aspects of the Grantee's performance to determine compliance with Section 6 SCOPE OF
ACTIVITIES, and other technical and administrative requirements of this Contract, including
the adequacy of the Grantee's records and accounts. The Department will advise the Grantee
of any specific areas of concern and provide the Grantee opportunity to propose corrective
actions acceptable to the Department.
B. Failure by the Grantee to proceed with reasonable promptness to take necessary corrective
actions shall be a default. If the Grantee's corrective actions remain unacceptable, the
Department may terminate this Contract in whole or in part, pursuant to the provisions of
Section 23 TERMINATION OF CONTRACT, or reduce the contract price or award to
reflect the reduced value of services received.
Section 13. REPORTING REQUIREMENTS
A. UPDATE REPORT
(i) During the term of this Contract, the Grantee shall submit update reports by the
Ne ghborhood Stabi ization Program Grant 8 of 17 Contract # MT-NSP-007-0 1 -001
Montana Department of Commerce City of Kalispell
1.3
C.
Am
deadlines set by HUD and the Department for the NSP Program. This report shall
follow the report format specified in the most recent version of the CDBGINSP Grant
Administration Manual, and shall describe the status of the Project with respect to the
activities set forth in Section 6 SCOPE OF ACTIVITIES, including, at a minimum, the
percentage complete, costs incurred, funds remaining, number of units assisted, and
projected completion date. The report must also describe any significant problems
encountered in carrying out the Project and the scope of any necessary modifications
the Grantee is requesting in the Project scope of activities, implementation schedule,
or budget.
(ii) The Department, at its sole discretion, may decline to honor any Request for Funds if
the required update report has not been timely submitted to and approved by the
Department.
PROJECT PROGRESS REPORTING
During the term of this Contract, the Grantee will submit a Project Progress Report with
any Requests for Funds submitted to the Department. This report will describe the use of
the funds requested for each administrative and activity line item. The report should also
describe any anticipated changes in the budgeted amounts.
STATUS OF FUNDS REPORTING
During the term of this Contract, the Grantee will submit a Status of Funds Report with
any Requests for Funds submitted to the Department.
PROJECT COMPLETION REPORT
Within 60 days after the completion of the Project, the Grantee will prepare and submit to the
Department a Project Completion Report in the form prescribed by the Department. The
Project Completion Report will describe the total costs incurred for the Project, identify the
final completion date, summarize any significant problems encountered in carrying out the
Project, provide the final information for each item set forth in paragraph (a) in this Section,
and describe how the Grantee has fulfilled all requirements as set forth in the most current
version of the CDBGINSP Grant Administration Manua, Chapter 13, Project Closeout. Within
15 days of approving the Project Completion Report, the Department will issue the Notice of
Project Close-out.
Neighborhood Stabilization Program Grant 9 of 17
Montana Department of Commerce
Contract # MT-NSP-007-0 1 -001
City of Kalispell
Section 14. COMPLIANCE WITH LAWS
The Grantee must, in performance of work under this Contract, fully comply with all applicable
federal, state, or local laws, rules, and regulations, including but not limited to the Montana Human
Rights Act, the Civil Rights Act of 1964, the Age Discrimination Act of 1975, the Americans with
Disabilities Act of 1990, Section 109 of the Housing And Community Development Act of 1974,
Section 3 of the Housing and Urban Development Act of 1968, Executive Order 11246 of Sept. 24,
1965, and Section 504 of the Rehabilitation Act of 1973. Any contracting, subletting, or
subcontracting by the Grantee subjects contractors, subcontractors, and subrecipient entities to the
same provision. In accordance with Mont. Code Ann. § 49-3-207, the Grantee agrees that the hiring
of persons to perform this Contract will be made on the basis of merit and qualifications and there
will be no discrimination based upon race, color, religion, creed, political ideas, sex, age, marital status,
physical or mental disability, or national origin by the persons performing this Contract.
Section 15. AVOIDANCE OF CONFLICT OF INTEREST
The Grantee will comply with the provisions of the applicable HUD regulations of 24 C.F.R. Parts 84,
85, and 570.611, and with sections 2-2-121,2-2-201, 7-3-4256, 7-3-4367, 7-5-2106, and 7-5-4109,
MCA, (as applicable) regarding the avoidance of conflict of interest.
Section 16. ASSIGNMENT, TRANSFER, AND SUBCONTRACTING
The Grantee may not assign, transfer, or subcontract any portion of this Contract without prior
written approval by the Department. Grantee accepts responsibility for the adherence to the terms
of this Contract by such contractors, subcontractors, or subrecipient entities and by any public or
private agents or agencies to which it delegates authority to carry out any portion(s) of this Contract.
Section 17. SPECIAL PROJECT START-UP CONDITIONS
A. The Grantee will not obligate or utilize funds for any activities provided for by this Contract
until:
(i) The Grantee completes an Environmental Review Record and the Department issues a
Notice of Release of Funds; however, upon receiving written authorization from the
Department, the Grantee may incur administrative costs necessary for the preparation
of the Environmental Review Record and for planning activities defined as exempt
under 24 CFR Part 58.34.
Neighborhood Stabilization Program Grant 10 of 17 Contract# MT-NSP-007-0 1 -001
Montana Department of Commerce City of Kalispell
(ii) The Grantee submits to the Department evidence of the firm commitment of the
other financial resources necessary for the completion of the Project as defined in
Section b SCOPE OF ACTIVITIES and its Project Implementation Schedule, within its
Project Budget.
(iii) The Grantee submits to the Department and the Department approves an acceptable
Project Management Plan, Implementation Schedule, and Program Income Plan.
(iv) The Grantee completes the civil rights activities described in Chapters, "Civil Rights,"
of the current version of the Department's CDBG Grant Administration Manual. The
Department, at its sole discretion, may approve a deferral of certain elements of this
requirement.
(v) For any Projects or portions thereof that the Grantee intends to contract or
subcontract to a third party, the Grantee submits to and obtain approval from the
Department an acceptable interlocal / subrecipient agreement executed between the
parties.
Section 18. JURISDICTION AND VENUE
This Contract is governed by the laws of Montana. The parties agree that any litigation concerning
this Contract must be brought in the First Judicial District in and for the County of Lewis and Clark,
State of Montana, and each party shall pay its own costs and attorney fees.
Section 19. DEBARMENT
A. The Grantee certifies and agrees to ensure during the term of this Contract that neither it nor
its principals, contractors, subcontractors, or subrecipient entities are debarred, suspended,
proposed for debarment, declared ineligible, or voluntarily excluded from participation in this
Contract by any governmental department or agency.
B_ The Grantee certifies and agrees to ensure during the term of this Contract that neither it nor
its principals, contractors, subcontractors, or subrecipient entities are debarred, suspended, or
otherwise excluded from or ineligible for participation in Federal assistance programs under
Executive Order 12549, "Debarment and Suspension."
Section 20. HOLD HARMLESS AND INDEMNIFICATION
Neighborhood Stabilization Program Grant I I of 17 Contract# MT-NSP-007-0 1 -001
Montana Department of Commerce City of Kalispell
The Grantee shall protect, defend, and save the state, its elected and appointed officials, agents, and
employees, while acting within the scope of their duties as such, harmless from and against all
claims, liabilities, demands, causes of action, and judgments (including the cost of defense and
reasonable attorney fees) arising in favor of or asserted by third parties on account of damage to
property, personal injury, or death which injury, death, or damage, in whole or in part, arises out of
services performed or omissions of services in any way results from the negligent acts or omissions
of the contractor, it agents, or subcontractors.
Section 21. INSURANCE
A. General Requirements. Grantee shall maintain, and shall assure that its representatives,
assigns, and subcontractors maintain, for the duration of this Contract, at their cost and
expense, primary liability insurance against claims for injuries to persons or damages to
property, including contractual liability, which may arise from or in connection with the
performance of the duties and obligations in this Contract by Grantee, its agents, employees,
representatives, assigns, or subcontractors. This insurance shall cover such claims as may be
caused by any negligent act or omission. The State, its officers, officials, employees, and
volunteers are to be covered as additional insured's for all claims arising out of the use of
grant proceeds provided by the State of Montana.
B. Primary Insurance. Grantee's insurance coverage shall be primary insurance with respect to
the State of Montana, its elected or appointed officers, officials, employees, or volunteers and
shall not contribute with it.
C. General Liability Insurance. At its sole cost and expense, Grantee shall purchase occurrence
coverage with minimum combined single limits of $1 million per occurrence and $2 million
aggregate per year, or as established by statutory Tort limits of $750,000 per claim and
$1,500,000 per occurrence as provided by a self-insurance pool insuring counties, cities, or
towns, as authorized under Section 2-9-21 I, MCA.
D. Professional Liability insurance. The Grantee shall assure that any representatives, assigns,
and subcontractors performing professional services under this Contract purchase occurrence
coverage with combined single limits for each wrongful act of $1 million per occurrence and
$2 million aggregate per year Note: if "occurrence" coverage is unavailable or cost prohibitive,
the Grantee may provide "claims made" coverage provided the following conditions are met:
(1) the commencement date of the contract must not fail outside the effective date of
insurance coverage and it will be the retroactive date for insurance coverage in future years;
Neghborhood Stabihzaton Program Grant 12 Uf 17 Contract # MT-NSP-007-0 1 -001
Montana Department of Commerce City of Kalispe I
and (2) the claims made policy must have a three (3) year tail for claims that are made (filed)
after the cancellation or expiration date of the policy.
E. Property Insurance. At its sole cost and expense, the Grantee shall maintain property and
hazard insurance, including course of construction coverage, and earthquake insurance in areas
where there is a shaking level above IOg
(http://rmtd.mt.gov/aboutg5/publications/files/NEHRPado, for loss or damage for any building
and all related improvements and contents therein on the premises on a replacement cost
basis throughout the term of the contract.
F. General Provisions. All insurance coverage shall be placed with a carrier licensed to do
business in the State of Montana or by a domiciliary state and with a Best's rating of at leastA-,
or by a public entity self -insured program either individually or on a pool basis as provided by
Title 2, MCA. All certificates and endorsements are to be received by the Department prior
to beginning any activity provided for under this Contract. Grantee shall notify the
Department immediately of any material change in insurance coverage, such as changes in
limits, coverage, change in status of policy, etc. The Department reserves the right to request
complete copies of Grantee's insurance policy at any time, including endorsements.
