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HomeMy WebLinkAbout18- Amendment 1 to PSA - Human Resource Development Council (HRDC) - Affordable Housing Services Contract Extension etyrry co. FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT THIS FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT FOR Affordable Housing Program Services dated the 71h day of March,2016(the"Agreement")is made and entered into this 7th day of March, 2018, by and between the CITY OF BOZEMAN, MONTANA, a self governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, 121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771,hereinafter referred to as "City,"and, The Human Resources Development Council, hereinafter referred to as "Contractor." In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged,the parties hereto agree to amend the Agreement as follows: 1. Extension of Term. Section 30 of the Agreement is extended for an additional one(1)year period. The Agreement shall terminate on March 7th, 2019. 2. Agreement still valid. All remaining terms and provisions of the Agreement remain valid. xxxX END OF AGREEMENT EXCEPT FOR SIGNATURES xxXx First Amendment to Professional Services Agreement for Affordable Housing Program Services FY 2018—FY 2019 Pagel of 2 IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year first above written. CITY OF BOZEMAN, MONTANA [HRDC District IX, Inc.] By` _ B Andrea Surratt, City Manager Print Name- Title: APPROVED AS TO FORM By Greg Sullivan, Bozeman City Attorney First Amendment to Professional Services Agreement for Affordable Housing Program Services FY 2018—FY 2019 Page 2 of 2 • 1 1 , w � L' h• i PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT is made and entered into this 7th day of March,2016,by and between the CITY OF BOZE MAN, MONTANA, a self governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, 121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as "City,"and, The Human�gjg—fr�Develojpniant Council,hereinafter referred to as "Contractor." In consideration of the mutual ovenants and agreements herein contained, the receipt and sufficiency whereof being hereby acl�rrowledged, the parties hereto agree as follows: 1. Purpose: City agrees to enter this Agreement with Contractor to perforin for City services described in the Scope of Services attached hereto as Attachment"A" and by this reference made a part hereof. 2. Terrn/Effeetive Date: This Agreement is effective upon the date of its execution and will terminate on the 7th day of March,2018, 3. Scone of Work: Contractor will perform the work and provide the services in accordance with the requirements of the Scope of Services.For conflicts between this Agreement and the Scope of Services, unless specifically provided otherwise, the Agreement governs. 4. Payment: City agrees to pay Contractor the amount specified in the Scope of Services. Any alteration or deviation from the described services that involves additional costs above the Agreement amount will be performed by Contractor after written request by the City, and will become an additional charge over and above the amount listed in the Scope of Services. The City must agree in writing upon any additional charges. 5. Contractor's Representations: To induce City to enter into this Agreement, Contractor makes the following representations: a. Contractor has familiarized itself with the nature and extent of this Agreement, the Scope of Services, and with all local conditions and federal, state and local laws, ordinances,rules, and regulations that in any manner may affect cost,progress or performance of the Scope of Services. Professional Services Agreement for Affordable Housing Program Services FY 2015—FY 2016 Page I of 10 s b. Contractor represents and warrants to City that it has the experience and ability to perform the services required by this Agreement; that it will perform said services in a professional, competent and timely mamier and with diligence and skill; that it has the power to enter into and perform this Agreement and grant the rights granted in it; and that its performance of this Agreement shall not infringe upon or violate the rights of any third party,whether rights of copyright,trademark, privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal, state and municipal laws. The City will not determine or exercise control as to general procedures or formats necessary to have these services meet this warranty. 6. Independent Contractor Status/Labor Relations: The parties agree that Contractor is an independent contractor for purposes of this Agreement and is not to be considered an employee of the City for any purpose. Contractor is not subject to the terms and provisions of the City's personnel policies handbook and may not be considered a City employee for workers' compensation or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in any dealings between Contractor and any third parties. Contractor shall comply with the applicable requirements of the Workers' Compensation Act, Title 39, Chapter 71, MCA, and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers' compensation coverage for all members and employees of Contractor's business,except for those members who are exempted by law. Contractor shall furnish the City with copies showing one of the following: (1) a binder for workers' compensation coverage by an insurer licensed and authorized to provide workers' compensation insurance in the State of Montana; or (2) proof of exemption from workers' compensation granted by law for independent contractors. Contractor shall indemnify, defend, and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in connection with any labor problems or disputes or any delays or stoppages of work associated with such problems or disputes and for any claims regarding underpaid prevailing wages. 