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3. Neighborhood Stabilization Program (NSP) Contract Amendment for Project A - Purchase of First Foreclosed Property201 1st Avenue East �E' Kalispell, MT 59901 406.758.7740 FOR $U51NES5, FOR LIFE: ... .�A Fax: 406J58.7758 City of Kalispell = www.kalispelf.com Office of Community & Economic Development I& 1 ; ne].1703ZI111LIj I To: The Honorable Mayor Fisher and Kalispell City Council Members Cc: Jane Howington, City Manager From: Katharine Thompson, Community Development Manager Re: Neighborhood Stabilization Program (NSP) Contract Amendments for Project A Meeting Bate: February 1, 2010 The Montana Department of Commerce, Community Development Division requires that a contract amendment be signed for each home purchased under the NSP program. Each project specific contract amendment will include the project request, schedule and budget. Each contract amendment will also be cumulative in that it will include reference to each previous project. Projects will be referred to with alphabetic nomenclature so that the first project will be called "A", the second "B" and so on. Attached to this memo please find a copy of the Neighborhood Stabilization Program Contract Amendment #MT-NSP--007-01-001 A between the City of Kalispell and the Montana Department of Commerce. BACKGROUND: The City of Kalispell has been working over a year and a half to address its policy on creating "affordable housing to meet the needs of low and moderate - income residents" specified within the Kalispell Growth Policy 2020 through the NSP program. Council has closely followed this process and given its approval and oversight every step of the way. The project is now ready to purchase a specific foreclosed and abandoned home within the City to place into the Community Land Trust. The purpose of NSP Contract Amendment is to delineate the grant expenditure specific to the first house being purchased under the NSP program (referred to as Grantee Project A). The Council has taken the following actions to date: June 15, 2009 Approval of Memorandum of Understanding between City of Kalispell and Community Action Partnership for application for Neighborhood Stabilization Program grant and creation of Community Land Trust October 5, 2009 Acceptance of Neighborhood Stabilization Program grant award October 19, 2009 Approval of budget resolution to oversee up to $4 n1illion in program. funds January 19, 2010 Approval of Sub -recipient Interlocal Agreement FISCAL IMPACT: The City handles the NSP grant as a pass-thru with Community Action Partnership responsible for accounting of grant funds and on --going implementation and reporting of the project. The NSP program allows for a 5 % administrative fee and this will be directed to CAP for the above tasks. RECOMMENDATION: City Council approve the NSP Contract Amendment #MT-- NSP-007-01 -001 A delineating the specific purchase of house number one under the Neighborhood Stabilization Program. grant. ALTERNATE RECOMMENDATION: Grant authorization to the City Manager to sign these contract amendments. Each amendment differs only in the addition of the next house and the purchase price. All purchases are consistent with the documents and criteria approved by Council (see above Council actions). Respectfully submitted, Ida harine Thompson '�ne Howington Community Development Manager City Manager Community & Economic Development Dept. COMMERCE CONTRACT # MT- ASP-007-01-001 TE AF 15 Z &I .;J fztA This Contract Amendment is entered into by and between City of Kalispell (the Grantee), IRS# 81-6001281 located at 201 !" Avenue East, Kalispell, Montana, and the Montana Department of Commerce (the Department), and located at 301 South Park, Helena, Montana, The Grantee and the Department mutually agree to amend Contract #-# MT -NSF -007., 01-001, executed on October 13, 2009 (date of original contract) as follows: I . Section 6, SCOPE OF ACTIVITIES is amended to read as follows: 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 grantee will engage in the project