Section 22. CONTRACT AMENDMENT
A. Except as otherwise set forth herein, this Contract may not be enlarged, modified, or altered
except upon written agreement by all parties to the Contract.
B. The Department will agree to an amendment only if the Grantee clearly demonstrates that the
modification is justified and will enhance the overall impact of the original Project. The
Department will consider each request to determine whether the modification is substantial
enough to necessitate reevaluating the Project's original ranking. If warranted, the
Department will analyze the impact of the proposed modification on the scores assigned to
the Grantee's application in the original grant competition.
C. The Department will consider amendments to the SCOPE OF ACTIVITIES or the BUDGET
for additional activities or improvements that are similar to the major components under
Section 6 SCOPE OF ACTIVITIES.
D. If the Department determines that a proposed amendment represents a substantial change in
the Project activities proposed in the original application for NSP funds, the Grantee will be
required to submit a separate NSP Application for consideration by the Department.
Neighborhood Stabilization Program Grant 33 of 's 7 Contract # MT-NSP-007-0 1 -001
Montana Department of Commerce City of Kalispell
Section 23. PROPERTY MANAGEMENT
Title to real property or equipment acquired under this Contract or a subcontract thereto will vest,
upon acquisition, in the Grantee or subgrantee, respectively. The Grantee or subgrantee shall use,
manage, and dispose of this property or equipment in accordance with the applicable requirements set
forth in 24 CFR Parts 85 and 570. All real property within the Grantee's control that was acquired or
improved in whole or in part using the NSP funds awarded pursuant to this Contract shall be subject
to the standards set forth in 24 C.F.R. § 570.505 during the duration of this Contract term and for five
years after closeout of the Project. In all cases in which equipment acquired pursuant to this Contract
is sold, the proceeds shall be program income.
Section 24. TERMINATION OF CONTRACT
This Contract may only be terminated in whole or in part as follows:
A. The Department may, by written notice to the Grantee, terminate this Contract in whole or
in part at any time the Grantee or any of its contractors, subcontractors, or subrecipient
entities fails to perform this Contract or materially fails to comply with any term of this
Contract, whether stated herein or in any applicable local, state or federal law, regulation,
administrative directive, procedure, ordinance, or resolution. Upon such failure(s), the
Department may take one or more of the following actions, as appropriate in the
circumstances:
(i) Temporarily withhold cash payments pending correction of the deficiency by the
Grantee or more severe enforcement action by the Department;
(ii) Disallow all or part of the cost of the activity or action not in compliance;
(iii) Wholly or partly suspend or terminate the grant for the Project;
(iv) Withhold further grants to the Project or to the Grantee;
(v) Take other remedies that may be legally available.
Any costs or expenses incurred by the Grantee from obligations arising during a suspension
or after termination of the grant pursuant to this Section are not allowable unless the
Department expressly authorizes them in the notice of suspension or termination or
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Montana Department of Commerce City of Kalispell
subsequently in writing thereafter. Other necessary and not reasonably avoidable Grantee
costs incurred during suspension or after termination are allowable if:
(1) They result from obligations properly incurred by the Grantee before the effective
date of suspension or termination, are not in anticipation of it, and in the case of a
termination, noncancellable; and
(2) The costs would be allowable if the award were not suspended or expired normally
at the end of the funding period in which the termination takes effect.
S. The Department may terminate this Contract in whole or in part at any time with the
consent of the Grantee, in which case the parties shall agree upon the termination
conditions, including the effective date and, in the case of partial termination, the portion of
this Contract to be terminated;
C. The Grantee may terminate this Contract in whole or in part at any time upon written
notification to the Department, setting forth the reasons for such termination, the effective
date, and in the case of partial termination, the portion of the Contract to be terminated.
However, if, in the case of a partial termination, the Department determines that the
remaining portion of the award will not accomplish the purposes for which the award was
made, the Department may terminate the award in its entirety under paragraph (a) of this
section.
D. The Department may, at its sole discretion, terminate or reduce the scope of this Contract
if available funding is eliminated or reduced for any reason. If a termination or modification is
required, the Department will, to the extent permitted by available NSP funds, compensate the
Grantee for eligible work elements the Grantee has completed and for approved, eligible,
reasonable, and necessary expenses incurred by the Grantee as of the revised termination
date. The Department will give the Grantee written notice of the effective date of the
modification or termination of this Contract and, if a reduction in funding is required, will
provide the Grantee with a modified Project budget.
Section 25. COMPLIANCE WITH WORKERS' COMPENSATION ACT
Grantees are required to comply with the provisions of the Montana Workers' Compensation Act
while performing work for the State of Montana in accordance with Sections 39-71-401, 39-71-405,
and 39-41-417, MCA. Proof of compliance must be in the form of workers' compensation insurance,
an independent contractor's exemption, or documentation of corporate officer status. Neither the
Neighborhood Stabr xation Program Grant IS of 17
Montana Department of Commerce
Contract # MT-NSP-007-0 1 -001
City of Kalispell
Grantee nor its employees are employees of the State. This insurance/exemption must be valid for
the entire term of the Contract. Proof of compliance and renewal documents must be sent to the
Department.
Section 26. FORCE MAJEURE
Neither party shall be responsible for failure to fulfill its obligations due to causes beyond its
reasonable control, including without limitation, acts or omissions of government or military authority,
acts of God, materials shortages, transportation delays, fires, floods, labor disturbances, riots, wars,
terrorist acts, or any other causes, directly or indirectly beyond the reasonable control of the non-
performing party, so long as such party is using its best efforts to remedy such failure or delays.
Section 27. SEPARABILITY
A declaration by any court, or any other binding legal forum, that any provision of this Contract is
illegal and void shall not affect the legality and enforceability of any other provision of this Contract,
unless the provisions are mutually dependent.
Section 28. NOTICE
All notices required under the provisions of this Contract must be in writing and delivered to the
parties' liaisons as identified herein either by first class mail or personal service.
Section 29. REFERENCE TO CONTRACT
The Contract number must appear on all invoices, reports, and correspondence pertaining to this
Contract.
Section 30. NO ARBITRATION
Unless otherwise agreed to in writing or provided for by law, arbitration is not available to the
parties as a method of resolving disputes that would arise under this Contract.
Section 31. NO WAIVER OF BREACH
No failure by the Department to enforce any provisions hereof after any event of breach shall be
deemed a waiver of its rights with regard to that event, or any subsequent event. No express failure
Neighborhood Stabilization Program Grant 16 of 17 Contract# MT-NSP-007-0 1 -001
Montana Department of Commerce City of Kalispell
of any event of breach shall be deemed a waiver of any provision hereof. No such failure or waiver
shall be deemed a waiver of the right of the Department to enforce each and all of the provisions
hereof upon any further or other breach on the part of the Grantee.
Section 32. INTEGRATION
This Contract contains the entire agreement between the parties, and no statements, promises, or
inducements of any kind made by either party, or the agents of either party, not contained herein
or in a properly executed amendment hereto are valid or binding.
WITNESS OF THE TERMS SET OUT ABOVE, the parties have executed this Contract.
Pamela B. Kennedy, Mayor Date
City of Kalispell
ATTEST:
Amy Robertson, Finance Director
APPROVED AS TO FORM:
Charles all, t o Kalispell, Attorney
Department of Commerce:
Anthony J. Preite, Director U
Montana Department of Commerce
Neighborhood Stabilization Program Grant 17 of 17
Montana Department of Commerce
Date
Contract # MT-NSP-007-0 1 -001
City of Kalispell
Exhibit "B"
MONTANA DEPARTMENT OF COMMERCE
NEIGHBORHOOD STABILIZATION PROGRAM 3
CONTRACT #MT-NSP- 12-007-01 -001
This Contract is entered into by City of Kalispell, Montana, (the Grantee), IRS #81-6001281, and the
Montana Department of Commerce, Helena, Montana, (the Department).
The Grantee and the Department hereby agree to the following terms:
Section 1. PURPOSE
The purpose of this Contract is to provide funding for project activities approved by the Department
under the Neighborhood Stabilization Program (NSP) 3 for FFY 2011.
Section 2. AUTHORITY
This Contract is issued under authority of Section 90-1-103, Montana Code Annotated, and the
Administrative Rules of Montana, Title 8, Chapter 94, Subchapter 37.
Section 3. DOCUMENTS INCORPORATED BY REFERENCE
A. Department of Housing and Urban Development Federal Register Notice, Vol. 75, No. 201,
dated October 19, 2010.
B. State of Montana NSP3 Substantial Amendment, Plan Year 2011 Annual Action Plan, initial
submission, submitted to HUD February 28, 2011 and approved by HUD March 16, 2011.
C. State of Montana NSP3 Substantial Amendment Plan Year 2011 Annual Action Plan, competitive
submission, submitted to HUD June 30, 2011 and approved by HUD July 20, 2011.
D. Grantee's application for participation in NSP3including any written modifications resulting
from the review of that application by the Department, as set forth in the NSP3 approval
letter dated November 23, 2011 (collectively, the "Grantee's Program"), and the
representations contained therein, which are binding upon the Grantee.
Neighborhood Stabilization Program Grant I of 18 Contract # MT-NSP- 12-007-01 -001
Montana Department of Commerce City of Kalispell
Section 4. ACCEPTANCE OF PROGRAM REQUIREMENTS
A. The Grantee will comply with all applicable parts of the Housing and Community Development
Act of 1974, as amended, 42 U.S.C. §§ 5301, et seq.; the applicable Department of Housing and
Urban Development (HUD) regulations, including but not limited to 24 CFR Part 570 and
Form HUD-4010, and the Wall Street Reform and Consumer Protection Act of 2010, as now
in effect or as they may be amended during the term of this contract; all administrative
directives and procedures that may be established by the Department, including the most
recent version of the CDBGINSP Grant Administration Manual, as amended; and any other
applicable local, state, and federal laws, regulations, administrative directives, procedures,
ordinances, or resolutions.
