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HomeMy WebLinkAbout10-170 Resolution No. 10-170 RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT WITH NEIGHBORHOOD HOUSING SERVICES OF CHICAGO, INC. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Sean R. Stegall, City Manager, and Diane Robertson, City Clerk,be and are hereby authorized and directed to execute an agreement with Neighborhood Housing Services of Chicago,Inc.on behalf of the City of Elgin for homebuyer counseling for prospective homebuyers of the NSP Properties project, a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schock, Mayor Presented: August 25, 2010 Adopted: August 25, 2010 Vote: Yeas: 6 Nays: 0 Attest: s/Diane Robertson Diane Robertson, City Clerk I AGREEMENT THIS AGREEMENT is made and entered into this I I hday of 40� st , 2010, by and between the CITY OF ELGIN,an Illinois municipal corporation(hereinafter referred to as"CITY") and Neighborhood Housing Services of Chicago,Inc.(hereinafter referred to as"CONSULTANT"). WHEREAS, the CITY has purchased certain properties with funds granted to the CITY in accordance with and pursuant to the authority of sections 2301-2304 of the Housing and Economic Recovery Act of 2008(Public Law 110-289, 122 Stat.2850,enacted July 30,2008)under the federal Neighborhood Stabilization Program ("NSP"), administered by the Department of Housing and Urban Development ("HUD") (said properties are hereinafter referred to as the "NSP PROPERTIES"); and, WHEREAS,the CITY desires to engage the CONSULTANT to furnish certain professional services in connection with homebuyer counseling for prospective homebuyers of the NSP PROPERTIES (hereinafter referred to as the "PROJECT"); and, WHEREAS, the CONSULTANT represents that it is in compliance with any applicable Illinois Statutes relating to professional registration of individuals and has the necessary expertise and experience to furnish such services upon the terms and conditions set forth herein below; and, WHEREAS,the CONSULTANT represents and warrants that it is a HUD-approved housing counseling agency. NOW,THEREFORE,it is hereby agreed by and between the CITY and the CONSULTANT that the CITY does hereby retain the CONSULTANT for and in consideration of the mutual promises and covenants contained herein, the sufficiency of which is hereby acknowledged to perform the services relating to the PROJECT as described herein,subject to the following terms and conditions and stipulations, to-wit: 1. SCOPE OF SERVICES A. All work hereunder shall be performed under the direction of the Community Development Director of the CITY, hereinafter referred to as the "DIRECTOR." B. CONSULTANT shall perform homebuyer counseling services for prospective purchasers of NSP PROPERTIES under the PROJECT, as outlined in CONSULTANT'S proposal dated August 5,2010,a copy of which is attached hereto and made a part hereof as Exhibit A. It is expressly understood and agreed that all services to be provided under the PROJECT shall be provided only to those homebuyers that have been identified as prospective purchasers of the NSP PROPERTIES, and have expressed a specific interest in purchasing one of the CITY'S NSP PROPERTIES. , • 1 2. SCHEDULE A. CONSULTANT shall commence the services to be performed pursuant to this Agreement on September 1,2010,and shall terminate the same upon the purchase of all of the NSP PROPERTIES by qualified NSP homebuyers, or upon exhaustion of the not-to-exceed amount set forth in paragraph 4, below, whichever is sooner. B. CONSULTANT shall submit to the DIRECTOR monthly a status report,which shall contain a brief narrative identifying progress, findings and outstanding issues. C. On a quarterly basis,CONSULTANT shall report directly to DIRECTOR the number of individuals who have used its services,the number of families that completed the eight (8) hours of education, and the addresses and names of those individuals. CONSULTANT will also provide a list of those families that requested income qualification for NSP and will share that information, upon request, directly to the DIRECTOR. CONSULTANT shall further submit within such progress reports a class participant intake survey demonstrating that the individuals to whom it has provided homebuyer counseling under this Agreement have expressed an affirmative interest in purchasing one or more of the CITY'S NSP PROPERTIES. 3. WORK PRODUCTS All work products prepared by the CONSULTANT pursuant hereto including, but not limited to,reports,plans,designs, calculations,work drawings,studies,photographs,models and recommendations shall be the property of the CITY and shall be delivered to the CITY upon request of the DIRECTOR provided, however, that the CONSULTANT may retain copies of such work products for its records. Such work products are not intended or represented to be suitable for reuse by the CITY on any extension to the PROJECT or on any other project, and such reuse shall be at the sole risk of the CITY without liability or legal exposure to the CONSULTANT. 