7. Indemnity/Waiver of Claims/Insurance: For other than professional services rendered, to the fullest extent permitted by law, Contractor agrees to release, defend,indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) from and against any and all claims,demands, actions, fees and costs (including attorney's fees and the costs and fees of and expert witness and consultants), losses,expenses, liabilities(including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature connected therewith and without limit and without regard to Professional Services Agreement for Affordable Housing Program Services FY201S—FY2016 Page 2 of 10 the cause or causes thereof or the negligence of any party or parties that may be asserted against, recovered from or suffered by the City occasioned by, growing or arising out of or resulting fiom or in any way related to: (i)the negligent,reckless, or intentional misconduct of the Contractor; (ii)any negligent,reckless,or intentional misconduct of any of the Contractor's agents; or(iii)the negligent, reckless, or intentional misconduct of any other third party. For the professional services rendered, to the fiillest extent permitted by law, Contractor agrees to indemnify and hold the City harmless against claims, demands, suits,damages, losses, and expenses,including reasonable defense attorney fees,to the extent caused by the negligence or willful misconduct of the Contractor or Contractor's agents or employees. Such obligations shall not be construed to negate,abridge,or reduce other rights or obligations of indemmuty that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the indemnitee(s) which would otherwise exist as to such indemnitee(s). Contractor's indemnity under this Section shall be without regard to and without any right to contribution fi•om any insurance maintained by City. Should any indemnitee described herein be required to bring an action against the Contractor to assert its right to defense or indemnification under this Agreement or under the Contractor's applicable insurance policies required below the indemnitee shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to indemnify the indenntee for a clairn(s)or any portion(s)thereof In the event of an action filed against City resulting from the City's performance under this Agreement,the City may elect to represent itself and incur all costs and expenses of suit. Contractor also waives any and all claims and recourse against the City or its officers, agents or employees, including the right of contribution for loss or damage to person or property arising from,growing out of,or in any way connected with or incident to the performance of this Agreement except"responsibility for his own fraud,for willful injury to the person or property of another,or for violation of law, whether willfitl or negligent"as per 28-2-702,MCA. These obligations shall survive termination of this Agreement and the services performed hereunder. Professional Services Agreement for Affordable Housing Program Services FY 2015—FY 2016 Page 3 of 10 In addition to and independent from the above,Contractor shall at Contractor's expense secure insurance coverage through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana which insures the liabilities and obligations specifically assumed by the Contractor in this Section. The insurance coverage shall not contain any exclusion for liabilities specifically assumed by the Contractor in subsection(a) of this Section. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City without limit and without regard to the cause therefore and which is acceptable to the City and Contractor shall furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as follows: • Workers' Compensation—statutory; • Employers' Liability- $1,000,000 per occurrence; $2,000,000 annual aggregate; • Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; • Automobile Liability-$1,000,000 property damagelbodily injury; $2,000,000 annual aggregate; and • Professional Liability-$1,000,000 per claim; $2,000,000 annual aggregate. The above amounts shall be exclusive of defense costs. The City of Bozeman, its officers, agents, and employees, shall be endorsed as an additional or named insured on a primary non- contributory basis on both the Commercial General and Automobile Liability policies. The insurance and required endorsements must be in a foam suitable to City and shall include no less than a sixty (60) day notice of cancellation or non-renewal. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. Contractor shall notify City within two (2) business days of Contractor's receipt of notice that any required insurance coverage will be terminated or Contractor's decision to terminate any required insurance coverage for any reason. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. 