B. The Grantee agrees that all contracts entered into by it for the completion of the activities
described in Section 6 SCOPE OF WORK of this Contract will require such contractors,
subcontractors, and sub recipient entities to also comply with all applicable local, state, and
federal laws, regulations, administrative directives, procedures, ordinances, resolutions; and all
administrative directives and procedures that may be established by the Department, including
the CDBGINSP Grant Administration Manual, as amended.
C. The Grantee expressly agrees to repay to the Department any funds advanced under this
Contract that the Grantee, or its contractors, subcontractors, or subrecipient entities, or any
public or private agent or agency to which they delegate authority to carry out portions of this
Contract, expends in violation of the terms of this Contract, the statutes and regulations
governing the NSP Program, or any applicable local, state, or federal requirements.
Section S. EFFECTIVE DATE AND TIME OF PERFORMANCE
A. This Contract shall take effect upon execution by the parties and will terminate upon approval
of final Project closeout by the Department, unless terminated earlier in accordance with the
terms of this Contract. The specific activities to be performed by the Grantee will be com-
pleted according to the Project Request, Implementation Schedule, and Budget to be
submitted by Grantee and approved by the Department.
Neighborhood Stabilization Program Grant 2 of 18 Contract # MT-NSP- 12-007-0 1 -001
Montana Department of Commerce City of Kalispell
B. This Contract will be in effect for the period of affordability for activity, which may be up to
twenty (20) years from the date of completion, depending on the amount of assistance
provided, as referenced in State o f Montana NSP3 Substantial Amendment Plan Year 2011 Annual
Action Plan, Ensured Continued Affordability.
Section 6. SCOPE OF WORK
As stated in the Wall Street Reform and Consumer Protection Act of 2010, NSP3 Program funds
must be fifty percent (50%) expended within two years of HUD contract date, March 16, 2013 and
fully (100%) expended within three years of HUD contract date, March 16, 2014. The Grantee will
engage in activities approved for the Grantee's Program until the total amount of NSP3 funds
expended.
The major components of the Program include the following work for the City of Kalispell:
■ Acquisition of foreclosed, vacant or abandoned single family homes in any of the
following eligible census tracts contingent upon available funding to meet HUD
requirements. When acquisitions occur in any eligible census tract, the City of
Kalispell will meet the minimum impacted units, per census tract, as established by
HUD.
(-) Census tract 30029001200 (Tract #12)
r..) Census tract 30029000900 (Tract #9)
o Census tract 30029001 100 (Tract #1 1)
■ Rehabilitation of acquired single family homes;
Resale or rental of rehabilitated units; and
■ administration of this Contract in compliance with the Project Management Plan
approved by the Department and as may be amended from time to time by mutual
agreement of the Parties.
Section 7. BUDGET
A. The Department will not disburse funds to the Grantee for a particular project in Grantee's
Program until the Grantee has submitted and the Department has approved the budget for
that project.
B. All projects require a separate budget for entry into the Disaster Recovery Grant Reporting
Neighborhood Stabilization Program Grant 3 of 18 Contract# MT-NSP- 12-007-0 1 -001
Montana Department of Commerce City of Kalispell
system (DRGR).
C. Budget adjustments must be approved in advance by the Department. For budget adjustments
of $5,000 or less, Department approval of the Request for Funds form will constitute approval
of the budget adjustment. The Grantee must describe the rationale for a budget adjustment in
the Project Progress Report and note the adjustments in the Request for Funds and Status of
Funds Report submitted with draws against the grant funding reserve. Budget adjustments in
excess of $5,000 require formal Department approval and the Contract amended. No
modification will be approved for obligation of funds beyond March 16, 2014.
D. Program Income
(i) The Grantee may retain program income received before Project closeout, but such
income must be treated as additional NSP3 funds and subject to all applicable
requirements governing the use of NSP3 funds.
(ii) If the Grantee chooses to retain program income received before Project closeout, a
program income plan in compliance with the most recent version of the Department's
Program Income Manual for Revolving Loan Funds must be developed and submitted
for review and written approval by the Department.
(iii) Grantee will record receipt and expenditure of retained program income as part of the
financial transactions of the Project.
(iv) At the end of each calendar year during the term of this Contract, the Grantee must
remit all program income balances (including investments thereof) held by the Grantee,
its contractors, subcontractors, and sub recipient entities that exceed one -twelfth of
the Department's total award to the Grantee, to be placed in the Grantee's funding
reserve.
(v) The Grantee must expend substantially all program income it receives before
requesting additional NSP3 funds. The Department will deduct the amount of program
income on hand, shown on the drawdown form, from the amount requested by the
Grantee.
(vi) If the Grantee desires to retain program income received after Project closeout, the
Grantee must execute a grant closeout agreement with the Department at the time of
closeout that describes the Grantee's responsibility for compliance with requirements
governing program income received subsequent to grant closeout.
E. Any authorized funds not expended by March 16, 2014 under this grant or otherwise
accounted for in accordance with the provisions of this Section will revert to the Department
and will be used in accordance with HUD regulations.
Neighborhood Stabilization Program Grant 4 of 18 Contract ## MT-NSP- 12-007-0 1 -001
Montana Department of Commerce City of Kalispell
Section 8. METHOD OF REIMBURSEMENT
A. The Grantee will request that the Department disburse funds when the funds are needed for
payment of eligible reimbursable costs. The amount of each request will be limited to the
amount needed. The Grantee will use NSP3 funds based upon the requirements of fifty
percent expenditure of funds by March 16, 2013, and full or 100 percent expenditure of NSP3
funds by March 16, 2014.
B. If the Department determines the Grantee has failed to satisfactorily carry out its
responsibilities under this Contract, the Department will notify the Grantee in writing of the
deficiency. If after receiving this notification, the Grantee does not remedy the deficiency
within a reasonable period of time to be specified in the notice, the Department may suspend
the Grantee's authority to draw against the reserve described in this Contract. The
suspension will continue until the Department and the Grantee agree on a plan to remedy the
deficiency.
C. The Department agrees to reimburse the Grantee as set forth in this Section for successfully
completing the activities set forth in Section 6 SCOPE OF WORK, as the Grantee incurs
approved, eligible, reasonable, and necessary Project expenses supported by adequate
documentation submitted by the Grantee and upon approval by the Department of the
Grantee's Request for Funds. In requesting reimbursement, the Grantee will follow the
instructions supplied by the Department.
D. The Department will not reimburse the Grantee for any costs incurred prior to the date of
execution of this Contract, unless previously authorized in writing by the Department, but
in no event for costs incurred prior to the date of the HUD approval date of State of
Montana NSP3 Substantial Amendment Plan Year 2011 Annual Action Plan, July 20, 2011 for
any expenses not included in the budget or an approved adjustment thereto, or for any
expenses not clearly and adequately supported by the Grantee's records.
E. The reimbursement of approved, eligible, reasonable, and necessary Project expenses incurred
is contingent upon the Grantee's completion of Section 18 SPECIAL PROJECT START-UP
CONDITIONS.
R The Department will not release any NSP3 funds to the Grantee until the Grantee has
obtained firm commitments for all other financial resources to be involved in the Project. The
Grantee may not expend or obligate any NSP3 funds, other than for administrative purposes,
Neighborhood Stabilizat on Program Grant 5 of 18 Contract # MT-NSP- 12-007-0 1 -001
Montana Department of Commerce City of Kalispell
until the Department determines that this condition has been satisfied.
G. As further set forth in Section 24 TERMINATION OF CONTRACT, if the Grantee fails to or
is unable to comply with any of the terms and the conditions of this Contract, any costs
incurred will be the Grantee's sole responsibility.
H. The Department may withhold two percent (2%) of the total authorized grant amount until all
tasks outlined in Section 6 SCOPE OF WORK are completed and approved and the Grantee's
Project Completion Report is received and approved by the Department. The Department
will disburse this withholding upon receipt and approval by the Department of the Grantee's
Project Completion Report. Prior to receipt of the Project Completion Report, the
Department liaison may authorize release of part or all of the withholding when situations
occur that would result in an undue financial hardship on the Grantee, provided the Grantee
has demonstrated effective overall management of this Project and, when applicable,
satisfactorily managed any earlier NSP3 projects. If the Grantee fails to submit a Project
Completion Report within the 60 days, the Department may consider whether these
remaining funds should be reallocated by the Department to other unfunded or inadequately
funded activities, whether or not related to Section 6 SCOPE OF WORK set forth herein or
to the Grantee.
I. If actual total cost of completing the Project is less than has been projected by the Grantee in
its Project budget or an approved adjustment thereto, the Department, at its discretion, may
reduce the amount of NSP3 grant funds to be provided to the Grantee accordingly. If actual
construction bids are less than the estimates included in its Project budget, the construction
portion of the budget will be automatically adjusted to reflect the bid price, plus a ten percent
contingency. At the Department's sole discretion, the difference between actual Project costs
and the original grant award may be reallocated to other unfunded or inadequately funded
NSP3 Projects, whether or not related to Section 6 SCOPE OF WORK set forth herein or to
the Grantee's Program.
J. If needed, the Grantee's travel expenses, meals, and lodging will be reimbursed at the
prevailing local rate at the time such expense is incurred.
K. Unless otherwise stated herein, the Department is allowed IS working days to process a
Request for Funds once the Department has received adequate supporting documentation.
The Grantee shall provide banking information at the tkme of Contract execution in order
to facilitate electronic funds transfer payments. The Department may withhold payments to
the Grantee if the Grantee has breached the terms of this Contract.
Neighborhood Stabilization Program Grant 6 of 18 Contract# MT-NSP- 12-007-0 1 -001
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L. If the Department determines that the Grantee has failed to satisfactorily carry out its
responsibilities under this Contract, the Department may withhold reimbursement to the
Grantee until such time as the Department and the Grantee agree on a plan to remedy the
deficiency.
M. If any obligations remain as of the date of Project closeout, the Department shall prepare and
the parties shall execute a Closeout Agreement specifying the conditions and requirements
governing those remaining obligations, in accordance with the requirements set forth in 24
CFR § 570.509(c).
