2. Sub-Recipient Interlocal Agreement - Neighborhood Stabilization Program_ - 201 1st Avenue East
Kalispell, MT 59901
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City of Kalispell • www.kalispell.com
Office of Community & Economic Development
MEMORANDUM
To: The Honorable Mayor Fisher and Kalispell City Council Members
Cc: Jane Howington, City Manager
From: Katharine Thompson, Community Development Manager
Re: Sub -Recipient Interlocal Agreement for Neighborhood
Stabilization Program (NSP)
Meeting Date: January 19, 2010
Attached to this memo please find a copy of the Interlocal Agreement between the City
of Kalispell and Northwest Montana Human Resources, Inc, dlbla Community Action
Partnership of Northwest Montana.
The purpose of Kalispell's NSP grant is to:
Purchase foreclosed upon homes within the City of Kalispell to be placed in a
newly formed community land trust and sold to income qualified households. Of
these qualifying households, 25 % must demonstrate household income less than
50% of the area median income and 75% will have household income between
80% and 120% of area median incorri-e (addressing what is commonly referred to
as workforce housing).
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 million
in program funds
The Montana Department of Commerce, Community Development Division requires that
the sub -recipient interlocal agreement be approved of and signed by all parties prior to
the release of funds.
BACKGROUND: The City of Kalispell has identified "affordable housing to meet
the needs of low and moderate -income residents" as a policy within its Kalispell Growth
Policy 2020.
The gap between area median incomes and azea median home prices in the Flathead has
been well documented by the Montana Depa,-tment of Commerce, Mousing Division in
their 2008 white Paper. This demonstrated affordability gap creates an environment
where many working families find homeownership beyond their reach, due in large part
to land costs.
In July of 2008 Congress passed the Housing and Economic Recovery Act creating the
Neighborhood Stabilization Plan in response to the growing national foreclosure crisis.
The result was that Montana would receive $19.6 million to address foreclosed and
abandoned properties and serve households ranging from 50% (or less) to 120% (or less)
area median income with an abbreviated application and implementation schedule.
The CED Department began meeting informally with community individuals and
organizations to gather information on workforce housing models that would fit with the
needs of this community and the known potential funding sources. The community land
trust model was researched and found to offer the best mechanism for providing housing
affordability in perpetuity and thus allowing the best stewardship of public and private
dollars. On December 4, 2008, the City held a joint public hearing with Community
Action Partnership of Northwest Montana (formerly Northwest Montana Human
Resources) to solicit public input on the Neighborhood Stabilization Plan in preparation
for an application.
FISCAL IMPACT.- The City will handle 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 Sub --Recipient Interlocal
Agreement delineating the roles and responsibilities between the City of Kalispell and
Community Action Partnership under the Neighborhood Stabilization Program grant.
Respectfully submitted,
kathan*ne Thompson
ane Howington
Community Development Manager City Manager
Community & Economic Development Dept.
SUB-RIECIPIENT INTEREOCAL AGREEMENT
Between. the City of Kalispell
and Northwest Montana Human Resources, Inc. dl bl a
Community Action Partnership of Northwest Montana
THIS A GREEMENT is entered into on the zday of , , by and between the City of
Kalispell (hereinafter referred to as "the City") and Northwest Montana Human Resources, Inc. d/b/a
Community Action Partnership of Northwest Montana, a private, non-profit corporation incorporated
under the laws of Montana (hereinafter referred to as "the Agency").