4. PAYMENTS TO THE CONSULTANT (Not to Exceed Method) A. For services provided the CONSULTANT shall be paid at the rate of$190.00 per household completing the 8-hour homebuyer counseling course and at the rate of $300.00 per household receiving one-on-one homebuyer counseling, as set forth in Exhibit A, with the total fee not to exceed $37,548 regardless of the actual costs incurred by the CONSULTANT unless substantial modifications to the scope of the work are authorized in writing by the DIRECTOR. B. The CITY shall make periodic payments to the CONSULTANT based upon homebuyer counseling services actually provided within thirty(30)days after receipt and approval of invoice. Invoices will be provided by the CONSULTANT to the - 2 - CITY on a quarterly basis with the first invoice to be provided within thirty(30)days of the close of the quarter ending December 31,2010,and will be provided quarterly thereafter. • 5. INVOICES A. The CONSULTANT shall submit invoices in a format approved by the CITY. Progress reports (paragraph 2.0 above) will be included with all payment requests. B. The CONSULTANT shall maintain records showing actual time devoted and cost incurred. The CONSULTANT shall permit the authorized representative of the CITY to inspect and audit,upon at least three(3)business days prior notice,all data and records of the CONSULTANT for work done under this Agreement. The CONSULTANT shall make these records available at reasonable times during the Agreement period, and for three (3)years after the termination of this Agreement. 6. TERMINATION OF AGREEMENT Notwithstanding any other provision hereof,the CITY may terminate this Agreement at any time upon fifteen(15)days prior written notice to the CONSULTANT.In the event that this Agreement is so terminated, the CONSULTANT shall be paid for services actually performed and reimbursable expenses actually incurred prior to termination, except that reimbursement shall not exceed the task amounts set forth under paragraph 4 above. 7. TERM This Agreement shall become effective as of the date the CONSULTANT is given a notice to proceed and,unless terminated for cause or pursuant to paragraph 6 or paragraph 2.A, shall be deemed concluded on the date the CITY determines that all of the CONSULTANT'S work under this Agreement is completed. A determination of completion shall not constitute a waiver of any rights or claims which the CITY may have or thereafter acquire with respect to any term or provision of the Agreement. 8. NOTICE OF CLAIM If the CONSULTANT wishes to make a claim for additional compensation as a result of action taken by the CITY,the CONSULTANT shall give written notice of his claim within 15 days after occurrence of such action. No claim for additional compensation shall be valid unless so made. Any changes in the CONSULTANT'S fee shall be valid only to the extent that such changes are included in writing signed by the CITY and the CONSULTANT. Regardless of the decision of the DIRECTOR relative to a claim submitted by the CONSULTANT,all work required under this Agreement as determined by the DIRECTOR shall proceed without interruption. - 3 - 9. BREACH OF CONTRACT If either party violates or breaches any term of this Agreement,such violation or breach shall be deemed to constitute a default, and the other party has the right to seek such administrative, contractual or legal remedies as may be suitable to the violation or breach; and, in addition, if either party,by reason of any default, fails within fifteen(15) days after written notice thereof by the other party to comply with the conditions of the Agreement,the other party may terminate this Agreement. Notwithstanding the foregoing,or anything else to the contrary in this Agreement,with the sole exception of an action to recover the monies the CITY has agreed to pay to the CONSULTANT pursuant to paragraph 4 hereof,no action shall be commenced by the CONSULTANT against the CITY for monetary damages. 10. INDEMNIFICATION To the fullest extent permitted by law,CONSULTANT agrees to and shall indemnify,defend and hold harmless the CITY, its officers,employees, agents,boards and commissions from and against any and all claims, suits, judgments, costs, attorneys fees, damages or other relief, including but not limited to workers compensation claims, in any way resulting from or arising out of negligent actions or omissions of the CONSULTANT in connection herewith,including negligence or omissions of employees or agents of the CONSULTANT arising out of the performance of this Agreement. In the event of any action against the CITY,its officers,employees,agents,boards or commissions,covered by the foregoing duty to indemnify,defend and hold harmless such action shall be defended by legal counsel of the CITY'S choosing. The provisions of this paragraph shall survive any expiration,completion and/or termination of this Agreement. 11. NO PERSONAL LIABILITY No official, director, officer, agent or employee of the CITY or CONSULTANT shall be charged personally or held contractually liable under any term or provision of this Agreement or because of their execution, approval or attempted execution of this Agreement. 