8. Termination for Contractor's Fault: a. If Contractor refuses or fails to timely do the work,or any part thereof,or fails to perform any of its obligations under this Agreement, or otherwise breaches any terinns or conditions of this Agreement, the City may, by written notice, terminate this Agreement and the Contractor's right to proceed with all or any part of the work ("Termination Notice Due Professional Services Agreement for Affordable Housing Program Services FY 2015—FY 2016 Page 4 of 10 to Contractor's Fault"). The City may then take over the work and complete it,either with its own resources or by re-letting the contract to any other third party. b. In the event of a termination pursuant to this Section 8, Contractor shall be entitled to payment only for those services Contractor actually rendered. C. Any termination provided for by this Section 8 shall be in addition to any other remedies to which the City may be entitled under the law or at equity. d. In the event of termination under this Section 8, Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising,or claimed to have arisen,as a result of the termination. 9. Termination for City's Convenience: a. Should conditions arise which, in the sole opinion and discretion of the City, make it advisable to the City to cease performance under this Agreement City may terminate this Agreement by written notice to Contractor ("Notice of Termination for City's Convenience"). The termination shall be effective in the manner specified in the Notice of Termination for City's Convenience and shall be without prejudice to any claims that the City may otherwise have against Contractor. b. Upon receipt of the Notice of Termination for City's Convenience, unless otherwise directed in the Notice, the Contractor shall immediately cease performance under this Agreement and make every reasonable effort to refrain from continuing work, incurring additional expenses or costs under this Agreement and shall immediately cancel all existing orders or contracts upon terms satisfactory to the City. Contractor shall do only such work as may be necessary to preserve,protect, and maintain work already completed or immediately in progress. C. In the event of a termination pursuant to this Section 9, Contractor is entitled to payment only for those services Contractor actually rendered on or before the receipt of the Notice of Termination for City's Convenience. d. The compensation described in Section 9(c) is the sole compensation due to Contractor for its performance of this Agreement. Contractor shall, under no circumstances, be entitled to claim or recover consequential, special, punitive,lost business opportunity, lost Professiotral Services Agreeme►rt for Affordable Housing Program Services FY 2015—FY 2016 d Page 5 of 10 productivity, field office overhead, general conditions costs, or lost profits damages of any nature arising, or claimed to have arisen, as a result of the termination. 10. Limitation on Contractor's Damages; Time for Asserting Claim: a. In the event of a claim for damages by Contractor under this Agreement, Contractor's damages shall be limited to contract damages and Contractor hereby expressly waives any right to claim or recover consequential, special, punitive, lost business opportunity, lost productivity, field office overhead, general conditions costs, or lost profits damages of any nature or kind. b. In the event Contractor wants to assert a claim for damages of any kind or nature, Contractor shall provide City with written notice of its claim, the facts and circumstances surrounding and giving rise to the claim, and the total amount of damages sought by the claim, within thirty (30) days of the facts and circumstances giving rise to the claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights to assert such claim. 11. Representatives: a. City's Representative: The City's Representative for the purpose of this Agreement shall be Wendy Thomas (Director of Community Development) or such other individual as City shall designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission shall be directed to James Goehrung as the City's Representative and approvals or authorizations shall be issued only by such Representative; provided, however, that in exigent circumstances when City's Representative is not available, Contractor may direct its communication or submission to other designated City personnel or agents as listed above and may receive approvals or authorization from such persons. b. Contractor's Representative: The Contractor's Representative for the purpose of this Agreement shall be Heather Grenier, Chief Operations Officer, or such other individual as Contractor shall designate in writing. Whenever direction to or communication with Contractor is required by this Agreement, such direction or communication shall be directed to Contractor's Representative; provided, however, that in exigent circumstances when Contractor's Representative is not available, City may direct its direction or communication to other designated Contractor personnel or agents. Professional Services Agreement for Affordable Housing Program Services FY 2015—FY 2016 Page 6 of 10 12. Permits: Contractor shall provide all notices, comply with all applicable laws, ordinances,rules,and regulations,obtain all necessary permits,licenses,including a City of Bozeman business license, and inspections from applicable governmental authorities, and pay all fees and charges in connection therewith. 