HomeMy WebLinkAboutC5. Professional Services Agreement HRDC1
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission FROM: Wendy Thomas, Director of Community Development SUBJECT: Professional Services Agreement with the Human Resources
Development Council (HRDC) for services related to the Inclusionary
Housing program including homebuyer counseling, loan origination,
and income certification.
MEETING DATE: March 7, 2016 AGENDA ITEM TYPE: Consent
RECOMMENDATION: Authorize the City Manager to execute a Professional
Services Agreement with the Human Recourses Development Council for services related to the inclusionary housing program. BACKGROUND: On December 7, 2015, the City Commission approved the final
adoption of Ordinance 1922 which created an Inclusionary Housing program for the City of
Bozeman. The ordinance specifically calls for the use of incentives for the creation of
affordable housing. The incentives include the use of down payment assistance and impact fee payments. The HRDC is a certified Community Housing Development Organization
(CHDO). A CHDO works with the Montana Department of Commerce to allocate HOME
and CDBG funds for the development of affordable housing, including programs that
provide down payment assistance which are secured by liens. The same process and similar forms will be used to implement the cash incentive programs that the City has
developed. In addition, layering of state and local incentives through one agency will
provide consistent coordinated service to the homebuyers.
Homebuyer education is an important component of the inclusionary housing program.
The newly adopted Affordable Housing Manual requires potential homebuyers meet with a
housing counselor. HRDC has been providing homebuyer counseling in Bozeman for 12
years and has the personnel and process in place to meet the requirement in the manual.
Given the work that HRDC is currently doing for DPA and home buyer education in
addition to their certification as a CHDO having a professional services role to complete the documents and programs needed to implement the inclusionary housing program; therefore staff is processing this as a sole source provision of service.
ALTERNATIVES: As suggested by the City Commission.
FISCAL EFFECTS: The contract amount will be paid with funds from the Affordable
Housing fund. The homebuyer education will be $40,000 per year. Services for down
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payment assistance, loan origination and income certification will vary by year based on the
number of lower-priced homes created. It is estimated that the cost for these services will be
approximately $12,000 over the course of a year. Attachments: Professional Services Agreement with HRDC for Homebuyer Education and Homebuyer services associated with the City of Bozeman Inclusionary Housing Program.
Attachments: Professional Service Contract
Report compiled on: February 18, 2016
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Professional Services Agreement for Affordable Housing Program Services FY 2015 – FY 2016
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PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT is made and entered into this 7th day of March, 2016, 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 Rights 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 as follows:
1. Purpose: City agrees to enter this Agreement with Contractor to perform for City
services described in the Scope of Services attached hereto as Attachment “A” and by this reference
made a part hereof.
2. Term/Effective Date: This Agreement is effective upon the date of its execution
and will terminate on the 7th day of March, 2018.
3. Scope 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,
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and regulations that in any manner may affect cost, progress or performance of the Scope of
Services.
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 manner 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),
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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 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 from 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 fullest 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 indemnity 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 from 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 indemnitee for a claim(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 willful or negligent” as per 28-2-702, MCA.
These obligations shall survive termination of this Agreement and the services performed
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hereunder.
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 damage/bodily 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 form 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:
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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 terms
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 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.
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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 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
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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.
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 hiring 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 from 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 regulations promulgated thereunder. The Contractor shall require these
nondiscrimination terms 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
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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
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 hereto. 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:
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a. Any claim, 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.
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. Survival: 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 part 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 Beneficiary: 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 communications, either verbal or written, made prior
to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of
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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 run
longer than March 7th 2019.
**** END OF AGREEMENT EXCEPT FOR SIGNATURES ****
IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and
year first above written.
CITY OF BOZEMAN, MONTANA ____________________________________
CONTRACTOR (Type Name Above)
By________________________________ By__________________________________
Chris Kukulski, City Manager
Print Name:
Print Title: ____________________________
APPROVED AS TO FORM:
By_______________________________
Greg Sullivan, Bozeman City Attorney
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HRDC PROPOSAL FOR SERVICES
For Affordable Housing Plan Implementation – City of Bozeman
OVERVIEW
HRDC is pleased to submit this proposal for services to support the City 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 to assist 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.
Fee Structure
• <Homebuyer Education and Certification: $20,000 annually, effective July 1, 2016
HRDC’s homebuyer education provides an important first point of entry for many local residents seeking
affordable housing. Our nine hour, comprehensive homeownership education course, directed by a HUD-
approved instructor, helps potential homeowners to better understand the home purchase process. Topics
covered include: the advantages and disadvantages of homeownership; assessing homeownership readiness;
understanding credit; managing 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 you 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 is open to everyone and is free of charge.
HRDC commits to 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 Inclusionary 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.
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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. 1st time homebuyer as defined by HUD;
d. Pre-qualification for 1st 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 $25,000;
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 Restriction/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.
• <Monitoring; Compliance: $100 per loan per year
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.
• <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.
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