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HomeMy WebLinkAbout[04e] Grant Acceptance & Transfer Council Agenda Item 4e MEETING DATE: July 16, 2018 AGENDA ITEM: Grant Acceptance and Transfer – Requested Action: Authorize the Mayor and Administrator to execute all documents required to accept and participate in the DEED CDAP Grant and authorize the transfer of $ 7,563.44 from fund 101to Fund 225. SUBMITTED BY: Administration/Finance BOARD/COMMISSION/COMMITTEE RECOMMENDATION: PREVIOUS COUNCIL ACTION: In January 2018 the City Council authorized the submittal of a grant application to MN Department of Employment and Economic Development for a Small Cities Development Grant in the amount of $ 178,624. The City agreed to commit $ 25,000, of which $ 7,563.44 is from building permit revenue and $ 17,436.56 is from returned housing funds. BACKGROUND INFORMATION: The City was notified on July 3, 2018 that we had received funding from DEED in the amount of $ 178,624. The grant applies to a target area that includes the Cloverdale development. Accompanying this information is a map of the target area. As part of the application process the City had to identify a need for the grant. The City partnered with Central MN Housing Partnership (CMHP) to submit and administer the grant upon award. As part of the grant process they surveyed residents in the target area and identified interest property owners. The amount of the grant requested was based upon those expressing interest. CMHP staff will be contacting those residents that expressed interest first and we have also forwarded a press release to WJON and the Newsleader as required to solicit additional interest. The goal is to use all the funds. The last grant we had we did not use all the funds and some had to be returned. The administration cost is outside the grant award and it is estimated the cost to be $ 22,624. The City agreed to contribute $ 25,000 part to be funded through reimbursed funding. Residents that participate in the program agree to a lien on the property for a period of seven years. If they sell their property before the seven years that have to pay back portion that is not forgiven. For th example, if a resident sells after two years, 5/7 of the loan must be re-paid. The funds that are repaid must go in a separate fund and can only be used for programming for low to moderate income property. The City currently has $ 17,436.56 in returned funds from two residential projects. These funds will offset the City contribution of $ 25,000 requiring a transfer from the General Fund to the Grant Fund. The transfer will equal $ 7,563.44. All grants required a significant amount of paperwork and documents, all of which will be managed by Central MN Housing Partnership. Documents requiring execution include; Contract Services for Administrative Services with Central MN Housing Partnership; Residential Antidisplacement & Relocation Assistance Plan; Small Cities Development Program Income Reuse Plan; Grant Agreement (not yet received). The documents needing execution are the same documents that were required for the last grant received. BUDGET/FISCAL IMPACT: $ 25,000 Local Funds; $ 178,624 State Funds ATTACHMENTS: 1. Contract Services for Administrative Services with Central MN Housing Partnership 2. Residential Antidisplacement & Relocation Assistance Plan 3. Small Cities Development Program Income Reuse Plan 4. Small Cities Development Program Fair Housing Plan 5. Target Area REQUESTED COUNCIL ACTION: Authorize the Mayor and Administrator to execute the Grant documents accepting funding for a Small Cities Housing Rehab Grant in the amount of $ 178,624 and authorize the transfer from the General Fund (101) to DEED CDAP Grant Fund (225) in the amount of $ 7,563.44. l 37 28th Avenue North Suite 102 �� Cel�tral I�11I�I�2S�ta St. Cloud, MN 56303-4242 •• HOUSING PARTNERSHIP Phone:320.259.0393 „�'j Fax:320.259.9590 www.cmhp.net MEMO To: Therese Haffner From: Ed Zimny,Program Manager Date: July 6,2018 RE: Contract for Administrative Services Enclosed you will fmd two copies of the Contract for Administrative Services.Please have both copies signed,keep one for the City's recards and return the other one to me in the envelope provided. Thank you. Ed Zimny,Program Manager Enclosure ������.���' JUL U 9 2018 Cil�C�F ��. JOSEPH A MINNESOTA /j._Q MN TDD 71 1 NONPR�FIT CORPORATION v1.;.