13 Laws and Regulations: -Contractor shall comply fully with all applicable state and federal laws, regulations, and municipal ordinances including, but not limited to, all workers' compensation laws, all environmental laws including, but not limited to,the generation and disposal of hazardous waste, the Occupational Safety and Health Act (OSHA.), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71,MCA,all applicable City, County, and State building and electrical codes,the Americans with Disabilities Act, and all non-discrimination, affirmative action,and utilization of minority and small business statutes and regulations. 14. Nondiscrimination: The Contractor agrees that all luring by Contractor of persons performing this Agreement shall be on the basis of merit and qualifications. The Contractor will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws,regulations, and contracts. The Contractor will not refuse employment to a person,bar a person fiom employment,or discriminate against a person in compensation or in a term, condition,or privilege of employment because of race,color,religion,creed,political ideas,sex,age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an age, physical or mental disability, marital status or sex distinction. The Contractor shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all 1 regulations promulgated thereunder. The Contractor shall require these nondiscrimination terns of its sub-Contractors providing services under this agreement. 15. Intoxicants;DOT Drug and Alcohol Regulations/Safety and Training: Contractor shall not permit or suffer the introduction or use of any intoxicants,including alcohol or illegal drugs, by any employee or agent engaged in services to the City under this Agreement while on City property or in the performance of any activities under this Agreement. Contractor acknowledges it is aware of and shall comply with its responsibilities and obligations under the U.S.Department of Transportation (DOT)regulations governing anti-drug and alcohol misuse prevention plans and related testing. City shall have the right to request proof of such compliance and Contractor shall be obligated to furnish such proof. The Contractor shall be responsible for instructing and training the Contractor's employees and agents in proper and specified work methods and procedures. The Contractor shall provide continuous inspection and supervision of the work performed. The Contractor is responsible for Professional Services Agreement for Affordable Housing Program Services FY 2015—FY 2016 Page 7 of 10 3 i instructing his employees and agents in safe work practices. 16. Modification and Assignability: This Agreement may not be enlarged, modified or altered except by written agreement signed by both parties hercto. The Contractor may not subcontract or assign Contractor's rights, including the right to compensation or duties arising hereunder,without the prior written consent of City. Any subcontractor or assignee will be bound by all of the terms and conditions of this Agreement. 17. Reports/Accountability/Public Information: Contractor agrees to develop and/or provide documentation as requested by the City demonstrating Contractor's compliance with the requirements of this Agreement. Contractor shall allow the City, its auditors, and other persons authorized by the City to inspect and copy its books and records for the purpose of verifying that the reimbursement of monies distributed to Contractor pursuant to this Agreement was used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Contractor shall not issue any statements, releases or information for public dissemination without prior approval of the City. 18. Non-Waiver:A waiver by either party any default or breach by the other party of any terms or conditions of this Agreement does not limit the other party's right to enforce such term or conditions or to pursue any available legal or equitable rights in the event of any subsequent default or breach. 19. Attorney's Fees and Costs: That in the event it becomes necessary for either Party of this Agreement to retain an attorney to enforce any of the terms or conditions of this Agreement or to give any notice required herein,then the prevailing Party or the Party giving notice shall be entitled to reasonable attorney's fees and costs,including fees,salary,and costs of in-house counsel to include City Attorney. 20. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all appropriate employee withholdings. 21. Dispute Resolution: a. Any claiiu, controversy, or dispute between the parties, their agents, employees, or representatives shall be resolved first by negotiation between senior-level personnel from each party duly authorized to execute settlement agreements. Upon mutual agreement of the parties,the parties may invite an independent,disinterested mediator to assist in the negotiated settlement discussions. Professional Services Agreement for Affordable Housing Program Services FY 2015—FY 2016 Page 8 of 10 b. If the parties are unable to resolve the dispute within thirty(30) days from the date the dispute was first raised, then such dispute may only be resolved in a court of competent jurisdiction in compliance with the Applicable Law provisions of this Agreement. 22. Sui-Aval: Contractor's indemnification shall survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 23. Headings: The headings used in this Agreement are for convenience only and are not be construed as a Dart of the Agreement or as a limitation on the scope of the particular paragraphs to which they refer. 