Section 9. REPORTING REQUIREMENTS
A. UPDATE REPORT
(i) During the term of this Contract, the Grantee shall submit update reports by the
deadlines set by HUD and the Department for the NSP3 Program. This report shall
follow the report format specified in the most recent version of the CDBGINSP Grant
Administration Manual, and shall describe the status of the Project with respect to the
activities set forth in Section 6 SCOPE OF WORK, including, at a minimum, the
percentage complete, costs incurred, funds remaining, number of units assisted, and
projected completion date. The report must also describe any significant problems
encountered in carrying out the Project and the scope of any necessary modifications
the Grantee is requesting in the Project scope of work, implementation schedule, or
budget.
(ii) The Department, at its sole discretion, may decline to honor any Request for Funds if
the required update report has not been timely submitted to and approved by the
Department.
B. PROJECT PROGRESS REPORTING
During the term of this Contract, the Grantee will submit a Project Progress Report with
any Requests for Funds submitted to the Department. This report will describe the use of
the funds requested for each administrative and activity line item. The report should also
describe any anticipated changes in the budgeted amounts.
C. STATUS OF FUNDS REPORTING
Neighborhood Stab lizaaon Program Grant 7 of 18
Montana Department of Commerce
Contract # MT-NSP- 12-007-01 -001
City of Kalispell
During the term of this Contract, the Grantee will submit a Status of Funds Report with
any Requests for Funds submitted to the Department.
D. PROJECT COMPLETION REPORT
Within 60 days after the completion of the Project, the Grantee will prepare and submit to the
Department a Project Completion Report in the form prescribed by the Department. The
Project Completion Report will describe the total costs incurred for the Project, identify the
final completion date, summarize any significant problems encountered in carrying out the
Project, provide the final information for each item set forth in paragraph (a) in this Section,
and describe how the Grantee has fulfilled all requirements as set forth in the most current
version of the CDBGINSP Grant Administration Manual, Project Closeout. Within 30 days of
approving the Project Completion Report, the Department will issue the Notice of Project
Closeout.
Section 10. LIAISONS
All project management and coordination on behalf of the Department shall be through a single point
of contact designated as the Department's liaison. Grantee shall designate a liaison that will provide
the single point of contact for management and coordination of Contractor's work. All work
performed pursuant to this Contract shall be coordinated between the State's liaison and the
Contractor's liaison. The liaisons for this Contract are:
For the Department:
Andrew Chanania (or successor)
NSP Program, MDOC
301 S. Park Ave.
P.O. Box 200523
Helena, MT 59620-0523
406-841-2770
For the Grantee:
Marney McCleary (or successor)
Community Action Partnership
P.O. Box 8300
Kalispell, MT 59904-1300
(406) 758-541 I
Ne ghborhood Stabilization Program Grant 8 of 18
Montana Department of Commerce
Contract # MT-NSP- 12-007-0 1 -001
City of Kalispell
Section 1 I. ACCESS TO AND RETENTION OF RECORDS
A. The Grantee shall create and maintain records of the services covered by this Contract,
including but not limited to financial records, supporting documents, and such other records
as are required by law or other authority, and to provide the Department, HUD,
Comptroller General of the United States, Montana Legislative Auditor, or their authorized
agents access to any records necessary to determine contract compliance. (Mont. Code
Ann. § 18-1-1 18.)
B. The Grantee agrees to create and retain records supporting the services rendered or
supplies delivered for a period of four (4) years after either the completion date of this
Contract or the conclusion of any claim, litigation, or exception relating to this Contract
taken by the State of Montana or third party, whichever is later. These records will be kept
in the Grantee's offices in Kalispell, Montana.
C. The Grantee agrees to include in first -tier subcontracts under this Contract a clause
substantially the same as paragraphs I I (a) and (b).
Section 12. PROJECT MONITORING
The Department or any of its authorized agents may monitor and inspect all phases and aspects of the
Grantee's performance to determine compliance with Section 6 SCOPE OF WORK, and other
technical and administrative requirements of this Contract, including the adequacy of the Grantee's
records and accounts. The Department will advise the Grantee of any specific areas of concern and
provide the Grantee opportunity to propose corrective actions acceptable to the Department.
Section 13. COMPLIANCE WITH NON-DISCRIMINATION LAWS
The Grantee must, in performance of work under this Contract, fully comply with all applicable
federal, state, or local laws, rules, and regulations, including but not limited to the Montana Human
Rights Act, the Civil Rights Act of 1964, the Age Discrimination Act of 1975, the Americans with
Disabilities Act of 1990, Section 109 of the Housing And Community Development Act of 1974,
Section 3 of the Housing and Urban Development Act of 1968, Executive Order 11246 of Sept. 24,
Neighborhood Stabilization Program Grant 9 of 18 Contract ## MT- NSP- 12-007-0 1 -001
Montana Department of Commerce City of Kalispell
1965, and Section 504 of the Rehabilitation Act of 1973. Any contracting, subletting, or
subcontracting by the Grantee subjects contractors, subcontractors, and sub recipient entities to the
same provision. In accordance with Mont. Code Ann. § 49-3-207, the Grantee agrees that the hiring
of persons to perform this Contract will be made on the basis of merit and qualifications and there
will be no discrimination based upon race, color, religion, creed, political ideas, sex, age, marital status,
physical or mental disability, or national origin by the persons performing this Contract.
Section 14. ACCOUNTING, COST PRINCIPLES, AND AUDITING
A. The Grantee, in accordance with Section 18-4-31 1, MCA and other authorities, must maintain
for the purposes of this Contract an accounting system of procedures and practices that
conforms to Generally Accepted Accounting Principles (GAAP).
B. The Department or any other legally authorized governmental entity or their authorized
agents may, at any time during or after the term of this Contract, conduct, in accordance with
Sections 2-7-503, 5-13-304, and 18-1-1 18, MCA and other authorities, audits for the purposes
of ensuring the appropriate administration, expenditure of the monies, and delivery of services
provided through this Contract.
Section 15. AVOIDANCE OF CONFLICT OF INTEREST
A. The Grantee will comply with the provisions of the applicable HUD regulations of 24 C.F.R.
Parts 84, 85, and 570.611, and with sections 2-2-121, 2-2-201, 7-3-4256, 7-3-4367, 7-5-2106,
and 7-5-4109, MCA, (as applicable) regarding the avoidance of conflict of interest.
13. The Grantee agrees that none of its officers, employees, or agents will solicit or accept
gratuities, favors or anything of monetary value from contractors, subcontractors, or potential
contractors and subcontractors, who provide or propose to provide services relating to the
project funded under this Contract.
C. The Grantee shall promptly refer to the Department any credible evidence that a principal,
employee, agent, contractor, sub -grantee, subcontractor, or other person has submitted any
false claim or has committed any criminal or civil violation of laws pertaining to fraud, conflict
of interest, bribery, gratuity, or similar misconduct involving funds provided under this
Contract.
Neighborhood Stabilization Program Grant 10 of 1a Contract# MT-NSP- 12-007-01 -001
Montana Department of Commerce City of Kalispell
Section 1 G. OWNERSHIP AND PUBLICATION OF MATERIALS
A. All reports, information, data, and other materials prepared by the Grantee, or any of its
contractors or subcontractors, in furtherance of this Contract are the property of the
Grantee and the Department, which both have the royalty -free, nonexclusive, and irrevocable
right to reproduce, publish or otherwise use, and to authorize others to use, in whole or part,
such property and any information relating thereto. No material produced in whole or in part
under this Contract may be copyrighted or patented in the United States or in any other
country without the prior written approval of the Grantee and the Department
B. To the extent the funds awarded under this Contract will be used by any small business firm
or non-profit organization, as defined in 37 C.F.R. 401.2, such firm(s) or organization(s) are
subject to the standard patent rights clause set forth in its entirety in 37 C.F.R. 401.14 and
specifically incorporated herein by this reference.
Section 17. ASSIGNMENT, TRANSFER, AND SUBCONTRACTING
The Grantee may not assign, transfer, or subcontract any portion of this Contract without prior
written approval by the Department. Grantee accepts responsibility for the adherence to the terms
of this Contract by such contractors, subcontractors, or subrecipient entities and by any public or
private agents or agencies to which it delegates authority to carry out any portion(s) of this Contract.
Section 18. SPECIAL PROJECT START-UP CONDITIONS
A. The Grantee will not obligate or utilize funds for any activities provided for by this Contract
until:
(i) The Grantee completes an Environmental Review Record and the Department issues a
Notice of Release of Funds; however, upon receiving written authorization from the
Department, the Grantee may incur administrative costs necessary for the preparation
of the Environmental Review Record and for planning activities defined as exempt
under 24 CFR Part 58.34.
Neighborhood Stabilizat-on Program Grant 1 I cf IS Contract # MT-NSP- 12-007-0 1 -001
Montana Department of Commerce City of Kalispell
(ii) The Grantee submits to the Department evidence of the firm commitment of the
other financial resources necessary for the completion of the Project as defined in
Section 6 SCOPE OF WORK and its Project Implementation Schedule, within its
Project Budget.
(iii) The Grantee submits to the Department and the Department approves an acceptable
Project Management Plan, Implementation Schedule, and Program Income Plan.
(iv) The Grantee completes the civil rights activities described in the current version of
the Department's CDBG/NSP Grant Administration Manual. The Department, at its
sole discretion, may approve a deferral of certain elements of this requirement.
(v) For any Projects or portions thereof that the Grantee intends to contract or
subcontract to a third party, the Grantee submits to and obtain approval from the
Department an acceptable interlocal/ sub recipient agreement executed between the
Section 19. HOLD HARMLESS AND INDEMNIFICATION
The Grantee shall protect, defend, and save the state, its elected and appointed officials, agents, and
employees, while acting within the scope of their duties as such, harmless from and against all
claims, liabilities, demands, causes of action, and judgments (including the cost of defense and
reasonable attorney fees) arising in favor of or asserted by third parties on account of damage to
property, personal injury, or death which injury, death, or damage, in whole or in part, arises out of
services performed or omissions of services in any way results from the negligent acts or omissions
of the contractor, it agents, or subcontractors.
Section 20. INSURANCE
A. General Requirements. Grantee shall maintain, and shall assure that its representatives,
assigns, and subcontractors maintain, for the duration of the Contract, at their own cost and
expense, liability insurance against claims for injuries to persons or damages to property which
may arise from or in connection with the performance of the duties and obligations in the
Contract by Grantee, its agents, employees, representatives, assigns, or subcontractors. This
insurance shall cover such claims as may be caused by any negligent act or omission. The
Neighborhood Stabilization Program Grant 17 of 18 Contract# MT-NSP- 12-007-01 -001
Montana Department of Commerce City of Kalispell
State, its officers, officials, employees, and volunteers are to be covered as additional insured's
for all claims arising out of the use of grant proceeds provided by the State of Montana.