12. INSURANCE A. Comprehensive Liability. The CONSULTANT shall provide,pay for and maintain in effect, during the term of this Agreement, a policy of comprehensive general liability insurance with limits of at least $1,000,000 aggregate for bodily injury and $1,000,000 aggregate for property damage. The CONSULTANT shall deliver to the DIRECTOR a Certification of Insurance naming the CITY as additional insured. The policy shall not be modified or terminated without thirty(30) days prior written notice to the DIRECTOR. The Certificate of Insurance shall include the contractual obligation assumed by the CONSULTANT under paragraph 10, entitled "Indemnification." - 4 - This insurance shall apply as primary insurance with respect to any other insurance or self-insurance programs afforded to the CITY. There shall be no endorsement or modification of this insurance to make it excess over other available insurance, alternatively, if the insurance states that it is excess or prorated, it shall be endorsed to be primary with respect to the CITY. B. Comprehensive Automobile Liability. Comprehensive Automobile Liability Insurance covering all owned,non-owned and hired motor vehicles with limits of not less than$500,000 per occurrence for damage to property. C. Combined Single Limit Policy. The requirements for insurance coverage for the general liability and auto exposures may be met with a combined single limit of $1,000,000 per occurrence subject to a $1,000,000 aggregate. D. Professional Liability. The CONSULTANT shall carry CONSULTANT'S Professional Liability Insurance Covering claims resulting from error,omissions or negligent acts with a combined single limit of not less than $1,000,000 per occurrence. A Certificate of Insurance shall be submitted to the DIRECTOR as evidence of insurance protection. The policy shall not be modified or terminated without thirty (30) days prior written notice to the DIRECTOR. 13. INTENTIONALLY OMITTED 14. NONDISCRIMINATION In all hiring or employment made possible or resulting from this Agreement,there shall be no discrimination against any employee or applicant for employment because of sex,age,race, color,creed,national origin,marital status,of the presence of any sensory,mental or physical handicap, unless based upon a bona fide occupational qualification, and this requirement shall apply to, but not be limited to, the following: employment advertising, layoff or termination,rates of pay or other forms of compensation and selection for training,including apprenticeship. No person shall be denied or subjected to discrimination in receipt of the benefit of any services or activities made possible by or resulting from this Agreement on the grounds of sex,race, color, creed, national origin, age except minimum age and retirement provisions, marital status or the presence of any sensory,mental or physical handicap. Any violation of this provision shall be considered a violation of a material provision of this Agreement and shall be grounds for cancellation, termination or suspension, in whole or in part, of the Agreement by the CITY. - 5 - 15. ASSIGNMENT AND SUCCESSORS This Agreement and each and every portion thereof shall be binding upon the successors and the assigns of the parties hereto; provided, however, that no assignment shall be made without the prior written consent of the CITY. 16. DELEGATIONS AND SUBCONTRACTORS Any assignment,delegation or subcontracting shall be subject to all the terms,conditions and other provisions of this Agreement and the CONSULTANT shall remain liable to the CITY with respect to each and every item,condition and other provision hereof to the same extent that the CONSULTANT would have been obligated if it had done the work itself and no assignment, delegation or subcontract had been made. Any proposed subcontractor shall require the CITY'S advanced written approval. 17. NO CO-PARTNERSHIP OR AGENCY This Agreement shall not be construed so as to create a partnership, joint venture, employment or other agency relationship between the parties hereto. 18. SEVERABILITY The parties intend and agreed that, if any paragraph, sub-paragraph,phrase, clause or other provision of this Agreement, or any portion thereof, shall be held to be void or otherwise unenforceable, all other portions of this Agreement shall remain in full force and effect. 19. HEADINGS The headings of the several paragraphs of this Agreement are inserted only as a matter of convenience and for reference and in no way are they intended to define,limit or describe the scope of intent of any provision of this Agreement, nor shall they be construed to affect in any manner the terms and provisions hereof or the interpretation or construction thereof. 20. MODIFICATION OR AMENDMENT This Agreement and its attachments constitute the entire Agreement of the parties on the subject matter hereof and may not be changed, modified, discharged or extended except by written amendment duly executed by the parties. Each party agrees that no representations or warranties shall be binding upon the other party unless expressed in writing herein or in a duly executed amendment hereof, or change order as herein provided. 