24. Severability: If any portion of this Agreement is held to be void or unenforceable,the balance thereof shall continue in effect. 25. Applicable Law: The parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 26. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the parties. 27. No Third-Party Benefieia : This Agreement is for the exclusive benefit of the parties, does not constitute a third-party beneficiary agreement, and may not be relied upon or enforced by a third party. 28. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 29. Integration: This Agreement and all Exhibits attached hereto constitute the entire agreement of the parties. Covenants or representations not contained therein or made a part thereof by reference, are not binding upon the parties. There are no understandings between the parties other than as set forth in this Agreement. All conurtunications, either verbal or written, made prior to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this Agreement by reference. 30. Extensions: this Agreement may,upon mutual agreement,be extended for a period of one year by written agreement of the Parties. In no case,however,may this Agreement tun longer than March 7'h 2019. Professional Services Agreement for Affordable Housing Program Services FY 2015—FY 2016 Page 9of10 z i i *x** END OF AGREEMENT EXCEPT FOR SIGNATURES *X* IN WITNESS WHEREOF,the parties hereto have executed this instrument the day and year first above written. CITY OF BOZEMAN, MONTANA CONT TOR(T Name Abov By y j Chris Kulculslu,City Manager -- -'" Print Name: Print Title: G'W4 6ki� v vy, APPROVED AS TO FORM: (4 By Gre ullivan,Bozeman City Attorney Professional Services Agreement for Affordable Housing Program Services FY 2015—FY 2016 Page 10 of 10 HRDC PROPOSAL FOR SERVICES For Affordable Mousing Plan Implementation — City of Bozeman OVERVIEW HRDC is pleased to submit this proposal for services to support the,;Cty of.Bozeman in achieving its goals for affordable housing development by providing an expanded version'of'our homeownership center services including pre-approval processes for new developments, loan originations,monitoring,deed�re-conveyances at sale,and compliance components. The purpose of this proposal is toassisl the City in administering Chapter 38,Article 43, Bozeman Municipal Code as created pursuant to Ordinance 1922,and to achieve the goals outlined in Affordable Housing Ordinance Administrative Manual. HRDC is certified by The US Department of Housing and Urban Development to provide housing counselling and education,"!--. Pee Structure <Homebuyer Education and Certification. $20,000 annually,effective July 1,2016 HRDC's homebuyer edudatidirf provides an important first point of;_entry for many local residents seeking affordable housing.Our.nine hour;comprehensivehomeownership education course,directed by a HUD approved instructor,Helps potential homeowners to bette-r.understand the home purchase process.Topics covered include:the advantages and_disadvantages o-homeownership;assessing homeownership readiness; understanding credit;mana&q your finances;the mortgage process;special programs for first time buyers; shopping_for a-home,a lender,--and a realtor.closing your deal;and maintaining your home and your finances after yau_purchase - Completion of homeownership education makes customers a smarter,better borrower,and may help them become;eligible for down payment assistance,low-interest mortgages,and matched savings programs. The course!ls open to everyone and is free-of charge. HRDC commit"providing a minimum of'18 Homebuyer Education classes in the City of Bozeman annually with'an anticipated participation of 300 local residents. <Pre-Purchase Counselling and Screening for Pre-Approval:$20,000 annually,effective July 1, 1016 Pre-purchase counselling is provided by HUD certified counselors on a one on one basis to local residents with the purpose of helping households better understand their specific home buyer readiness and Identify any barriers to successful and sustainable homeownership. HRDC will assist clients with budgeting,credit,home search,financing,low-interest loan and other subsidy programs,home care and maintenance,purchase procedures,closing, RESPA,loan document review services,terms,and other necessary aspects to purchasing a home.As part of the initial counseling session,all clients receive the following materials,"For Your Protection, Get a Home Inspection",and"Ten Important Questions to Ask a Home Inspector',along with disclosure regarding housing quality standards. Anticipated participation in pre-purchase counseling is more than 200 households annually. HRDC will evaluate and determine eligibility for anyone interested in purchasing a home generated through the lnclusionary Housing Policy. Eligible applicants will be placed on a waiting list and notified of new developments as they are approved by the City of Bozeman. 1 r S Also included in pre-purchase counselling session is an assessment for eligibility for Down Payment Assistance and Secondary Lending opportunities which are available locally through the City of Bozeman's affordable housing initiatives and the HOME Program Homebuyer Assistance Programs in partnership with the Montana Department of Commerce. Process for pre-approval for affordable building options: 1. Homebuyer Education 9 hour course,offered twice per month. 