wITNES SETH
WHEREAS, the City has applied for and been approved to carryout NSP grant activities under
Montana's Neighborhood Stabilization Program (NSP) Program; and
WHEREAS, the City desires to contract with the Agency to carry out the City's approved NSP
activities (hereinafter referred to as the "City's NSP Program") to:
• Purchase foreclosed single family homes
• Rehabilitate foreclosed single family homes
® Provide financing mechanisms to low income (at or below 120 percent of area median income)
individuals or households to purchase foreclosed single family homes
® Engage in other NSP-eligible activities with NSP program income only if there are insufficient
foreclosed single family homes; and
• Administer Contract #MT-NSP-007-01-001 between the Montana Department of Commerce
(MDOC) and the City, attached hereto and specifically incorporated herein by this reference
(hereinafter referred to as the "Grant Contract"), in compliance with the Project Management
Plan approved by the Department, attached hereto 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
WHEREAS, the Agency agrees to operate, manage, and maintain the City's NSP Program in a manner
so as to be available to all residents within the City limits without regard to race, color, religion, creed,
political ideas, gender, age, marital status, physical or mental disability, or national origin and with
granting agencies required guidelines; and
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.
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SUS -RECIPIENT INTERLOCAL AGREEMENT
City of Kalispell Northwest Montana Human Resources Inc. dlbla
Community Action Partnership of Northwest Montana
NOW, THEREFOR, THE CITY AND THE AGENCY MUTUALLY AGREE AS FOLLOWS:
I. Ices onsibilities Delegated to the A envy
A. The Agency agrees to carry out the City's NSP Program in accordance with the terms and
conditions of the Grant Contract; the MDOC Community Development Bloch Grant
(CDBG)/Neighborhood Stabilization Program. (NSP) Grant Administration Manual; the
State of Montana NSP Substantial Amendment, Plan Year 2008 Annual Action Plan,
approved by HUD January 30, 2009; the Dousing and Economic Recovery Act (HERA)
of 2008; all applicable sections of 24 CFR Parts 85 and 570; and any other requirements
for NSP as set forth by HUD, including but not limited to COMB Circular A- 110, OMB
Circular A-122, and the Federal Register Notice dated October 5, 2008, Vol. 73, No. 194,
and any revisions thereto.
B. The Agency agrees to carry out the duties and responsibilities assigned to it in the Project
Management Plan.
C. Following the final closeout of the City's NSP Program, the Agency will submit annual
reports to the City, on a date to be specified by the City, unless later excused by new
regulation or agreement. These annual reports shall include:
(1) a copy of the Agency's annual IRS 990 tax form; and
(2) a copy of the Agency's annual Treasurer's report; and
(3) proof of adequate insurance on each facility acquired in whole or in part with the
City's NSP Program funds.
D. 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.
II. Duration of the Ajareement
A. This Agreement tales effect when the following conditions are satisfied-.
1. The MDOC and the City have executed the Grant Contract;
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SUB -RECIPIENT INTERLOCAL AGREEMENT
City of Kalispell Northwest Montana Human Resources, Inc. d/b/a
Community Action Partnership of Northwest Montana
2. The MDOC has approved the City's "Request for Release of Funds and
Certification;"
3. The attorney for the City and the attorney for the Agency have approved this
Agreement as to form and contents and
4. 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.
B. This Agreement will be in effect until five years after the Period of Affordability, which
Period may be up to twenty (20) years from the date the City's NSP Program is
completed, depending on the amount of assistance provided, as referenced in State of
Montana NSP Substantial Amendment Plan Year 2008 Annual Action Plan, Section C —
Definitions and Descriptions (p. 24).
III. 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.
IV. Use and Dis osition of Real PrORerty and Program income
A. The Agency will manage the Project during the term of this Agreement in accordance
with the terms set forth herein.
B. 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 in excess of
$2500, the Agency will either:
1. 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
Page-3
SUB -RECIPIENT INTERLOCAL AGREEMENT
City of Kalispell Northwest Montana Human Resources, Inc. dlbla
Community Action Partnership of Northwest Montana
to, the real property, subject to all Program Income requirements. Reimbursement
is not required after the Period of Affordability.
C. Upon the expiration of this Agreement, the Agency will transfer to the City any of the
City's NSP Program funds on hand at the time of expiration of this Agreement and any
accounts receivable attributable to the use of such funds.
D. As security for the performance 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 the City's NSP Program
funds.
