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Home My WebLink AboutPK10-027 - Amendment - #2 - Habitat for Humanity - Neighborhood Stabilization Program - 08/10/2011 4^,O�Mkvso, 49 ecords Man.Ta- gemen ., - KEN _ _ Document WA9HINGTON CONTRACT COVER SHEET This is to be completed by the Contract Manager prior to submission to City Clerks Office. All portions are to be completed. If you have questions, please contact City Clerk's Office. Vendor Name: Habitat for Humanity Vendor Number: ID Edwards Number Contract Number: Y7- Io- U a / This is assigned by City Clerk's Office Project Name: Neighborhood Stabilization Program-Move to Housing Description: ❑ Interlocal Agreement ❑ Change Order ® Amendment ❑ Contract ❑ Other: Contract Effective Date: 2/23/10 Termination Date: 3/31/12 Contract Renewal Notice (Days): 30 Number of days required notice for termination or renewal or amendment Contract Manager: Dinah Wilson Department: Parks/Housing & Human Svs. Detail: (i.e. address, location, parcel number, tax id, etc.): This contract with Habitat for Humanity is supported through federal Neighborhood Stabilization Program funds and is administered by the Washington State Department of Commerce. Funds were used to purchase & rehabilitate three foreclosed residential properties. We have identified homeowners to purchase these properties. The purpose of Amendment # 2 is to change the status of Habitat for Humanity to a developer so that they do not have to track program income generated from the sale of properties. S:Public\RecordsManagement\Forms\ContractCover\adcc7832 1 11/08 Amendment Number:Two SECOND AMENDMENT SUB-RECIPIENT SERVICES AGREEMENT Between the City of Kent and HABITAT for HUMANITY OF SEATTLE/SOUTH KING COUNTY Neighborhood Stabilization Program - Move to Housing Project This Amendment modifies the above referenced Agreement; all other provisions of the Agreement that are not inconsistent with this Amendment shall remain in effect. 1. Contractor 2. Contractor 3. City of Kent Habitat for Humanity of Representative Representative Seattle/South King County Marty Kooistra Dinah Wilson (hereinafter referred to as Habitat Chief Executive Officer CDBG Coordinator for Humanity) Habitat for Humanity of Phone: 253-856-5076 Seattle/South King Email: County drwilson@ci.kent.wa.us Phone: 206-292-5240 X 103 Email: mkooistra@seattle- habitat.org 4. Original Contract Date S. Project Number: 6. Original Contract February 23, 2010 NSP 1001 Amount (and any previous amendments) 451 501 7. Amendment Amount S. New Contract 9. Original Agreement -0- Amount Title $451,501 Sub-recipient Services Agreement 10.Federal Funds (as 11.Federal Agency 12.State Agency applicable) 333.14.228 U.S. Department of Washington State Housing and Urban Department of Commerce Development HUD 13. Amendment Purpose: This amendment is needed for the following reasons: (A)To designate Habitat for Humanity as a developer as a recipient of Neighborhood Stabilization Program (NSP) funds from the City of Kent (hereinafter referred to as the City); (B)To amend the title page and all subsequent language of the original Sub-recipient Services Agreement between the City and Habitat for Humanity and designate Page 1 of 4 Amendment Number:Two Habitat for Humanity as a developer, rather than a sub-recipient; (QTo state what Habitat for Humanity is allowed and not allowed to do in its role as a developer; (D)To facilitate and specify how Habitat for Humanity may use revenue generated from the sale of homes purchased with NSP funds; and E To ensure that homes meet the period of affordability and resale requirements. For valuable consideration and by mutual consent of the parties, the project Agreement is modified as follows: A. Habitat for Humanity shall be designated as a developer. A developer is "a for-profit or private nonprofit individual or entity that the grantee provides NSP assistance to for the purpose of (1) acquiring homes and residential properties to rehabilitate for use or resale for residential purposes; and (2) constructing new housing in connection with the redevelopment of demolished or vacant properties. Developers are program beneficiaries and thus distinct from subrecipients, grantee employees, and