2. Pre-purchase counselling with HRDC's HUD certified counselor 3. Determine eligibility pursuant to: a. between 65-80%of Area Median Income(qualified for down payment assistance); b. between 81-100%of Area Median Income(qualified for purchase of moderate priced homes); c. 1 st time homebuyer as defined by HUD; d. Pre-qualification for 15r time mortgage from lending institution pursuant to item(f)of Section 3, Pricing of Affordable Homes; e. Estimate housing ratios to ensure maximum housing expense ratio of 33%; f. Home will be purchaser's primary residence; g.Full purchase price is below$257,000; h. Unit must pass Uniform Physical Conditions Standards(as defined by MDOC); i.Household's liquid assets projected at the time`of closing not to exceed$25000; 4. Meet with participating SWMIBIA builder to discuss potential locations,building options,pricing,etc. 5. Written pre-approval for secondary loan through down payment assistance program`(if applicable)or written approval of income eligibility for moderate priced homes;. 6. Placement on the waiting list for homes constructed via the,Inclusionary Housing Program. Pre-approval will be conducted pursuant to Items(d)and(e)of Section 3,Pricing of Affordable Homes,and Section 6,Applying for,Qualifying, Buying,and Occupying Lower-Priced Homes <Loan Origination/Deed Restrcton/Lien Documents:$1,000 per closing Trained professionals that hold certification in home ownership counselling,financial literacy training and foreclosure prevention act as a support and intermediary with local real estate agents, lenders and title agents to ensure that the home purchase process including down payment assistance,is carried out efficiently and in compliance with program regulations. Loan origination/Deed Restriction/Lien Document components will be conducted pursuant to Section 8, Recordation and Subsidy Recapture for Lower- Priced Homes. This will be verified pursuant to Section 6,Review of Sales Contract. ® <Monitoriing•,Compliance:$100 per loan peryear This ensures that Bozeman residents(who have participated in the affordable housing program)are utilizing the assisted housing unit as their primary residence. Each owner will sign an occupancy agreement upon closing and will be asked to provide documentation of owner occupancy on an annual basis. Staff time of 4 hours per household annually to document compliance. Owner-occupancy will be verified annually pursuant to Section 6, Owner-Occupancy Requirement, Method of Verification. o <Deed Re-conveyance/Subsidy Recapture at resale: $250 per re-conveyance/recapture When a homeowner has met one of the conditions of deed re conveyance(i.e.first mortgage paid in full, sale of the home,re-finance with cash back to borrower, default or no longer utilizing the unit as their primary residence)our staff work closely with customers,lenders, realtors and title agents to ensure that all the terms of the loans are met and a payoff amount is reached and understood by all parties. Necessary documentation is originated by HRDC staff, provided to appropriate parties,and utilized to full close out the loan agreement. Staff time of 20 hours per re-conveyance. Deed Re-conveyance/Buyer subsidy Recapture Lien/Down Payment Assistance Lien Recapture will be conducted pursuant to Section 8, Recordation and Subsidy Recapture for Lower-Priced Homes. 2 BOZE MAN MT ( City Management July 26, 2016 Heather Grenier HRDC 23 South Tracy Bozeman, MT 59715 Dear Ms.Grenier, On behalf of the City of Bozeman,thank you for your organization's service to the community,especially programs that directly benefit our homeless,low and moderate income residents and families. This letter is meant to clarify the contractual relationships that exist between the City and HRDC moving forward. The City of Bozeman and HRDC entered into an agreement,via letter,to have HRDC administer the Housing Rehab Revolving Loan Program in 1993. I've attached a copy of the letter for your reference.The original contract(letter) was extended by a letter signed by the City and HRDC on February 15, 199S.The letter stipulates that the terms of the agreement will continue until either party provides notice that the agreement is to be terminated. In addition,the City Commission approved a professional services contract on March 7, 2016 for HRDC to provide services to the City with regard to the inclusionary housing program the City adopted in February,2016. With this latest agreement, it seems appropriate to clarify the additional services HRDC will provide the City in exchange for continuing our annual contribution of$14,400. The attached"scope of services"documents outline the work HRDC will continue to provide the City and replaces those arrangements between the City and HRDC that predate 2016 as discussed above. Please provide the City a written update on HRDC's progress on the attached scope of services by April 1 of each year to assist both of us in tracking progress and developing upcoming budgets. Consider the March 7th professional services contract and this letter a replacement for all previous agreements. Please don't hesitate to contact me with additional questions at 582-2306.As stated earlier, we greatly appreciate HRDC's dedication and work in our community and we look forward to partnering further with HRDC. Sincerely,C��A,z�� Chris A. Kukulski City Manager Encl:Scope of Services Agreement between City of Bozeman and HRDC © P • :. TDD 406-582-2301 THE MOST LIVABLE PLACE. HRDC SCOPE OF SERVICES 2016 OVERVIEW Provide an annual written update on HRDC's progress in the following scope of services by April 1 of each year. 1. Administer Tenant-Based Section 8 Rental Assistance Program 8 Contract: Montana Department of Commerce:Tenant Based Section 8 Voucher Assistance Units: 410 Service Area: Gallatin,Park,Meagher Counties Who: Households earning less than 50%AMI,and 25%vouchers restricted to households earning less than 30% AMI What: Ensures housing quality standards are met,rent is capped at 30%of household's income,MDOC pays the remainder directly to the landlord,recertification of unit and household eligibility is conducted annually. 