E. 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.
V. Indemnification
The Agency shall indemnify and hold harmless the City, the City Community Development Department,
and their 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 maybe Liable, regardless whether or not it is caused
in part or by a party indemnified hereunder.
VI. Debarment
The Agency certifies and agrees to ensure during the terms 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
Page - 4
SUB -RECIPIENT INTERLQCAL AGREEMENT
City of Kalispell Northwest Montana Human Resources, Inc. dlbla
Community Action Partnership of Northwest Montana
in this Agreement by any governmental department or agency or in any Federal assistance programs
under Executive Order 12549, `Debarment and Suspension."
vII. Access to and Retention of Records
A. In accordance with the requirements of 24 CFR § 570.502 and 24 CFR § 84.53, 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 four (4) 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.
B. In accordance with the requirements of 24 CFR § 570.502 and 24 CFR § 84.53, 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 male audits, examinations, excerpts,
and transcripts.
VIII. Progress_ Red arts
The Agency shall submit regular progress reports to the City in the form, content, and frequency as
required by the City and the MDOC.
IX. Assi nment Transfer, and Subcontractin
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.
X. Payment Procedures
The City will pay to the Agency funds made available under the City's NSP Program at request of the
.Agency and consistent with any approved budget and MDOC policy concerning payments. Payments
will be made for eligible expenses actually incurred by the Agency, and not to exceed actual cash
requirements. In addition, the City reserves the right to liquidate funds available under this Agreement
for costs incurred by the City on behalf of the Agency.
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SUB -RECIPIENT INTERL]CAL AGREEMENT
City of Kalispell Northwest Montana Human Resources, Inc. dlbla
Community Action Partnership of Northwest Montana
XI. Suspension or Termination
In accordance with 24 CFR 84.61, the City may suspend or terminate this Agreement if the Agency
materially fails to comply with the terms and conditions of this Agreement, or if the Grant Contract is
terminated by the MDOC in accordance with its terms.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day of
.2010.
CITY OF KALISPELL
i
Jane Howington, City Manager
ATTEST:
Theresa white, City Clerk
APPROVED AST RM:
Charles A. Harball, City Attorney
STATE OF MONTANA
County of Flathead
On this day of , 2010, before me , a Notary
Public for the State of Montana, personally appeared JANE HOWINGTON, City Manager of the City of
Kalispell , and acknowledged to me that she executed the written instrument on behalf of said entity.
(NOTARY SEAL)
PRINTED NAME:
Notary Public for the State of Montana
Residing at:
My Commission expires
Page -- 6
SUB --RECIPIENT INTERLGCAL AGREEMENT
City of Kalispell Northwest Montana Human Resources, Inc. dlbla
Community Action Partnership of Northwest Montana
NORTHWEST MONTANA HUMAN RESOURCES, INC.
D/B/A COMMUNITY ANION PARTNERSHIP OF NORTHWEST MONTANA
BY: get
Douglas . Rauthe, Executive Director
APPROVED AS TO FORM:
Thomas T. TornowP
BY:
Thoma �omow, Attorney for Agency
STATE OF MONTA.NA.
County of Flathead
DATE:
On this dayof , 2Q 10, before me :k-f , a a Notary
Public for the State of Montana, p onally appeared DOUGLA.S D. RAUT-14E of Northwest Montana
Human Resources, Inc. dlbla Community Action Partnership of Northwest Montana, and acknowledged
to me that he executed the written instrument on behalf of said entity.
(NOTARY SEAL)
L- 51& TERRY L. PUCR
, NO T ARY PUBLIC for the
NOTARIAL State Of Montana
SEAL Residing at Kalispell, Montana
my Commission Expires
" O .dune 1, 2013
Page - 7
PRINTS NAME: L - Udvl
Notary Public for the State A Montana
Residing at. lwr
My Commission expiresldr)!'-,3
SUB -RECIPIENT INTERLOCAL AGREEMENT
City of Kalispell Northwest Montana Human Resources, Inc. dlbla
Community Action Partnership of Northwest Montana