activities set forth in the Grantee's project request dated January 20, 2010, including a► iy written modifications resulting from the review of that request by the Department !collectively, "Grantee's Project 1 "), as set forth in Exhibit A- I , attached hereto and specifically incorporated herein by this reference. The major components of Grantee's Project I include the following work for the City of Kalispell-, Purchase foreclosed single family homes; ® Rehabilitate foreclosed single family homes; ® Provide financing mechanisms to low, moderate, middle income (at or below 120 percent area median income) individuals or households to purchase foreclosed single family homes; and the 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. Grantee's Project I will be completed according to the It schedule attached hereto as Exhibit B- I and specifically incorporated herein by this reference. Any modification to Exhibit B -I must be stjbrnitted in writing to the Department, and will not take affect until the Department has made written approval of such adjustment. 2. Section y, BUDGET is amended to read as follows: Section 7. BUDGET Neighborhood Stabilization Program Grant Amendment to Contract # MT.NSP-007-D 1 -001 Montana Department of Commerce City of Kalispell Alk (a) The total amount of NSP funds acce3sible, to the Grantee for Grantee's Project I shall not exceed $169,559.00. {b) The Department will not disburse funds to the Grantee for any other project in Grantee's Program until the Grantee has submitted and the Department has approve a . Project Request, Implementation Schedule, and Budget for that project. (c) The Grantee must provide the purchase price or after -rehabilitation value of each assisted unit. The total amount of NSP funds accessible to the Grantee for Grantee's Project I will be firmly committed by the Department upon receipt of verified documentation. (d) All projects require a separate budget for entry into the Disaster Recovery Grant Reporting system (DRGR.). (e) A copy of the preliminary budget fir Grantee's Project I is attached hereto as Exhibit C-1 and specifically incorporated herein by this reference. After construction bids are awarded or other major activity cost elements of Grantee's Project I are determined, the Grantee may, or if requested by the Department, shall provide the Department with a final budget for Grantee's Project 1, which, upon receipt and approval by the Department, will supersede the preliminary budget in Exhibit C- I and thereby be incorporated as part of this Contract. f) Budget adjustments must be approved in advance by the Department. For budget adjustments of $5,000 or less between line items of the NSP portion of Exhibit C- I, 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 $5,00© require formal Department approval and the Contract amended. No modification will be approved for obligation of funds beyond September 18, 20 10, or expenditure of funds beyond March 19, 2013. (g) Prog ram 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 ncome 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 N Neighborhood Stabilization Program Grant Amendment to Contract #MT-NSP-007-01 -001 Montana Department of Commerce City of Kalispell COMMERCE CONTRACT # MT-NSP-007-0 1 -001 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. (h) Any authorized funds not expended by March 19, 2013 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. 3. Exhibits A -1, 13-1 and C .. I New Exhibits A-1, 13-1 and C- I are attached to the Contract and specifically incorporated therein by reference. 