contractors. Developers may receive NSP funds from either the grantee or a subrecipient. Developer led rehabilitation is undertaken pursuant to 24 CFR 570.202(b)(1). New housing construction is undertaken pursuant to 24 CFR 570.204, or the NSP notice published on October 6, 2008 as amended." NSP Policy Alert: Guidance on Developers, Subrecipients, and Contractors, released August 27, 2010. The City provided NSP funds to Habitat for Humanity for the purpose of acquiring foreclosed homes and residential properties to rehabilitate for use or resale for residential purposes. Habitat for Humanity meets the definition of developer because it is a private nonprofit entity as defined in 24 CFR 570.202 (b)(1) and can demonstrate ownership or control of the residential properties that it purchased and rehabilitated with NSP funds provided to it from the City of Kent. Habitat for Humanity owns the deeds to these residential homes and has the authority to resale these properties. B. The title page and all subsequent language of the original Sub-recipient Services Agreement between the City of Kent and Habitat for Humanity shall be amended to designate Habitat for Humanity as a developer, rather than a sub-recipient. The Sub-recipient Services Agreement shall hereinafter be referred to as The Developer Services Agreement. Page 2 of 4 Amendment Number:Two C. Habitat for Humanity may charge developer fees for its services. It is not required to follow OMB circulars or follow federal procurement rules. Habitat for Humanity may not provide housing counseling, but must ensure that homebuyers receive eight (8) hours of counseling. D. Because Habitat for Humanity is a developer, it is not required to treat revenue generated from the sale of residential properties as program income. These funds shall be considered as revenue to Habitat for Humanity and shall be tracked and recorded as part of the financial transactions of Habitat for Humanity's NSP Move to Housing Project. Habitat for Humanity shall provide the City an annual accounting of revenue generated from the sale of residential properties purchased with NSP funds provided by the City. The home located at 22932 126t" Place SE Kent, Washington 98031, was purchased with 89% in NSP funds and 11% in private funds. Consequently, Habitat for Humanity shall provide an accounting of 89% of mortgage payments generated from this property. Revenue generated from all homes shall be deposited in a segregated non- interest bearing account. Habitat for Humanity may use revenue generated from the sale of homes purchased with NSP funds to acquire and redevelop foreclosed residential properties within the City of Kent or for a similar project within the City of Kent upon mutual agreement between the City of Kent and Habitat for Humanity. Residential properties acquired and redeveloped must meet the period of affordability and resale requirements pursuant to 24 CFR 92.254(a)(5)(i). E. All acts consistent with the authority of the Agreement, previous Amendments (if any), and this Amendment, prior to the effective date of this Amendment, are hereby ratified and affirmed, and the terms of the Agreement, previous Amendments (if any), and this Amendment shall be deemed to have applied. F. The parties whose names appear below swear under penalty of perjury that they are authorized to enter into this Amendment, which is binding on the parties of this Agreement. Page 3 of 4 Amendment Number:Two G. Except as specifically amended, all remaining provisions of the Agreement shall remain in full force and effect IN WITNESS, the parties below have executed this Agreement, which will become effective on the last date written below. DEVELOPER: CITY OF KENT: Print Name: Marty Kooistra Pri a e: Suzette Cooke Title: Chief Executive Officer Title: Mayor DATE: t�o-/®C?a/l DATE: f/ NOTICES TO BE SENT TO: NOTICES TO BE SENT TO: SUB-RECIPIENT: CITY OF KENT: Marty Kooistra Dinah Wilson Chief Executive Officer City of Kent Habitat for Humanity of 220 Fourth Avenue South Seattle/South King County Kent, WA 98032 P.O. Box 88337 Tukwila, WA 98138 Phone: 253.856.5076 Fax: 253.856.6070 (206) 292-5240 (telephone) (206) 292-5241 (facsimile) APPROVED AS TO FORM: Kent Law Department Page 4 of 4