�,,;;... E4UAL OPPORTUNIlY EMPLOYER . . THE CITY OF ST. JOSEPH CONTRACT FOR ADMINISTRATIVE SERVICES WITH CENTRAL MINNESOTA HOUSING PARTNESHIP, INC. THIS CONTRACT for Administrative Services is entered into on Jul,y 9, 2018 by and between the City of St.Joseph (Grantee), a municipal corporation under the laws of the State of Minnesota, hereinafter referred to as the "City", and Central Minnesota Housing Partnership, Inc. (Administrator), a non-profit corporation under the laws of the State of Minnesota, hereinafter referred to as the "CMHP". WHEREAS,THE City has been awarded a grant under the Minnesota Department of Employment and Economic Development Small Cities Development Program(SCDP) for an owner-occupied and commercial property rehabilitation program; WHEREAS, THE City has contracted with the CMHP for Administrative Services. WITNESSED: In consideration of the mutual covenants and agreements containing herein, the City and the CMHP agree as follows: I. This contract commences on Julv.9, 2018 and terminates upon final expiration of the SCDP grant agreement. II. In consideration of financial reimbursement to be more specifically described below. The City will contract with the CMHP for the Administrative Services for the owner- occupied, commercial and rental rehabilitation activities. III. The work program contracted with the CMHP includes: rehabilitation of 8 owner- occupied homes. This work program is acceptable to the City and the CMHP and is hereby made part of this contract(Attachment A). IV. The CMHP Responsibilities: A. Provide salary and fringe for CMHP staff to carry out the general administration and program implementation as noted in Attachment A B. Provide adequate office space,telephone, copying, postage and other office related items. C. Provide clerical support for above-mentioned project D. Maintain accurate tracking of administrative draws to guard against overages 1 V. The City Responsibilities: A. Provide information and data as necessary and assist the CMHP in arranging meetings with elected officials or individuals, and for the completion of DEED required annual reports. B. Act as the Fiscal Agent for the SCDP grant award, to include; i. Make payments to contractors/vendors for services provided. CMHP will submit payment requests and invoices to the City based on the DEED payment request calendar(every two weeks or as applicable). ii. Make payments to the CMHP for administrative services provided,not to exceed $22,624.00; the amount of the SCDP grant designated for administrative fees. CMHP will submit invoices to the City(Fiscal Agent) as projects are completed and following the DEED reimbursement calendar(every two weeks or as applicable). iii. Create and maintain a revolving loan fund account for deposit of any funds received through the sale of a rehabbed property before the maturity date of the repayment agreement. C. The City agrees to indemnify and hold harmless the CMHP against any legal actions brought by any personal entity whatsoever arising out of or claimed to be arising out of the performance of either party under this agreement for services, except for any intentional acts or gross negligence on the part of CMHP. VI. Termination Due to Loss of Funds Payment for this contract is to be made from funds made available by the City and/or the Minnesota Department of Employment and Economic Development(DEED). If at any time such funds are no longer available, this contract shall be terminated immediately upon notice of such fact by the City. In the event of such termination, CMHP shall be entitled to payment, determined on a pro-rata basis, for services performed. VII. Cancellation This contract may be canceled by the City or the CMHP at any time, with or without cause, upon thirty(30) days written notice to other party. In the event of such a cancellation, the CMHP shall be entitled to payment, determined on a pro-rata basis, for work or services performed. VIII. Assignment The CMHP shall neither assign nor transfer any rights or obligations under this contract without prior written consent of the City. 2 . . IX. Amendments Any amendment to this contract shall be in writing, and shall be executed by the same parties who executed the original contract or their successors in office. X. Audits The books, records, documents and accounting procedures and practices of the CMHP, relevant to this contract, shall be subject to examination by the contracting department and its auditors. Upon request,the City may receive a copy of the CMHP audit. XI. Equal Opportunity in Employment In connection with the carrying out of the Contract, all parties shall comply with Section VI of the Civil Rights Act of 1964 (78 Statute 214), Section 109 of the Housing and Community Development