21. APPLICABLE LAW This Agreement shall be deemed to have been made in,and shall be construed in accordance with the laws of the State of Illinois. Venue for the resolution of any disputes or the - 6 - enforcement of any rights pursuant to this Agreement shall be in the Circuit Court of Kane County, Illinois. 22. NEWS RELEASES The CONSULTANT may not issue any news releases without prior approval from the DIRECTOR, nor will the CONSULTANT make public proposals developed under this Agreement without prior written approval from the DIRECTOR prior to said documentation becoming matters of public record. 23. COOPERATION WITH OTHER CONSULTANTS The CONSULTANT shall cooperate with any other consultants in the CITY'S employ or any work associated with the PROJECT. 24. INTERFERENCE WITH PUBLIC CONTRACTING The CONSULTANT certifies hereby that it is not barred from bidding on this Agreement as a result of a violation of 720 ILCS 5/33E et seq. or any similar state or federal statute regarding bid rigging. 25. SEXUAL HARASSMENT As a condition of this contract, the CONSULTANT shall have written sexual harassment policies that include, at a minimum, the following information: A. the illegality of sexual harassment; B. the definition of sexual harassment under state law; C. a description of sexual harassment, utilizing examples; D. the vendor's internal complaint process including penalties; E. the legal recourse,investigative and complaint process available through the Illinois Department of Human Rights, and the Illinois Human Rights Commission; F. directions on how to contact the department and commission; G. protection against retaliation as provided by Section 6-101 of the Human Rights Act. A copy of the policies shall be provided by CONSULTANT to the Department of Human Rights upon request 775 ILCS 5/2-105. - 7 - 26. SUBSTANCE ABUSE PROGRAM. As a condition of this agreement, CONSULTANT shall have in place a written substance abuse prevention program which meets or exceeds the program requirements in the Substance Abuse Prevention Public Works Project Act at 820 ILCS 265/1 et seq. A copy of such policy shall be provided to the City's Assistant City Manager prior to the entry into and execution of this Agreement. 27. WRITTEN COMMUNICATIONS All recommendations and other communications by the CONSULTANT to the DIRECTOR and to other participants which may affect cost or time of completion, shall be made or confirmed in writing. The DIRECTOR may also require other recommendations and communications by the CONSULTANT be made or confirmed in writing. 28. NOTICES All notices, reports and documents required under this Agreement shall be in writing and shall be mailed by First Class Mail, postage prepaid, addressed as follows: A. As to CITY: Community Development Director City of Elgin 150 Dexter Court Elgin, Illinois 60120-5555 With a copy to: Corporation Counsel City of Elgin 150 Dexter Court Elgin, Illinois 60120-5555 B. As to CONSULTANT: John Groene Associate Director,Neighborhood Strategy Neighborhood Housing Services of Chicago, Inc. 163 E. Chicago Street Elgin, IL 60120 With a copy to: Robert Tucker Corporate General Counsel and Chief Risk Officer - 8 - Neighborhood Housing Services of Chicago, Inc. 1279 N. Milwaukee Avenue, 5th Floor Chicago, IL 60622. 29. COMPLIANCE WITH LAWS Notwithstanding any other provision of this Agreement it is expressly agreed and understood that in connection with the performance of this Agreement that the CONSULTANT shall comply with all applicable Federal, State,City and other requirements of law,including,but not limited to, any applicable requirements regarding prevailing wages, minimum wage, workplace safety and legal status of employees. Without limiting the foregoing, CONSULTANT hereby certifies, represents and warrants to the CITY that all CONSULTANT'S employees and/or agents who will be providing products and/or services with respect to this Agreement shall be legal residents of the United States. CONSULTANT shall also at its expense secure all permits and licenses,pay all charges and fees and give all notices necessary and incident to the due and lawful prosecution of the work, and/or the products and/or services to be provided for in this Agreement. The CITY shall have the right to audit any records in the possession or control of the CONSULTANT to determine CONSULTANT'S compliance with the provisions of this section. In the event the CITY proceeds with such an audit the CONSULTANT shall make available to the CITY the CONSULTANT'S relevant records at no cost to the CITY. CONSULTANT shall pay any and all costs associated with any such audit;provided,however,that the total amount that the CONSULTANT shall be required to pay for any audit under this paragraph 29 shall not exceed one thousand dollars ($1,000.00). CONSULTANT hereby further warrants and represents that it will comply with the regulations,policies, guidelines and requirements with respect to the acceptance and use of Neighborhood Stabilization Program("NSP") funds from the U.S. Department of Housing and Urban Development("HUD") authorized under Title III of the Housing and Economic Recovery Act of 2008(the"ACT"),and with the"Assurances and Certifications"set forth in Exhibit B, attached hereto and incorporated herein by this reference. 