Okaloosa County BOCC — July 6, 2016 — Amend 11 C1-1798-GM executed by OCDC — reading text

AMENDMENT NO. 11 AGREEMENT (C10-1798-GM) between THE OKALOOSA COUNTY BOARD OF COUNTY COMMISSIONERS and OKALOOSA COMMUNITY DEVELOPMENT CORPORATION for UTILIZATION OF THE NEIGHBORHOOD STABILIZATION PROJECT (NSP1) FUNDS This Eleventh Amendment to C10-1798-GM, is made and entered into this day of 2016, by and between OKALOOSA COUNTY, a political subdivision of the State of Florida having its principal office at 1250 N Eglin Pkwy, Shalimar, FL 32579 (hereinafter referred to as "County") and OKALOOSA COMMUNITY DEVELOPMENT CORPORATION, a non-for profit corporation having its principal office at 204 Cloverdale Blvd, Fort Walton Beach, FL 32547 (hereinafter referred to as "Developer"). WHEREAS, on July 31, 2008, the United States Congress enacted the Housing and Economic Recovery Act of 2008 (HERA), thereby creating the Neighborhood Stabilization Project, NSP1; and WHEREAS, on December 1, 2008, the State of Florida acting through tis Department of Community Affairs (DCA) published its NSP1 Substantial Amendment pursuant to the requirements of HERA; and WHEREAS, on December 12, 2008, the County issued a Request for Proposals (RFP) for qualified housing developers to purchase foreclosed and/or abandoned residential units in Okaloosa County and to oversee any needed rehabilitation, resale, management, and renting of affordable housing units in compliance with all the rules required by NSP1 and administered by the State of Florida’s NSP 1 Substantial Amendment; and WHEREAS, after the procurement process was complete, and through discussions with the Florida Department of Community Affairs, a decision was made to enter into Contract C10- 1798-GM with the Okaloosa Community Development Corporation to serve as the Developer; and Page 1 of 15 WHEREAS, in accordance with the grant funding provided under the NSP1 program, and scope of work under C10-1798, Developer has been managing as well as building and developing new residential units at a partially completed townhome development known as Palm Village; and WHEREAS, on May 31, 2016, the Florida Department of Economic Opportunity which took over the NSP1 project for DCA, ceased funding the Okaloosa County NSP1 program; and WHEREAS, the construction of Palm Village has not been completed yet, but as part of the requirements of the NSP1 grant agreement, Okaloosa County is required to finish the building of those units and continue to monitor the units which were developed in accordance with the grant funds until the last unit reaches the end of its affordability period; and WHEREAS, the County and the Developer, now find it in the best interest to amend the terms of C10-1798-GM to reflect the changes in circumstances as of May 31, 2016. NOW, THEREFORE, in consideration of the mutual benefits contained herein, the County and Developer agree as follows: 1. Section 1 of C10-1798-GM, titled “Agreement Documents”, is hereby amended to include and incorporate the following additional attachment: Attachment XIV Period of Affordability Said attachment, is attached hereto and incorporated by reference. 2. Section 2 of C10-1798-GM, titled “Project/Statement of Work™, is hereby revised and amended as follows: Section 2. Project/Statement of Work: The Developer agrees to implement the Project as follows, up to May 31. 2016: Task 1 — Home Ownership Activities: to include the acquisition, rehabilitation, and resale of single family homes and multi-family homes and/or units to qualified low and low to moderate income households. Page 2 of 15 Task 2 Rental Housing Activity: to include the acquisition, rehabilitation, and rental of single family homes and multi-family homes to qualified low and low to moderate income households. Prior to funds being released for rental housing, a site specified operating proforma must be approved by Okaloosa County. An Unspecified Site Environmental Review Record has been completed by Okaloosa County and approved by DCA. Site specific environmental reviews will be required on all proposed properties. Site Specific Environmental Reviews will be conducted by the County. The Developer agrees to implement the Project as follows, after May 31, 2016: Task 1 — Complete construction of Land bank located at Palm Village, Fort Walton Beach, FL 32547. This consists of 24 units that must be completed no later than 10 years from the date of close out of NSP grant. The 24 units does not include the original 6 units on property when land was acquired. Task 2 - Perform as property managers for all properties purchased and rehabilitated or newly constructed with NSP funds. See Attachment | for list of properties. Duties include but are not limited to: Maintain properties by investigating and resolving tenant complaints, inspecting units _and completing repairs as needed, contracting with landscaping services to maintain land: advertise _and fill vacancies; rent to qualified individuals and families; enforce leases; collection of security deposits and rents: enforcing rules of occupancy; evictions; maintaining records which include but are not limited to income, expenses, renter qualifications, leases, inspections, maintenance, repairs, insurance, taxes and budgets; and submit required reports to county Page 3 of 15 Task 3 — Only after Task 1 and 2 are completed and with prior approval from the County, the Developer may engage in other NSP approved activities to include the acquisition, rehabilitation, and resale or rental of single family homes and multifamily homes and/or units to qualified low and low to moderate income households. 