B. General Liability Insurance. At its sole cost and expense, the Grantee shall purchase
occurrence coverage with minimum combined single limits of $1 million per occurrence and
$2 million aggregate per year, or as established by statutory Tort limits of $750,000 per claim
and $1,S00,000 per occurrence as provided by a self-insurance pool insuring counties, cities,
or towns, as authorized under Section 2-9-21 I, MCA.
C. Professional Liability Insurance. The Grantee shall assure that any representatives, assigns, and
subcontractors performing professional services under this Contract purchase occurrence
coverage with combined single limits for each wrongful act of $1,000,000 per occurrence and
$2,000,000 aggregate per year. Note: if "occurrence" coverage is unavailable or cost
prohibitive, the Contractor may provide "claims made" coverage provided the following
conditions are met: (1) the commencement date of the contract must not fall outside the
effective date of insurance coverage and it will be the retroactive date for insurance coverage
in future years; and (2) the claims made policy must have a three (3) year tail for claims that
are made (filed) after the cancellation or expiration date of the policy.
D. Property Insurance. At its sole cost and expense, the Grantee shall maintain property and
hazard insurance, including course of construction coverage, and earthquake insurance in
areas where there is a shaking level above I Og (see map at
http://rmtd.mt.gov/content/aboutus/publications/files/NEHRP.12df for loss or damage for any
building and all related improvements and contents therein on the premises on a
replacement cost basis throughout the term of the contract.
E. General Provisions. All insurance coverage shall be placed with a carrier licensed to do
business in the State of Montana or by a domiciliary state and with a Best's rating of at least A-,
or by a public entity self -insured program either individually or on a pool basis as provided by
Title 2, MCA. All certificates and endorsements are to be received by the Department prior
to beginning any activity provided for under the Contract. Grantee shall notify the
Department immediately of any material change in insurance coverage, such as changes in
limits, coverage, change in status of policy, etc. The Department reserves the right to request
Neighborhood Stabilization Program Grant 13 of 18 Contract # MT-NSP-12-007-01-001
Montana Department of Commerce City of Kalispell
complete copies of Grantee's insurance policy at any time, including endorsements.
Section 21. DEBARMENT
A. The Grantee certifies and agrees to ensure during the term of this Contractthat neither it nor
its principals, contractors, subcontractors, or sub recipient entities are debarred, suspended,
proposed for debarment, declared ineligible, or voluntarily excluded from participation in this
Contract by any governmental department or agency.
B, The Grantee certifies and agrees to ensure during the term of this Contract that neither it nor
its principals, contractors, subcontractors, or sub recipient entities are debarred, suspended,
or otherwise excluded from or ineligible for participation in Federal assistance programs under
Executive Order 12549, "Debarment and Suspension."
Section 22. CONTRACT AMENDMENT
Except as otherwise set forth herein, this Contract may not be enlarged, modified, or altered except
upon written agreement by all parties to the Contract.
Section 23. PROPERTY MANAGEMENT
Title to real property or equipment acquired under this Contract or a subcontract thereto will vest,
upon acquisition, in the Grantee or subgrantee, respectively. The Grantee or subgrantee shall use,
manage, and dispose of this property or equipment in accordance with the applicable requirements set
forth in 24 CFR Parts 85 and 570. All real property within the Grantee's control that was acquired
or improved in whole or in part using the NSP funds awarded pursuant to this Contract shall be
subject to the standards set forth in 24 C.F.R. § 570.505 during the duration of this Contract term and
for five years after closeout of the Project. In all cases in which equipment acquired pursuant to this
Contract is sold, the proceeds shall be considered program income.
Section 24. TERMINATION OF CONTRACT
This Contract may only be terminated in whole or in part as follows:
Neighborhood Stabilization Program Grant 14 of 18
Montana Department of Commerce
Contract #f MT- NSP- 12-007-0 1 -001
City of Kalispell
A. The Department may, by written notice to the Grantee, terminate this Contract in whole
or in part at any time the Grantee or any of its contractors, subcontractors, or subrecipient
entities fails to perform this Contract or materially fails to comply with any term of this
Contract, whether stated herein or in any applicable local, state or federal law, regulation,
administrative directive, procedure, ordinance, or resolution. Upon such failure(s), the
Department may take one or more of the following actions, as appropriate in the
circumstances.
(i) Temporarily withhold cash payments pending correction of the deficiency by the
Grantee or more severe enforcement action by the Department;
(ii) Disallow all or part of the cost of the activity or action not in compliance;
(iii) Wholly or partly suspend or terminate the grant for the Project;
(iv) Withhold further grants to the Project or to the Grantee;
(v) Take other remedies that may be legally available.
Any costs or expenses incurred by the Grantee from obligations arising during a suspension
or after termination of the grant pursuant to this Section are not allowable unless the
Department expressly authorizes them in the notice of suspension or termination or
subsequently in writing thereafter. Other necessary and not reasonably avoidable Grantee
costs incurred during suspension or after termination are allowable if:
(1) They result from obligations properly incurred by the Grantee before the effective
date of suspension or termination, are not in anticipation of it, and in the case of a
termination, noncanceilable; and
(2) The costs would be allowable if the award were not suspended or expired normally
at the end of the funding period in which the termination takes effect.
B. The Department may terminate this Contract in whole or in part at any time with the
consent of the Grantee, in which case the parties shall agree upon the termination
conditions, including the effective date and, in the case of partial termination, the portion of
this Contract to be terminated;
C. The Grantee may terminate this Contract in whole or in part at any time upon written
Neighborhood Stabilization Program Grant 15 of 18 Contract # MT-NSP- 12-007-0 1 -001
Montana Department of Commerce City of Kalispell
notification to the Department, setting forth the reasons for such termination, the effective
date, and in the case of partial termination, the portion of the Contract to be terminated.
However, if, in the case of a partial termination, the Department determines that the
remaining portion of the award will not accomplish the purposes for which the award was
made, the Department may terminate the award in its entirety under paragraph (a) of this
section.
D. The Department may, at its sole discretion, terminate or reduce the scope of this Contract
if available funding is eliminated or reduced for any reason. If a termination or modification is
required, the Department will, to the extent permitted by available NSPfunds, compensate the
Grantee for eligible work elements the Grantee has completed and for approved, eligible,
reasonable, and necessary expenses incurred by the Grantee as of the revised termination
date. The Department will give the Grantee written notice of the effective date of the
modification or termination of this Contract and, if a reduction in funding is required, will
provide the Grantee with a modified Project budget.
Section 25. DEFAULT
Failure on the part of either party to perform the provisions of the Contract constitutes default.
Default may result in the pursuit of remedies for breach of contract as set forth herein or as
otherwise legally available, including but not limited to damages and specific performance.
Section 26. COMPLIANCE WITH WORKERS' COMPENSATION ACT
Grantees are required to comply with the provisions of the Montana Workers' Compensation Act
while performing work for the State of Montana in accordance with Sections 39-71-401, 39-71-405,
and 39-71-417, MCA. Proof of compliance must be in the form of workers' compensation insurance,
an independent contractor's exemption, or documentation of corporate officer status. Neither the
Grantee nor its employees are employees of the State. This insurance/exemption must be valid for
the entire term of the Contract. Proof of compliance and renewal documents must be sent to the
Department.
Section 27. FORCE MAJEURE
Neither party shall be responsible for failure to fulfill its obligations due to causes beyond its
Neighborhood Stabilization Program Grant 16 of 18
Montana Department of Commerce
Contract # MT-NSP- 12-007-0 1 -001
City of Kalispell
reasonable control, including without limitation, acts or omissions of government or military authority,
acts of God, materials shortages, transportation delays, fires, floods, labor disturbances, riots, wars,
terrorist acts, or any other causes, directly or indirectly beyond the reasonable control of the non-
performing party, so long as such party is using its best efforts to remedy such failure or delays.
Section 28. SEPARABILITY
A declaration by any court, or any other binding legal forum, that any provision of this Contract is
illegal and void shall not affect the legality and enforceability of any other provision of this Contract,
unless the provisions are mutually dependent.
Section 29. NOTICE
All notices required under the provisions of this Contract must be in writing and delivered to the
parties' liaisons as identified herein either by first class mail or personal service.
Section 30. NO ARBITRATION
Unless otherwise agreed to in writing or provided for by law, arbitration is not available to the
parties as a method of resolving disputes that would arise under this Contract.
Section 3 I. REFERENCE TO CONTRACT
The Contract number must appear on all invoices, reports, and correspondence pertaining to this
Contract.
Section 32. NO WAIVER OF BREACH
No failure by the Department to enforce any provisions hereof after any event of breach shall be
deemed a waiver of its rights with regard to that event, or any subsequent event. No express failure
of any event of breach shall be deemed a waiver of any provision hereof. No such failure or waiver
shall be deemed a waiver of the right of the Department to enforce each and all of the provisions
hereof upon any further or other breach on the part of the Grantee.
Neighborhood Stabilization Program Grant 17 of 18 Contract # MT-NSP- 12-007-0 1 -001
Montana Department of Commerce City of Kalispell
Section 33. JURISDICTION AND VENUE
This Contract is governed by the laws of Montana. The parties agree that any litigation concerning
this Contract must be brought in the First Judicial District in and for the County of Lewis and Clark,
State of Montana, and each party shall pay its own costs and attorney fees.
Section 34. INTEGRATION
This Contract contains the entire agreement between the parties, and no statements, promises, or
inducements of any kind made by either party, or the agents of either party, not contained herein
or in a properly executed amendment hereto are valid or binding.
IN WITNESS OF THE TERMS SET OUT ABOVE, the parties have caused this Contract to be
executed.