1N WITNESS WHEREOF,the parties hereto have entered into and executed this agreement effective as of the date and year first written above. SIGNATURE PAGE FOLLOWS - 9 - FOR THE CITY: FOR THE CONSULTANT: By / By: (Sean((e/.//id. egall, City Mana_/ Name: c5- IC. &g//t 4WA.' Attest: Its: het r i (4 ee rort City Clerk - 10 - EXHIBIT A August 5, 2010 Background According to the Federal guidelines, purchasers of NSP properties must receive eight (8) hours of pre-purchase training and education in order to be qualified to purchase an NSP- subsidized property. NHS of the Fox Valley, a related entity and affiliate of Neighborhood Housing Services of Chicago, Inc. (NHS), will provide the following services to the City of Elgin. Program Delivery and Service Fees NHS uses a four part, eight (8) hour pre-purchase training curriculum developed in partnership with NeighborWorks America to educate potential homebuyers in a classroom setting about budgeting, credit, home finance options, insurance, taxes and related issues. These classes are taught each week in both English and Spanish. Each class is taught by a NeighborWorks trained and certified housing counselor. The average class has 20 individuals attending which allows for interaction with the instructor. The classes are free and participants are provided with the publication "Realizing the American Dream: A Manual for Homebuyers" at no charge. After completing the classes, participants are invited to continue meeting individually with a housing counselor to review their specific situation and work towards receiving a pre-approval for purchase financing. A Certificate is provided to graduates of the training to verify that they have received eight (8) hours of training. NHS plans to reach 200 homebuyers through the training classes with 150 completing the eight (8) hours of education and training in order to meet the qualifications for the purchase of an NSP property. Based on our experience of the past two years, 60 percent (90 of the 150 completing the eight (8) hours) will be income qualified to purchase an NSP property. The Service fees and associated budget to train, counsel and pre-qualify potential NSP homebuyers shall be as follows: ■ NHS service fees for 8-hour homebuyer training curriculum will be $190 per household receiving homebuyer education; $28,500 will be budgeted to provide the 8-hour curriculum for approximately 150 households. This service will be invoiced to the City of Elgin on a quarterly basis and paid promptly by the City of Elgin after receipt of such invoice. Accompanying each invoice, NHS of the Fox Valley will provide proof to the City of Elgin, by way of a survey signed by each homebuyer completing the training curriculum, stating that they are interested in buying one of the City of Elgin NSP properties. • NHS service fees for additional individual homebuyer counseling for first-time homebuyers will be $300 per 'household; $9,000 will be budgeted to provide individual pre-purchase counseling for approximately 30 households. This service will be invoiced to the City of Elgin on a quarterly basis and paid promptly by the City of Elgin after receipt of such invoice. Accompanying each invoice,NHS of the Fox Valley will provide proof to the City of Elgin, by way of a survey signed by each homebuyer that completes individual counseling, stating that they are interested in buying one of the City of Elgin NSP properties. Other Services Provided at no Cost Income Verification: For families wishing to qualify for the purchase of an NSP property, NHS also will verify household income eligibility for the City of Elgin, using the same procedures NHS uses to verify income eligibility for other federally-funded programs and for the Kane County First-time Homebuyer Program. Lending: Affordable fixed-rate mortgage loans are offered by NHS' non-profit mortgage lender, Neighborhood Lending Services, Inc. (NLS) - an Illinois residential mortgage licensee. NLS offers financing for home purchase with a down payment requirement of 3 percent. For those who choose NLS financing to purchase an NSP property in the city of Elgin, NLS also has a limited number of deferred and forgivable loans available to pay closing costs and enhance the purchase of NSP homes by first-time homebuyers who have household incomes less than 80% of the area median income. Marketing: The City of Elgin will bear the majority of the responsibility for marketing the NSP housing counseling and training program in conjunction with its other outreach related to the NSP program. However, NHS of the Fox Valley will promote the purchase of NSP properties, displaying property listings at the NHS of the Fox Valley offices located at 163 E. Chicago St. and distribute property listings to each individual that attends homebuyer