2. Administer CoC Grant Funds for Transitional Housing 8 Contract fs): Housing&Urban Development, Continuum of Care,Suppodive Housing Program Units: 6 Family(non-site specific),16 Individual(Amos House-Bozeman) Service Area: Bozeman,Belgrade Who: Families and Individuals experiencing homelessness What: Housing unit with rent capped at 30%of household's income up to 6 months(Amos House)and 18 months (Family Transitional Housing). 3. Leverage resources and administer Emergency Shelter ® Our Warming Center is funded 100%by community donations. Units: 1 Family,24 Men, 16 Women Service Area: Bozeman Who: Families and Individuals experiencing homelessness(246 individuals 2014 winter) What: A safe warm place to sleep from 7pm—7am,7 days per week,November 1 —March 31 7 4. Leverage Resources and Administer Homeless Prevention Activities 8 Contracts:Housing&Urban Development,Emergency Solutions Grant,community donations Units: variable,contingent upon funding(113 families fiscal year 2014-15) Service Area: Gallatin&Park Counties Who: Families and Individuals at risk of becoming homeless(facing eviction for non-payment of rent) What: Housing Assistance including: 1-3 month's rent;negotiation of repayment agreement with current landlord if reconcilable,relocation services if not reconcilable. 5. Leverage Resources and Administer Homeless Placement Activities 8 Contracts:Housing&Urban Development,Emergency Solutions Grant,community donations Units: variable,contingent upon funding(61 families 2014-15 fiscal year) Service Area: Gallatin&Park Counties Who: Families and Individuals experiencing homelessness What: Housing Assistance including: 1-3 month's rent;housing search and placement,security deposit 6. Preserve and Administer Affordable Housing 8 Preserve and Maintain affordable housing units(Resource Property Management) Units: 279(245 restricted for elderly/disabled populations;7 for severe mental illness;and 24 family) 24 units in Bozeman Service Area: Gallatin,Park,Meagher Counties Who: Families and Individuals earning below 60%AMI. What: Affordable housing properties—affordability periods up to 40 years 7. Preserve and Administer Land Trusts 8 Ground Lease Payments—Preserve and Maintain affordable homeownership opportunities Units: 35(24 single family homes in Bozeman, 11 lownhomes in Livingston) Service Area: Gallatin&Park Counties Who: Families and Individuals earning below 80%AMI. What: Affordable homeownership opportunities—affordability period in perpetuity 2 8. Community Development 8 Contracts: Rural LISC, Community Services Block Grant Status: Certified Housing Development Organization,Community Development Corporation,Community Action Agency Services: community planning in relation to affordable housing development,consultant services,affordable housing development and preservation. Units: resulting in 350 units from 1995-2015. Actively conducting feasibility analysis on Qualified Census Tract in Bozeman,Preservation of a mobile home park in Bozeman,redevelopment of Story Mill site in Bozeman,purchase of land for additional NSP phases in Bozeman. Service Area: Gallatin,Park,and Meagher Counties Who: communities across our service area What: Affordable housing development and preservation. 9. Developer Support B Status: HRDC will support two tax credit proposals in 2015. Services: community planning in relation to affordable housing development,consultant services,affordable housing development and preservation. Units: 24 unit proposal,restricted to senior/disabled populations(Rose Park—Bozeman—Summit Housing Group);24 unit proposal,restricted to limited income population(Big Sky Villas—Belgrade—GL Development) Service Area: Gallatin,Park,and Meagher Counties Who: communities across our service area What: Affordable housing development and preservation. 10. Policy Development & Education 8 Contracls: City of Bozeman Status: Certified Housing Development Organization,Community Development Corporation,Community Action Agency Services: community planning in relation to affordable housing development,consultant services,affordable housing development and preservation: Annually update the City of Bozeman's affordable housing goals/outcomes; Engage target populations in proposed activities; Advise CAHAB on housing related issues from the consumer standpoint; Encourage collaboration across financing institutions,real estate,title companies,and building industry; Create projects near employment,transportation,and services. Service Area: Gallatin,Park,and Meagher Counties Who: Sectors across our service area 3 What: Affordable housing development and preservation. 4