17 2-1
Doug Rus II, ity Manager Date
City of Kalispell
ATTEST: � }
Rick Wills, Finance Director
APPROVED AS TO FORM:
Charles Harball ity of Kalispell, Attorney
Montana Department of Commerce
Neighborhood Stabilization Program Grant 18 of 18
Montana Department of Commerce
Contract # MT-NSP- 12-007-0 1 -001
City of Kalispell
a
Department of Commerce
Community Development Division
301 S. Park Ave * P.O Box 200523 * Helena, Montana 59620-0523
Phone 406-841-2770 * Fax 406-841.2771 * TOD 406-641-2702 * http!lcomdevmt.gow
July 20, 2012
Doug Russell, City Manager
City of Kalispell
201 First Avenue East
Kalispell MT 59901
RE: NSP contract finalized, other start up documents
City Manager Russell:
Enclosed for your records and NSP project file is your copy of contract #MT-NSP-1 2-007-01 -001
between Montana Department of Commerce and City of Kalispell, signed by all parties.
Please call if you have further questions.
Andrew Chanania
Montana Department of Commerce
406 841 2551
Cc: Katharine Thompson, City of Kalispell Community Development Manager
BRIAN SCHWEITZER, GOVERNOR
Exhibit "C"
Neighborhood Stabilization Program 1
Program Income Plan
Grantor "Commerce"
Montana Department of Commerce
Community Development Division
Grantee "the City"
City of Kalispell, Montana
201 V Avenue East, Kalispell, MT 59901
Sub -Recipient "NWMT"
Montana Homeownership Network
dba NeighborWorks Montana
17 51h Street South
Great Falls, MT 59401
Grantor Contact
Jennifer Olson
Division Administrator
Community Development Division
406-841-2773
jeolson@mt.gov
Grantee Contact
Doug Russell
City Manager
406,758-7703
drussell@kalispell.com
Sub -Recipient Contact
Maureen Rude
Executive Director
406.458.8704
mrude@nwmt.org
Need for Plan Governing Neighborhood Stabilization Program (NSP) Program Income
The purpose of this plan is to establish guidelines on the policies and procedures for the administration
and utilization of program income received as a result of activities funded under the Neighborhood
Stabilization Program (NSP).
NSP1 is authorized under Title III of Division B of the Housing and Economic Recovery Act of
2008 (HERA) and under the heading of the Emergency Assistance for Redevelopment of
Abandoned and Foreclosed Homes. HERA provides under a rule of construction that, unless it is
otherwise stated, grants made under the NSP are considered to be Community Development
Block Grant (CDBG) funds.
This NSP Program Income Plan is intended to satisfy the requirements specified in federal
statute and regulation at Section 104(j) of the Housing and Community Development Act ("the
Act"), as amended in 1992 and 24 Code of Federal Regulations (CFR) 570.489 (e)(3) and of
Title III of Division B of HERA.
These statutory and regulatory sections permit the Grantee and Sub -Recipient to retain NSP
Program Income generated by eligible NSP activities pursuant to HERA. The eligible NSP
activities shall benefit low-, moderate-, and middle -income (LMMI) individuals and families as
described in the Grantee's application and Exhibit B of the NSP Standard Agreement, and shall
consist of:
NSP Program Income Plan, updated December 18, 201S
• Eligible Use A: Financing Mechanisms
Eligible Use A may only be used for financing mechanisms to acquire an eligible
property and funds cannot be used for foreclosure prevention.
• Eligible Use B: Acquisition Rehabilitation
• Program Administration and Planning (in combination with an eligible use).
Acceptance of the NSP Program Income Plan
The NSP Program Income Plan details the proposed uses of NSP Program Income and confirms the
jurisdiction's required compliance with state and federal regulations.
Program Income Defined
Program income is defined within federal regulations at 24 CFR 570.500(a), which specify that
NSP program income is gross income received by the Grantee that has been directly generated
from the use of NSP funds. There are limitations and requirements based on the NSP activity
that generated the program income and on the date the income is received.
1. Examples of program income include, but are not limited to, the following:
• Proceeds from the disposition by sale or long-term lease of real property purchased or
improved with NSP funds;
• Proceeds from the disposition of equipment purchased with NSP funds;
• Gross income from the use or rental of real or personal property acquired by the
grantee with NSP funds, less costs incidental to generation of the income;
• Gross income from the use or rental of real property, owned by the grantee that was
constructed or improved with NSP funds, less costs incidental to generation of the
income;
• Payments of principal and interest on loans made using NSP funds;
• Proceeds from the sale of loans made with NSP funds;
• Proceeds from sale of obligations secured by loans made with NSP funds;
• Interest earned on funds held in a revolving fund account;
• Interest earned on program income pending its disposition; and
• Funds collected through special assessments made against properties owned and
occupied by households not of low and moderate income, where the assessments are
used to recover all or part of the NSP portion of public improvement.
2. Program income does not include, but is not limited to, the following:
• Interest earned on grant advances from the U.S. Treasury. Any interest earned on grant
NSP Program Income Plan, updated December 18, 2015
advances is required to be returned to the U.S. Treasury;
• Proceeds from fund-raising activities carried out by subrecipients that are receiving NSP
assistance to implement eligible activities;
• Funds collected through special assessments that have been made to recover the non-
NSP portion of a public improvement;
• Proceeds from the disposition by the grantee of real property that has been acquired or
improved with NSP funds when the disposition occurs after grant close-out for
entitlement grantees;
• Proceeds from the disposition of real property that has been acquired or improved with
NSP funds, where the disposition occurs within a five-year period after expiration of the
agreement between the grantee and subrecipient.
Program Income Plan
The City will comply with the following to use program income funds according to NSP regulations and
guidelines.
1. Restrictions
Program Income funds are limited by the following restrictions:
• 100% of all program income funds receipted must be used toward an eligible use as established
below.
• NSP funds must be expended on project activities that meet a National Objective.
• At least 25% of all program income funds receipted must be used to benefit low income
households (less than 50% Area Median Income) and must be tracked to report compliance to
Commerce).
• No more than 10% of all program income funds receipted may be used for expenses related to
program administration.
• All NSP program income funds must follow the NSP Federal Register Notice, State of Montana
Substantial Amendment, NSP Grant Administration Manual, the applicable Department of
Housing and Urban Development (HUD) regulations, and all other applicable federal regulations.
2. Eligible Uses
The City has identified the following Eligible Uses(s) for which program income may be used. Only
the following may be used as eligible expenditures:
• Eligible Use A: Financing Mechanisms
Eligible Use A may only be used for financing mechanisms to acquire an eligible property
and funds cannot be used for foreclosure prevention.
• Eligible Use B: Acquisition Rehabilitation
• Program Administration and Planning (in combination with an eligible use)
s. gash Managemkz
NSP Program Income Plan, updated December 18, 2015
All NSP program income generated by NSP-funded activities will be retained in a separate interest
bearing NSP program income account held at the local level.
All NSP program income must be disbursed for eligible NSP activities.
The Grantee will be allowed to use the NSP program income to meet the used/obligated
milestones. Furthermore, any NSP program income funds that are not shown to be
used/obligated on the Grantee's next NSP Program Income Report may be returned to
Commerce. Program Income should be expended in 12 months of receipt or returned to
Commerce, unless otherwise agreed upon between Commerce and the City. This information
will specifically be included in the program income reports submitted to Commerce.
If program income generated from all sources does not exceed $25,000 in a program
year for entitlement or state the grantee shall utilize the funds for administration or
include the funds in another CDBG activity if reviewed and approved by Commerce.
(See section 6. Reuses of NSP Program Income.)
* If program income generated exceeds $250,000 per year, the 25% set -aside
requirements must be met.
The Grantee will incorporate within subrecipient agreements such provisions as are necessary to
ensure compliance with the requirements of this paragraph, including the requirement that
program income be remitted to Commerce. The City has entered into a Sub -Recipient Interlocal
Agreement with NeighborWorks Montana (NWMT) to administer the NSP 3 Program Income.
4. General Administration (GA) Cost Limitation
The Grantee will be allowed general administrative costs of up to ten percent (10%) of all NSP
Program Income expended during each fiscal year. This information will be included in program
income reports submitted to Commerce.
5. Financial Management
The financial process for handling of funds following receipt of program income involves NWMT
Fiscal Department staff. Staff registers receipt of NSP program income. Fiscal staff deposits the
program income checks in the designated fund. It is tracked through NWMT's Abila Software.
The acquisition of foreclosed, vacant or abandoned properties follows a process identified in the
City's Sub -Recipient Interlocal Agreement approved by the City Manager and the NWMT Executive
Director. It authorizes NWMT as the Sub -Recipient to approve and execute the purchase
transactions of foreclosed, vacant or abandoned properties. NWMT is also authorized to execute
contracts for rehabilitation and to execute sales documents to income -eligible households.
NWMT has a subject property appraised and inspected for suitability and will recommend
acquisition. Maximum purchase price is set at one percent less than the appraised value of the
property. A closing is scheduled and the property is insured, slated for snow and landscape
management, and utilities are transferred.
Following acquisition, NWMT creates a final scope of work from the completed inspections. Bids are
generated via contractor(s) and procured through the NSP/CDBG procurement process. The
Construction Agreement is created, reviewed and approved by NWMT staff and signed by the
contractor(s). NWMT is also responsible for contract management. All related materials are
provided to the City upon request.
NSP Program Income Plan, updated December 18, 2015
The Purchase Requisition, with accompanying executed Construction Agreement, is entered into
NWMT's Abila accounting system and then routed for approval through the following channels:
Community Land Trust Coordinator, Housing Network Specialist and Executive Director, according to
NWMT's Fiscal Policies and Procedures.
Inspections and building permit activities must be conducted prior to payment being issued for work
completed. Contracts are monitored by NWMT and activities are reported to the City for compliance
during regular reporting.
When rehabilitation is complete, an appraisal is ordered to assist NWMT staff in determining
purchase price. NWMT notifies current income -eligible applicants of property availability on a first -
come, first -served basis. NWMT performs applicant eligibility review and approval. Closings are
scheduled and conducted with the title company and the property is transferred to the new owner.
Program income is received from the sale and checks are deposited as noted above.
NWMT provides the City copies of all required documents following the property closing.
Recaptured funds would also be deposited and utilized to further the NSP program as noted above.
The Grantee and Sub -Recipient are audited annually via independent auditing firms for federal and
financial compliance.
