HomeMy WebLinkAbout23 - Professional Services Agreements - HRDC - Community Housing Program First Amendment to Professional Services Agreement for Community Housing Program FY 2023 – FY 2024 Page 1 of 2
FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT
THIS FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT FOR
Community Housing Program dated August 23, 2022 (the “Agreement”) is made and entered into
this _____ day of ____________, 2023, 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 Human Resource
Development Council of District IX (HRDC), 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 2 of the Agreement is extended for an additional one (1) year
period. The Agreement shall terminate on June 30, 2024.
2. Updated Scope of Services: The attached scope of service will provide the price for
services breakdown to govern the extended term.
3. Agreement still valid. All remaining terms and provisions of the Agreement remain valid.
**** END OF AGREEMENT EXCEPT FOR SIGNATURES ****
DocuSign Envelope ID: 7045FCA1-D9EB-4BE8-AC96-372AC712F577
27th June
First Amendment to Professional Services Agreement for Community Housing Program FY 2023 – FY 2024 Page 2 of 2
IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and
year first above written.
CITY OF BOZEMAN, MONTANA HRDC
By________________________________ By_____________________________
Jeff Mihelich, City Manager Print Name: Heather Grenier
Title: President / CEO
APPROVED AS TO FORM
By_______________________________
Greg Sullivan, Bozeman City Attorney
DocuSign Envelope ID: 7045FCA1-D9EB-4BE8-AC96-372AC712F577
Professional Services Agreement for Community Housing Program
Scope of Services July 1, 2023, to June 30, 2024
HUD Certified Homebuyer Education Class – $20,000
HRDC will provide a minimum of 18 homebuyers' classes in the City of Bozeman annually.
HRDC's homebuyer’s education course provides an important first point of entry for many
residents seeking affordable ownership and is a requirement of all potential homebuyers in the
City of Bozeman's Affordable Housing Program. HRDC will provide an 8-hour comprehensive
homeownership education course directed by a HUD-approved housing counselor. Topics
covered will include advantages and disadvantages of home ownership, assessing
homeownership readiness, understanding credit, managing finances, the mortgage process,
programs for first-time home buyers, shopping for a home, lender, and a realtor, closing the deal,
home maintenance, and post purchase concerns. HRDC will provide the course free of charge
and allow all interested potential homebuyers to attend. The Homebuyer Education Class
schedule and instructions for attending will be published on HRDC's website, and via HRDC's
social media channels. It will also be sent by email to industry partners. A course flyer and
schedule are also inserted into internal and external newsletters distributed by HRDC.
Pre-Purchase Counseling, Buyer Qualification, Marketing, and Record Keeping – $20,000
Pre-purchase counseling: HRDC's HUD-certified counselors will provide pre-purchase counseling
on an individual basis to all persons interested in becoming buyers qualified to purchase a home
using City and other related programs. HRDC's pre-purchase counseling will help potential buyers
better understand their specific home buyer readiness and identify any barriers to successful and
sustainable home ownership. HRDC will assist potential buyers 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, HRDC will provide all
participants in the counseling session with HUD required materials and disclosures.
Buyer Qualification: During pre-purchase counseling, HRDC will evaluate potential buyers for
eligibility for possible down payment assistance and secondary lending opportunities which may
be available locally through the City of Bozeman's Community Housing Program and the HOME
Program Homebuyer Assistance Program in partnership with the Montana Department of
Commerce.
Qualified Home Buyer Pool: HRDC will maintain a pool of potential qualified home buyers for
income brackets as agreed upon with City staff upon review of potential projects. HRDC will notify
qualified potential buyers of new home ownership opportunities as they are made available and
work with developers of housing to help them understand the needs and resources of households
DocuSign Envelope ID: 7045FCA1-D9EB-4BE8-AC96-372AC712F577
on the list. HRDC will also partner with developers and builders to develop affordable housing
plans for submittal to the City.
Mechanism Monitoring/Management for Long-term Affordability – $11,000
HomeKeeper System Management, Maintenance, and Data Sharing
HRDC will provide and maintain a license for HRDC and the City to use HomeKeeper software (or
such alternate software program City consents to in writing) to track applicant eligibility data,
and demographics. City's license to use the software must allow the City to access information
related to the home buyers, and other records HRDC is required by this Agreement to provide to
the City that are stored in the software program. HRDC represents and warrants it has the right
under its software license for the City's use of the software as described in this Agreement, and
City's use will not infringe on the rights of any third party.
Loan Origination/Deed Restriction/Lien Documents
HRDC will provide trained professionals to work with local real estate agents, lenders, and title
agents to ensure that the home purchase process requirements of below-market homes created
by developers in exchange for incentives offered by the City of Bozeman meet applicable program
requirements, including down payment assistance, is completed efficiently and in compliance
with program regulations. HRDC will provide services related to loan origination, deed restriction,
and lien documentation and recordation in accordance with City guidelines.
Monitoring and Compliance
HRDC will provide monitoring for and verify homeowner compliance with the ownership
requirements for homes produced under the previous AHO and under related affordable housing
plans provided by developers, including use as primary residence and occupancy requirements.
HRDC will request homeowners provide documentation proving compliance on an annual basis.
Deed Re-conveyance/Subsidy Recapture at Resale
Upon a recapture or re-conveyance event as described in the City's recorded lien documents,
HRDC will work closely with homeowners, lenders, realtors, and title agents to ensure that all the
terms of the loans are met and a payoff amount is calculated, collected, and understood by all
parties. Copies of the finalized documentation will be sent digitally to the City’s representative
for review. Funds obtained by HRDC in performing the recapture process will be transferred to
the City within 90 days of receipt by HRDC.
Community Development Director staff time (approximately 200 hours/year) – $9,000
HRDC’s Community Development Director (CDD) works closely with City staff to provide
additional capacity regarding affordable housing best practices and updated program guidance.
The CDD helps staff to respond to inquiries from developers of subsidized and market rate
housing, provides technical assistance to housing developers and non-profits, and assists citizens
seeking affordable housing resources with information and access to services. The CDD also
works to build a more sustainable community by focusing on the relationships between
DocuSign Envelope ID: 7045FCA1-D9EB-4BE8-AC96-372AC712F577
affordable housing, economic and workforce development, and transportation systems within
the city. The CDD connects City staff to agency data relevant to creating and updating the City of
Bozeman Consolidated Plan.
Record Keeping and Reporting:
HRDC will provide the City with the following records and reports within the following
timeframes. HRDC may also make the records available to the City Representative in the
HomeKeeper or other tracking software it provides under this Agreement. Records and reporting
requirements may be adjusted by the City in writing.
1. Recapture documentation, including each recapture due, payment by the
homeowner, and transfer of the payment to the City – Quarterly
2. Reporting and invoices for services rendered - Quarterly
▪ Number of Home Buyer Education classes
▪ Number of participants in Home Buyer Education classes
▪ Number of pre-purchase counsels
▪ All other activities performed under PSA
3. Documents evidencing Owner Occupancy of Affordable Homes will be stored in
Homekeeper - Annually
Scope of Services Summary:
HUD Certified Homebuyer Education Class – $20,000
Pre-Purchase Counseling, Buyer Qualification, Marketing, and Record Keeping – $20,000
Mechanism Monitoring/Management for Long-term Affordability – $11,000
Community Development Director staff time (approximately 200 hours/year) – $9,000
TOTAL: $60,000
DocuSign Envelope ID: 7045FCA1-D9EB-4BE8-AC96-372AC712F577