4. All other provisions of the Contract remain in full force and effect. Jane Howington, City Manager Date City of Kalispell ATTEST: Theresa White, City Clerk APPROVED AS TO FORM: Charles I- arbal , City of Kalispell Attorney Department of Commerce: Anthony J. Preite, Director Date Montana Department of Commerce Neighborhood Stabilization Program Grant Amendment to Contract #MT-NSP-007-0 l -00 l Montana Department of Commerce City of Kalispell OPP r I NSP Exhibit A-1 Project Request 166 Barron Way, Kalispell Contract Amendment #MT-NSP-007-01 -001 A NEIGASORHOOD STABILIZATION PROGRAV PROJECT REQUEST CONTRACT #H1T-NSPa007-0 1 —001 This project request from the City of Kal.'spell is intended to obligate funds from Montana 4 Department of Commerce Neighborhood S-�Abflization Program -in the amount of $169,559 to complete activities at 166 Barron Way, Kalispell, Mt 59901: * Purchase foreclosed single family home e Rehabilitate foreclosed home le Provide financing mechanism to low income (at or below 120 percent area median income) 'individuals or households to purchase foreclosed single family homes* and administraton 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,, This project request confirms that the purchase price of the property will be at least I% less than the current market appraisal price as required by NSP regulations. The appraised price is $167,000 and the anticipated purchase price is $152,000. The site specific checklist has been completed by Environmental Certifying Officer Thomas R. Jentz for the prop" address listed above. Community Action Partnership confirms that this property is vacant and will supply the appropriate documentation to MDOC NSP. Community Action Partnership confirms that this property is foreclosed and will supply the appropriate documentation to MDOC NSP. Anticipated project completion (resale/rent) date: September 15"', 2010 . Notes: Signature A,0% 0 1 f Date To- ZQ l a M —L, . . . . . . . .......... .......................... ......... ... Neighborhood Stabilization Program (NSP) CDBG/NSP ADMINISTRATION MANUAL Montana Department of Commerce September 2009 15-plwCA NSP NSP Exhibit B-1 Implementation Schedule 166 Barron Way, Kalispell Contract Amendment #MT-NSP-007-01-001 A PROJECT IMPLEMENTATION SCHEDULE 166 Barron Wav . _'►:1ry[ j•l►kti. f 'ref. f_ :_+`t : `:.a •. S'•• .{ :. • i• ! s•, •• - 1.• • . , ; �l{•T _ r•, := l•• `i •• .r•• c 1;f• .•} .. kdtibtwy--A,66 t: 681VENT. s•464 r +- s:.•j r •.i} .Z r•... . y tic - Preparation of Project Request Form 1 Contract Amendment 1212009 Uniform Relocation Notice sent 0112010 Environmental Site Specific Checklist 0112010 f Receive environmental release and notice to obligate funds 09 Property Assessment (appraisal, arrchitectural financial cl r ti l 01120 Documentation of eligibility (foreclosure and 0112010 vacancy) All Start Up conditions (civil rights, secure other non-Nfundsg�l2g�� SP " i_ _ '/j -� r x•ir.r 1; -. !Si', r • .' . 4 ;~ .., '. .• ,�_' r _ ,.• ,.,. f ;. �.�11 i•.. EOT PL ilb *r ems• }. • . S . i1 • . _ .. .. • . . isr .. •: a •. Acquisition/ Closing 0212010 Procurement for Rehab to be completed 0212010 Debarment of contractor(s) 0212014 Confirm Davis -Bacon wage rates (when N1A applicable) Begin rehab work 0212010 Labor Standards reporting (when N1� applicable) Rehab work completed 0212010 Confirm income eligible homeowner 1 0612010 Provide financing options Submit drew down requests for eligible Ongoing eens s p e � Submit necessary NSP reports per project ongoing Submit closeout reports 1 final draw 0912010 � Submit program income report(s) 0912019 � JSP Exhibit C-1 Project Budget 166 Barron Way, Kalispell .ontraet Amendment #ITT-NSP-007-01-001 A NSP PROJECT- FINAL 188 Barron Way, Kalispell, Alit 59901 PROJECT ADMINISTRATION AND DEVELOPMENT -----to-ta1 drain allowed (project cost (line 32 x j 810741 1 Accaunting/AudiOng 180 Travel 3751 Training 240 E Admln Fees 279 71279 TOTAL PROJECT ADMIN AND DEVELOPER COSTS 81074 LAN DISLDG ACQUISITION Swpe of Work and Specifications 1,009 Public Notices Purchase Existing Structure 11 0 Inspectionsl oversight 1,990 i Neig h borWorks Financing Fee 3501 Appraisals ego TOTAL LAND & BUILDING ACQUISITION COSTS � 'I ,950 ICONSTRUCTION/REHAB/MARKETING I Mold Rernedisticn Property taxes (5 months) 94p Rehabilitation I Construction Conti9 yn enc 20990 1 Closing Costs 21500 � Holding Casts (water, gas, electric, cleaning, lawn)(1 YR) Insurance 1=0 Markeftg of Program 195 TOTAL CONSTRUCTION I REHAB t MARKETING 1 6:835 I PERMANENT FINANCING COSTS TOTAL FINANCIAIG COSTS