Act of 1974, and Amendments and Regulations issued thereto. Specifically, the CMHP agrees to the following: A. The CMHP will not discriminate against any employee or applicant for employment because of race, creed, color or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training; including apprenticeship. B. The CMHP will, in all solicitations or advertisements for employees placed by or on behalf of the CMHP, state that all qualified applicants will receive consideration for employment without regard to race, creed, color or national origin. C. The CMHP will cause reference to, or the foregoing provisions to be inserted in all subcontracts for work covered by this contract so that such provisions will be binding upon each subcontractor, provided that the foregoing provisions shall not apply to contracts or subcontracts for standard commercial supplies or raw materials. THE CITY OF ST. JOSEPH CENTRAL MINNESOTA HOUSING PARTNERSHIP, INC. � . � Authorized Official Ex cutive Director � � ���� Date Date � 3 a . r (Attachment A) CITY OF ST. JOSEPH - CMHP,INC. SCDP WORK PROGRAM The following Work Program Guidelines will be used to administer this SCDP grant award. 1. The CMHP shall make available an employee(s) of competent training and experience to accomplish the assigned tasks and projects as directed by the City. 2. The employee shall spend sufficient time to administer the activities funded through the DEED Big Lake SCDP grant award. Those activities are: a. Owner-occupied rehabilitation 3. The employee shall be supervised in his/her duties by the CMHP Community Development Director and CMHP Executive Director. 4. The employee shall act as a liaison to other organizations or agencies involved in the City activities. 5. The employee shall perform the following duties: a. Establish and maintain files and records b. Be responsible for marketing, application processing, scope of work creation, origination of project contract and loan documents, full construction management, public meetings and reporting. 6. CMHP shall provide advice and assistance in coordinating and carrying out activities involving other public and private entities that are pertinent to achieving expressed - development objectives as cited in Section III of this Agreement. 7. CMHP shall provide advice and assistance in preparing needed graphic and narrative materials pertaining to program objectives. 8. CMHP shall be responsible only to the City for the activities of the Work Program and will have sole authority to carry out the activities in a manner prescribed by the Work Program under this agreement for services. 4 RESIDENTIAL ANTIDISPLACEMENT & RELOCATION ASSISTANCE PLAN CITY OF ST. JOSEPH SMALL CITIES DEVELOPMENT PROGRAM This Residential Anti-displacement and Relocation Assistance Plan(RARAP) is prepared by the City of St. Joseph(hereinafter referred to as "the City") in accordance with the Housing and Community Development Act of 1974, as amended; and HUD regulations at 24 CFR 42.325 and is applicable to CDBG/Small Cities Development Program assisted projects. Minimize Displacement Consistent with the goals and objectives of activities assisted under the Act, the City will"take the following steps to minimize the direct and indirect displacement of persons from their homes: ➢ Coordinate code enforcement with rehabilitation and housing assistance programs ➢ Evaluate housing codes and rehabilitation standards in program target area to prevent undue financial burden on established ➢ Adopt policies to identify and mitigate displacement resulting from intensive public investment in target areas ➢ Where feasible, give priority to rehabilitation of housing, as opposed to demolition, to avoid displacement ➢ If feasible, demolish or convert only dwelling units that are not occupied or vacant occupiable dwelling units, especially those units which are"lower-income dwelling units" Relocation Assistance to Disnlaced Persons The City will provide relocation assistance for lower-income tenants who, in connection with an activity assisted under the CDBG Program, move permanently or move personal property from real property as a direct result of the demolition of any dwelling unit or the conversion of a lower-income dwelling unit in accordance with the requirements of 24 CFR 42.350. A displaced person who is not a lower-income tenant will be provided relocation assistance in accordance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as , amended, and implementing regulations at 49 CFR Part 24. One-for-One Replacement of Lower-Income Dweiling Units