3. Section 3 of C10-1798-GM, titled “Agreement Amount”, is amended to read as follows: 4. Section Section 3. Agreement Amount: Subject to the availability of funds, the County agrees to make available, according to the terms and conditions contained within this Agreement, the amount not to exceed THREE MILLION, EIGHT HUNDRED AND NINETEEN THOUSAND, NINE HUNDERED AND SIXTY SEVEN DOLLARS AND EIGHTY FIVE CENTS. ($3.815.967.85) (herein referred to as "the Funds")._These Funds are available until the State contract expires, on May 31, 2016. Developer acknowledges that after, May 31, 2016, the NSP1 State Funds will no longer by available. All funding for this Contract after May 31, 2016 shall be from the Program Income. 11 of C10-1798-GM, titled “Term™, is amended to read as follows: Section 11. Term: The term of this contract shall extend until the last unit provided for on Attachment XIV of this Contract, titled “Period of Affordability”, has reach the end of its affordability period in accordance with the dates set forth in Attachment XIV. Page 4 of 15 5. Section 18 of C10-1789-GM, titled “Sponsorship”, is amended to read as follows: Section 18. Sponsorships: The Developer agrees that all notices, informational ~ pamphlets, press releases, advertisements, descriptions of the sponsorship of the Project, research reports, and similar public notices prepared and released by the Developer for, on behalf of, and/or about the Project, shall include the statement: "FUNDED BY OKALOOSA COUNTY., STATE OF FLORIDA DEPARTMENT OF ECONOMIC OPPORTUNITY, AND U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT NEIGHBORHOOD STABILIZATION PROJECT". 6. Section 25 of C10-1789-GM, titled “Notice”, is amended to read as follows: Section 25. Notices: All notices required under this Agreement shall be sent to the parties at the following address: County: Abra McGill, Grants Specialist, Okaloosa County Growth Management, 1250 N. Eglin Pkwy, Shalimar, FL. 32579 Developer: Executive Director, Okaloosa County Community Development Corporation, 204 Cloverdale Blvd, Fort Walton Beach, FL 32547 7. Section 28 of C10-1789-GM, titled “Reserves”, is amended to read as follows: Section 28. Reserves: The Developer shall maintain $5,000 in a Capital reserve account for each unit purchased with NSP funds. The Developer shall maintain an Operating reserve account not to exceed $323.285.50. There shall be no Program Income until such time as the reserve amounts for each unit is met. After the reserves are met all money received as Program Income shall be returned to the County on a monthly basis. The County shall review all monies placed into the Replacement Reserve Account for all Page 5 of 15 properties purchased and or rehabilitated with NSP1 funds on an annual basis. If it is determined by the County that said amounts exceed the replacement cost of the required elements, any and all excess funding shall be returned to the County as program income. The Developer shall obtain approval from Okaloosa County prior to any expenditure or transfer of reserve funds. 8. The following additional provisions are added to C10-1789-GM: Section 31. Rental Properties: Rental property shall be rented to qualified individuals/families. A minimum of 25 percent of total NSP properties must be rented to individuals and families whose incomes do not exceed 50 percent of the current year income limits. No more than 75 percent of the properties can be rented to individuals/families whose incomes do not exceed 120 percent of income limits. Income status will be determined at the time of occupancy and annually thereafter, in accordance with 24 CFR 570.3 using the definition of “annual income™ as defined by Section 8 Housing Assistance Payments Program to ensure compliance with income requirements of NSP. Affordable rents are set by the developer but must be approved by the County. Rents must be Affordable rents per Florida Statute 420.0004(3). “Affordable” means that monthly rents including taxes, insurance, and utilities do not exceed 30 percent of that amount which represents the percentage of the median adjusted gross annual income for the households, or the fair market rent, whichever is less. Rents must remain affordable during the period of affordability on each property. After period of Affordability the County will release property to Developer per NSP rules and regulations. See Attachment [ for period of affordability for each property. Page 6 of 15 Rental properties must be permanent, non-transitional rental housing and not temporary, transitional housing. Management fees will not exceed 10 percent. Section 32. Procurement: The Developer shall follow County procurement rules for all contracts and purchases. Purchase of equipment shall be inventoried and made available to the County on request. Equipment will be considered property of the County until the period of affordability has passed, at that point assets may revert to the Developer. Section 33. Public Records: IF THE DEVELOPER HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO THE DEVELOPER’S DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS CONTRACT, CONTACT THE CUSTODIAN OF PUBLIC RECORDS AT OKALOOSA COUNTY RISK MANAGEMENT DEPARTMENT 5479 OLD BETHEL ROAD CRESTVIEW, FL 32536 PHONE: (850) 689-5977 riskinfo@co.okaloosa.fl.us. Developer must comply with the public records laws, Florida Statute chapter 119, specifically Developer must: Keep and maintain public records required by the County to perform the service. . Upon request from the County’s custodian of public records, provide the County with a copy of the requested records or allow the records to be inspected or copied within a reasonable time at a cost that does not exceed the cost provided in chapter 119 Florida Statutes or as otherwise provided by law. Page 7 of 15 Ensure that public records that are exempt or confidential and exempt from public records disclosure requirements are not disclosed except as authorized by law for the duration of the contract term and following completion of the contract if the Developer does not transfer the records to the County. Upon completion of the contract, transfer, at no cost, to the County all public records in possession of the Developer or keep and maintain public records