Program income will remain with the NWMT and will be used according to NSP eligible uses
specified in section 3. Cash Management of this plan, Appendix D, A. Management Plan, of the Sub -
Recipient Interlocal Agreement, or unless otherwise amended by the City for use or NWMT fails to
comply with the requirements to reuse the funding. NWMT will use funds for NSP activities, or
funds will be returned to the City (if under $25,000) to be used for other CDBG projects or as
approved by Commerce.
All program income generated by activities funded by NSP grants will be placed in a separate
interest bearing NSP program income account. There will be no commingling of NSP program
income funds with other program income funds.
6, Reporting
The Grantee and sub -recipient shall comply with all NSP reporting requirements including NSP
Program Income Annual Report to Commerce as required and identified in the Frist Amended and
Restated Sub -Recipient Interlocal agreement.
7. Federal Overlay Compliance
NWMT shall ensure that the use of NSP program income under this plan complies with all federal
overlay requirements including, but not limited to:
NSP Progrem Income Plan, updated December 18, 2015
- Citizen participation
- Environmental review
- Equal opportunity
- Section 3 employment
-Lead-based paint
Plan Revisions
Labor standards
Acquisition and relocation
Procurement
Maintenance of adequate accounting and
recordkeeping systems
Commerce will consider each request to determine whether the amendment is substantial and will
analyze the impact of the proposed modification. Commerce will consider amendments to the scope of
activities and budget that have similarity to the original major components of the project. The NWMT
has the authority to propose amendments and revisions to this document with City and Commerce
approval. The Grantee agrees to update this document if additional guidance from Commerce is
received regarding the contents of the plan.
Documents Incorporated by Reference
All application materials, contracts, contract amendments, management plans, prior reporting and
certifications and resolutions submitted to Commerce remain in full force and effect for the duration of
this period of affordability.
NSP Program Income Plan, updated December 18, 201S pjy,e 6 v° 8
These certifications are made under penalty of perjury under the laws of the State of Montana.
SIGNATURE OF GRANTEE CERTIFYING OFFICIAL:
Doug Russell, City Manager
City of Kalispell, Montana
SIGNATURE OF SUB -RECIPIENT CERTIFYING OFFICIAL: LMIW� U
Maureen Rude, Executive $i ector
Montana Homeownership Network
dba NeighborWorks Montana
■ a ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ a a ■ ■ ■ ■ ■ a ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ a a a a a a a a a a ■ ■ ■ ■ ■ ■ ■ ■
ACCEPTED AND CERTIFIED
Montana Department of Commerce:
Signature Date
Printed Name / Title
NSP Program Income Plan, updated December 18, 2015 a aaz?) op V,
PROGRAM INCOME - TITLE I CERTIFICATION
Amendments to Title I of the Housing and Community Development Act require that local governments
continue to spend all program income for eligible Neighborhood Stabilization Program (NSP) grant
activities according to all Title I requirements, even after close out of the NSP project. The following
certification is to be executed by the chief local government official to certify for every program income
report to Commerce that these requirements have been met.
Certification
I hereby certify that all program income expenditures generated by NSP activities for the City of Kalispell
were expended for eligible NSP activities, according to requirements of Title I of the Housing and
Community Development Act of 1974, as required by amendments to the Act dated October, 1992.
Doug Russell, City Manager
Chief Local Government Official
Date
Maur.en Rude, Executiv irector ---
Montana Homeownership Network
dba NeighborWorks Montana
e
Date
NSP Program Income Plan, updated December 18, 2015 P.1?',. 8 r,:f 8.
Neighborhood Stabilization Program 3
Program Income Plan
Grantor "Commerce"
Montana Department of Commerce
Community Development Division
Grantee "the City"
City of Kalispell, Montana
201151 Avenue East, Kalispell, MT 59901
Sub -Recipient "NWMT"
Montana Homeownership Network
dba NeighborWorks Montana
17 5" Street South
Great Falls, MT 59401
Grantor Contact
Jennifer Olson
Division Administrator
Community Development Division
406-841-2773
jeolson@mt.gov
Grantee Contact
Doug Russell
City Manager
406.758-7703
drussell@kalispell.com
Sub -Recipient Contact
Maureen Rude
Executive Director
406.458.8704
mrude@nwmt.org
Need for Plan Governing Neighborhood Stabilization Program (NSP) Program Income
The purpose of this plan is to establish guidelines on the policies and procedures for the administration
and utilization of program income received as a result of activities funded under the NSP.
NSP 3 is authorized under Section 1497 of the Dodd -Frank Wall Street Reform and Consumer Protection
Act: Additional Assistance for the Neighborhood Stabilization Program.
This NSP Program Income Plan is intended to satisfy the requirements specified in federal statute and
regulation at Section 104(j) of the Housing and Community Development Act ("the Act"), as amended in
1992 and 24 Code of Federal Regulations (CFR) 570.489 (e) (3) and Section 1497 of the Dodd -Frank Wall
Street Reform and Consumer Protection Act: Additional Assistance for the Neighborhood Stabilization
Program.
These statutory and regulatory sections permit the Grantee and Sub -Recipient to retain for reuse, NSP
program income generated by eligible NSP activities. The eligible NSP activities shall principally benefit
low-, moderate-, and middle -income (LMMI) individuals and families, and limited to only those activities
as described in the Grantee's Application and Commerce Contract #1 MT-NSP-12-007-01-001 and
subsequent contract amendments.
Acceptance of the NSP Program Income Plan
The NSP Program Income Plan details the proposed uses of NSP Program Income and confirms the
jurisdiction's required compliance with state and federal regulations.
NSP Program Income Plan, updated December 18, 2015
Program Income Defined
Program income is defined within federal regulations at 24 CFR 570.500(a), which specify that NSP
program income is gross income received by the Grantee that has been directly generated from the use
of NSP funds. There are limitations and requirements based on the NSP activity that generated the
program income and on the date the income is received. When program income is generated by an
activity that is only partially assisted with NSP funds, the income shall be prorated to reflect the
percentage of NSP funds used.
1. Examples of program income include, but are not limited to, the following:
• Proceeds from the disposition by sale or long-term lease of real property purchased or improved
with NSP funds;
• Proceeds from the disposition of equipment purchased with NSP funds;
• Gross income from the use or rental of real or personal property acquired by the grantee with
NSP funds, less costs incidental to generation of the income;
• Gross income from the use or rental of real property, owned by the grantee that was
constructed or improved with NSP funds, less costs incidental to generation of the income;
• Payments of principal and interest on loans made using NSP funds;
• Proceeds from the sale of loans made with NSP funds;
• Proceeds from sale of obligations secured by loans made with NSP funds;
• Interest earned on funds held in a revolving fund account;
• Interest earned on program income pending its disposition; and
• Funds collected through special assessments made against properties owned and occupied by
households not of low and moderate income, where the assessments are used to recover all or
part of the NSP portion of public improvement.
2. Program income does not include, but is not limited to, the following:
• Interest earned on grant advances from the U.S. Treasury. Any interest earned on grant
advances is required to be returned to the U.S. Treasury;
• Proceeds from fund-raising activities carried out by subrecipients that are receiving NSP
assistance to implement eligible activities;
• Funds collected through special assessments that have been made to recover the non-NSP
portion of a public improvement;
• Proceeds from the disposition by the grantee of real property that has been acquired or
improved with NSP funds when the disposition occurs after grant close-out for entitlement
grantees;
• Proceeds from the disposition of real property that has been acquired or improved with NSP
funds, where the disposition occurs within a five-year period after expiration of the agreement
between the grantee and subrecipient.
Program Income Plan
MSP Program Income Plan, updated December 18, 2015
The City will comply with the following to use program income funds according to NSP regulations and
guidelines.
1. Restrictions
Program Income funds are limited by the following restrictions:
• 100% of all program income funds receipted must be used toward an eligible use as established
below.
• NSP funds must be expended on project activities that meet a National Objective.
• At least 25% of all program income funds receipted must be used to benefit low income
households (less than 50% Area Median Income) and must be tracked to report compliance to
Commerce).
• No more than 10% of all program income funds receipted may be used for expenses related to
program administration.
• All NSP program income funds must follow the NSP Federal Register Notice, State of Montana
Substantial Amendment, NSP Grant Administration Manual, the applicable Department of
Housing and Urban Development (HUD) regulations, and all other applicable federal regulations.
2. Eligible Uses
The City has identified the following Eligible Uses(s) for which program income may be used. Only
the following may be used as eligible expenditures:
• Eligible Use A: Financing Mechanisms
Eligible Use A may only be used for financing mechanisms to acquire an eligible property
and funds cannot be used for foreclosure prevention.
• Eligible Use B: Acquisition Rehabilitation
0 Program Administration and Planning (in combination with an eligible use)
3. Cash Management
All NSP program income generated by NSP-funded activities will be retained in a separate interest
bearing NSP program income account held at the local level.
All NSP program income must be disbursed for eligible NSP activities.
The Grantee will be allowed to use the NSP program income to meet the used/obligated
milestones. Furthermore, any NSP program income funds that are not shown to be
used/obligated on the Grantee's next NSP Program Income Report may be returned to
Commerce. Program Income should be expended in 12 months of receipt or returned to
Commerce, unless otherwise agreed upon between Commerce and the City. This information
will specifically be included in program income reports submitted to Commerce.
If program income generated from all sources does not exceed $25,000 in a program
year for entitlement or state the grantee shall utilize the funds for administration or
include the funds in another CDBG activity if reviewed and approved by Commerce.
(see section 6. Reuses of NSP Program Income)
NSP Program Income Plan, updated December 18, 2015
• If program income generated exceeds $250,000 per year, the 25% set -aside
requirements must be met.
The Grantee will incorporate within subrecipient agreements such provisions as are necessary to
ensure compliance with the requirements of this paragraph, including the requirement that
program income be remitted to Commerce. The City has entered into a Sub -Recipient Interlocal
Agreement with NeighborWorks Montana (NWMT) to administer the NSP 3 Program Income.
4. General Administration (GA) Cost Limitation
The Grantee will be allowed general administrative costs of up to ten percent (10%) of all NSP
Program Income expended during each fiscal year. This information will be included in program
income reports submitted to Commerce.