The City will replace all occupied and vacant occupiable Iower-income dwelling units demolished or converted to a use other than lower-income housing in connection with a project assisted with funds provided under the CDBG Program in accordance with 24 CFR 42.375. Before entering into a contract committing the City to provide funds for a project that will directly result in demolition or conversion of a lower-income dwelling units, the City will make public by publication in the local newspaper and submit to HUD Minnesota the following information in writing: 1. A description of the proposed assisted project; 2. The address, number of bedrooms and location on a map of lower-income dwelling units that will be demolished or converted to a use other than as lower-income dwelling units as a result of an assisted project; 3. A time schedule for the commencement and completion of the demolition or conversion; 4. To the extent known,the address, number of lower-income dwelling units by size and location on a map of the replacement lower-income housing that has been or will be provided. 5. The source of funding and a time schedule for the provision of the replacement dwelling units; 6. The basis for concluding that each replacement dwelling unit will remain a lower-income dwelling unit for at least 10 years from the date of initial occupancy; and 7. Information demonstrating that any proposed replacement of lower-income dwelling units with smaller dwelling units (e.g., a 2-bedroom unit with two 1-bedroom units), or any proposed replacement of efficiency or single-room occupancy(SRO)units with units of a different size, is appropriate and consistent with the housing needs and priorities identified in the HUD-approved Consolidated Plan and 24 CFR 42.375(b). To the extent that the specific location of the replacement dwelling units and other data in items 4 through 7 are not available at the time of the general submission,the City will identify the general location of such dwelling units on a map and comptete the disclosure and submission requirements as soon as the specific data is available. Replacement not Required Based on Unit Availability Under 24 CFR 42.375(d), the City may submit a request to HUD (or to the State, if not funded by the State) for a determination that the one-for-one replacement requirement does not apply based on objective data that there is an adequate supply of vacant lower-income dwelling units in standard condition available on a non-discriminatory basis within the area. Contacts The City is responsible for tracking the replacement of lower-income dwelling units and ensuring that they are provided within the required period. City of St. Joseph Date Mayor Date Administrator City of St. Joseph Comprehensive Rehabilitation Project Small Cities Development Program (SCDP) Income Reuse Plan All income and repayments received through the Small Cities Development Program (SCDP) loans will be used for further rehabilitation activities and will be consistent with the application for funds and the Contract Agreement. If income received exceeds$35,000 in any given federal fiscal year (Oct. 1—Sept. 30), the funds will follow federal policies (similar to originaf grant) regarding federal objectives, tiered environmental reviews, lead base paint, and federal labor standards. If income received is below the $35,000 threshold, it will still be used for rehabilitation activities, but following federal policies is not required. A SCDP Post Closeout Program Income Report will be accurately completed and submitted to the Minnesota Department of Employment and Economic Development (DEED) by October 15 each year. . Date Mayor Date Administrator CITY OF ST. JOSEPH SMALL CITIES DEVELOPMENT PROGRAM FAIR HOUSING PLAN The City of St. Joseph(hereinafter referred to as"the City"), in conjunction with Small Cities Development Program Grant#CDAP-17-0054-O-FY18, has the following plan to promote Fair Housing opportunities for all citizens in the community. 1. In the first year of the grant the City will post and maintain Fair Housing posters at City Hall and at other prominent locations within the city. 2. Fair Housing will be placed as a discussion topic at the required Public Hearing during the second yeax of the grant.� 3. In the third yeax of the grant the City will make available, Fair Housing brochures located at City Hall and at other prominent locations within the city. 4. As an alternate the Fair Housing Logo will be placed on all application forms for the full term of the grant. uj cn Q F Baker St > E [3-ACIT SL Fu Car,