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2. Sub-Recipient Interlocal Agreement - Neighborhood Stabilization Program_ - 201 1st Avenue East Kalispell, MT 59901 OF MEE 406J58.7740 Foa Bvsu�tFss. IoR'LtF�. ---- - - ----O�Ai1TA Fax: 406.758.7758......... . 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. Page - I 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; Page - 2 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. Page -- 5 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