5. Financial Management
The financial process for handling of funds following receipt of program income involves NWMT
Fiscal Department staff. Staff registers receipt of NSP program income. Fiscal staff deposits the
program income checks in the designated fund. It is tracked through NWMT's Abila Software.
The acquisition of foreclosed, vacant or abandoned properties follows a process identified in the
City's Sub -Recipient Interlocal Agreement approved by the City Manager and the NWMT Executive
Director. It authorizes NWMT as the Sub Recipient to approve and execute the purchase
transactions of foreclosed, vacant or abandoned properties. NWMT is also authorized to execute
contracts for rehabilitation and to execute sales documents to income -eligible households.
NWMT has a subject property appraised and inspected for suitability and will recommend
acquisition. Maximum purchase price is set at one percent less than the appraised value of the
property. A closing is scheduled and the property is insured, slated for snow and landscape
management, and utilities are transferred.
Following acquisition, NWMT creates a final scope of work from the completed inspections. Bids are
generated via contractor(s) and procured through the NSP/CDBG procurement process. The
Construction Agreement is created, reviewed and approved by NWMT staff and signed by the
contractor(s). NWMT is also responsible for contract management. All related materials are
provided to the City upon request.
The Purchase Requisition, with accompanying executed Construction Agreement, is entered into
NWMT's Abila accounting system and then routed for approval through the following channels:
Community Land Trust Coordinator, Housing Network Specialist and Executive Director, according to
NWMT's Fiscal Policies and Procedures.
Inspections and building permit activities must be conducted prior to payment being issued for work
completed. Contracts are monitored by NWMT and activities are reported to the City for compliance
during regular reporting.
When rehabilitation is complete, an appraisal is ordered to assist NWMT staff in determining
purchase price. NWMT notifies current income -eligible applicants of property availability on a first -
come, first -served basis. NWMT performs applicant eligibility review and approval. Closings are
scheduled and conducted with the title company and the property is transferred to the new owner.
Program income is received from the sale and checks are deposited as noted above.
NWMT provides the City copies of all required documents following the property closing.
NSF Program Income Plan, updated December 18, 2015
Recaptured funds would also be deposited and utilized to further the NSP program as noted above.
The Grantee and Sub -Recipient are audited annually via independent auditing firms for federal and
financial compliance.
6. Reuses of NSP Program Income
The Sub -Recipient will be allowed to use earned NSP program income for eligible NSP activities in
the areas of greatest needs listed in the Grantee's Application and in Exhibit B of the NSP Standard
Agreement.
Program income will remain with the NWMT and will be used according to NSP eligible uses
specified in section 3. Cash Management of this plan, Appendix D, A. Management Plan, of the Sub -
Recipient Interlocal Agreement, or unless otherwise amended by the City for use or NWMT fails to
comply with the requirements to reuse the funding. NWMT will use funds for NSP activities, or
funds will be returned to the City (if under $25,000) to be used for other CDBG projects or as
approved by Commerce.
All program income generated by activities funded by NSP grants will be placed in a separate
interest bearing NSP program income account. There will be no commingling of NSP program
income funds with other program income funds.
7. Reporting
The Grantee and sub -recipient shall comply with all NSP reporting requirements including NSP
Program Income Annual Report to Commerce as required and identified in the Frist Amended and
Restated Sub -Recipient Interlocal agreement.
8. Federal Overlay Compliance
NWMT shall ensure that the use of NSP program income under this plan complies with all federal
overlay requirements including, but not limited to:
- Citizen participation
- Environmental review
- Equal opportunity
- Section 3 employment
- Lead -based paint
Plan Revisions
Labor standards
Acquisition and relocation
- Procurement
Maintenance of adequate accounting and
recordkeeping systems
Commerce will consider each request to determine whether the amendment is substantial and will
analyze the impact of the proposed modification. Commerce will consider amendments to the scope of
activities and budget that have similarity to the original major components of the project. The NWMT
has the authority to propose amendments and revisions to this document with City and Commerce
approval. The Grantee agrees to update this document if additional guidance from Commerce is
received regarding the contents of the plan.
Documents Incorporated by Reference
All application materials, contracts, contract amendments, management plans, prior reporting and
certifications and resolutions submitted to Commerce remain in full force and effect for the duration of
this period of affordability.
NSP Program Income Plan, updated December 18, 2015 - "
These certifications are made under penalty of perjury under the laws of the State of Montana.
SIGNATURE OF CERTIFYING OFFICIAL:
Doug Russell, City Manager
City of Kalispell, Montana
SIGNATURE OF SUB -RECIPIENT CERTIFYING OFFICIAL: -
Maureen Rude, Executive Di a for
Montana Homeownership Vtwork
dba NeighborWorks Montana
ACCEPTED
Montana Department of Commerce:
Signature
Printed Name / Title
Date
NSP Program Income Plan, updated December 18, 201S page C. cF 7
PROGRAM INCOME -TITLE I CERTIFICATION
Amendments to Title I of the Housing and Community Development Act require that local governments
continue to spend all program income for eligible Neighborhood Stabilization Program (NSP) grant
activities according to all Title I requirements, even after close out of the NSP project. The following
certification is to be executed by the chief local government official to certify for every program income
report to Commerce that these requirements have been met,
Certification
I hereby certify that all program income expenditures generated by NSP activities for the City of Kalispell
were expended for eligible NSP activities, according to requirements of Title I of the Housing and
Community Development Act of 1974, as required by amendments to the Act dated October, 1992.
Doug Russell, City Manager
Chief Local Government Official
Date
Maureen Rude, Executive V.'r
ctorMontana Homeownershipwork
dba NeighborWorks Montana
Date
NSP Program Income Plan, updated December 18, 2015 Pag;., i trf i
Exhibit "D"
This exhibit reflects the contract amendments to #MT-NSP-007-0 1 -001 and #MT-NSP- 12-007-
0 1 -00 1 as described in the Fhsl Amended and Restated Sub -Recipient Interlocal Agreement
between the Montana Department of Commerce and the City, to which this exhibit is attached.
Contract #MT-NSP-007-01-001 as amended by the properties specific:
Contract Amendment #MT-NSP-007-0 1 -00 1 A;
Contract Amendment #MT-NSP-007-01-001B;
Contract Amendment #MT-NSP-007-01 -001 C;
Contract Amendment #MT-NSP-007-01 -001 D;
Contract Amendment #MT-NSA-007-01-001E;
Contract Amendment #MT-NSP-007-01 -001 F;
Contract Amendment #MT-NSP-007-01-001G;
Contract Amendment #MT-NSP-007-0 1 -001 H;
Contract Amendment #MT-NSP-007-0 1 -0011;
Contract Amendment #MT-NSP-007-01-001J;
Contract Amendment #MT-NSP-007-01-OO1K;
Contract Amendment #MT-NSP-007-0 1 -001 L.
Contract Amendment #MT-NSP-007-01-OO1M;
Contract Amendment #MT-NSF-007-01-00IN;
Contract Amendment #MT-NSP-007-01-0010;
Contract Amendment #MT-NSP-007-0 1 -001 P;
Contract Amendment #MT-NSP-007-0 1 -00 1 P-1;
Contract Amendment #MT-NSP-007-0 1 -00 1 Q.
Contract #MT-NSP-12-007-01-001 as amended by the properties specific:
Contract Amendment #MT-NSP- 12-007-0 1 -001 A;
Contract Amendment #MT-NSP- 12-007-0 1 -001 B;
Contract Amendment #MT-NSP-12-007-01-001 C;
Contract Amendment #MT-NSP- 12-007-0 1 -001 D;
Contract Amendment #MT-NSP- 12-007-0 1 -001 E;
Contract Amendment #MT-NSP- 12-007-0 1 -00 1 F;
Contract Amendment #MT-NSP-12-007-01-001 G;
Contract Amendment #MT-NSP- 12-007-0 1 -001 H;
Contract Amendment #MT-NSP- 12-007-0 1 -0011;
Contract Amendment #MT-NSP- 12-007-0 1 -00 1 J.
All referred collectively in the First Amended and Restated Sub -Recipient Intel -local Agreement
as the "Grant Contract."
/V
Heighboiffirkso
MONTANA
Corporate Resolution Jl2019.2
The Board of Directors of Montana HomeOwnership Network, Inc., dba NeighborWorks Montana resolves that
signing authority for corporate and financial instruments is delegated to Board members Michael O'Neil, Michael
Smith, Peggy Trenk, Burt Hurwitz, Jack Prothero, James Weber, Andrea Davis, Lawrence Williams, Victoria
Matejovsky, and Julie Graham and to employees Maureen Rude, Kaia Peterson, Hannah Sidner, and Kathleen
Biggs. Corporate financial instruments require signature from one signatory with the exception of documents
pertaining to the buying or selling of property, which require signature from two signatories.
Signed
Burt urwitz, President
Witness.
,e
LOLL LC&
Maure6i Rude, Executive Director
f2m2lP.O. Box 102.5 t Great palls, MT 59403
r40VAL" ISM MAtKoufi■o VUebsite: --. nyvrllt arJ NEIGHBO RWORKS
LENDeR OPPORIUM Y (406) 761-5861 Fax (406) 403.0273 GREEN ORGAINIZ T10t4
Neighborffirkv
MONTANA
Corporate Resolution #2019-3
The Board of Directors of Montana HomeOwnership Network, inc., dba NeighborWorks Montana, resolves that
signing authority for NeighborWorks Montana lending documents, including but not limited to borrower insurance
checks and documents to be filed in the public record, is delegated to Board members Michael O'Neil, Michael
Smith, Peggy Trenk, hurt Hurwitz, lack Prothero, lames Weber, Andrea Davis, Lawrence Williams, Victoria
Matejovsky, and Julie Graham and to employees Maureen Rude, Kaia Peterson, Hannah Sidner, Kathleen Biggs,
and Kevin Lee.
Signet(
Burt Hurwitz, President
(late
i tit ess=
. a_
Maureen Rude, Executive' ° irector pate
f2l
P.O. Box 107S • Great Faits, MT 59403
td1JlL NOUS:+G iauAl N...... Webslte, vnf:l.nLvrnt.or}, NEIGHBORWORNS
LENDER OPPORTUHIIY (406', 761-5861 Fax (4061 403-0273 *GREEN ORGANIZATION