education classes. NHS of the Fox Valley will also promote the purchase of NSP properties and distribute NSP marketing materials as standard practice in any appropriate outreach events for new homebuyers carried out by the NHS of the Fox Valley Neighborhood Director. Reporting, Payment and Marketing Requirements Funding: NHS of the Fox Valley will receive reimbursement for services provided once potential homebuyers complete the requisite 8-hour homebuyer counseling and training curriculum and/or the individual counseling as itemized in the "Program Delivery and Service Fees" Section. The amounts budgeted for the services will be as follows: • $28,500 8-hour Homebuyer training curriculum • $9,000 Additional individual pre-purchase counseling Invoices will be provided on a quarterly basis and paid promptly by the City of Elgin after receipt of such invoice; services will begin on September 1, 2010 and the first invoice will be provided within 30 days of the close of the quarter ending December 31, 2010 and each quarter thereafter. Reporting: On a quarterly basis, NHS of the Fox Valley will report directly to a person or department designated by the City of Elgin the number of individuals who have used its services, the number of families that completed the eight (8) hours of education and the addresses and names of those individuals. NHS of the Fox Valley will also provide a list of those families that requested income qualification for NSP and will share that information, upon request, directly to the City of Elgin. Staff contact information: John Groene, Associate Director, Neighborhood Strategy 773-329-4170; jgroenennhschicago.org ricrizi NHS NHS of the Fox Valley An Affiliate of Neighborhood Housing Services of Chicago,Inc. 163 E. Chicago Street, Elgin,Illinois 60120 Phone: (847) 695-0399 Fax: (847) 695-7011 HOMEBUYER EDUCATION NSP SURVEY NHS of the Fox Valley is participating in an exciting new project with the City of Elgin — the Neighborhood Stabilization Program (NSP). With funds from this federal program, the City of Elgin will be acquiring, rehabilitating and selling historic homes in the following original core neighborhoods of Elgin, all of which are accessible to the amenities of Downtown Elgin and transportation: Northeast Elgin — in collaboration with the Northeast Neighborhood Association (NENA) Gifford Park— in collaboration with the Gifford Park Association (GPA) Southwest Elgin — in collaboration with the Southwest Area Neighborhood Association (SWAN) Near West Elgin — in collaboration with the Near West Neighborhood Association (NWNA) Through the City of Elgin's NSP effort, these historic homes will be fully renovated, both preserving their historic features and updating them with the modern amenities and energy efficient upgrades expected by today's homebuyer. If you have any interest in purchasing one of the City of Elgin's NSP homes, please fill out the contact information below and sign this survey so that you can receive all of the latest listings for these homes. Your interest does not obligate you in any way to purchase one of these homes. Please note that the household maximum income restriction for these NSP homes is 120% of the Area Median Income, adjusted for household size (for example, $90,120 for a family of four) and occupancy requirements exist for buyers of NSP homes as well. Name: Address: Telephone: Email: Signature: EXHIBIT B ASSURANCES AND CERTIFICATIONS The CONSULTANT hereby warrants and represents that it will comply with the regulations, policies, guidelines and requirements with respect to the acceptance and use of Neighborhood Stabilization Program ("NSP") funds from the U.S. Department of Housing and Urban Development("HUD") authorized under Title III of the Housing and Economic Recovery Act of 2008 (the "ACT") in accordance with the ACT and City of Elgin policies. The ACT provides that these funds shall generally be treated as Community Development Block Grant ("CDBG") funds. Also, the CONSULTANT certifies with respect to the Agreement that: 1. It possesses legal authority to execute this Agreement with the City and to perform the work thereunder. 2. To the extent applicable, its governing body has duly adopted or passed as an official act, a resolution, motion or similar action authorizing the person identified as the official representative of the CONSULTANT to execute the Agreement, all understandings and assurances contained herein, and directing the authorization of the person identified as the official representative of the CONSULTANT to act in connection with the execution of the Agreement and to provide such additional information as may be required. 3. The Agreement and the work provided for therein will be conducted and administered in compliance with the following, as applicable: (A) Title VI of the Civil Rights Act of 1964 (Pub. L. 88-352 42 U.S.C. Sec 2000d et seq.) and implementing regulations issued at 24 CFR Part I; (B) Title VIII of the Civil Rights Act of 1968 (Pub. L. 90-208), as amended; and that the CONSULTANT will administer all programs and activities related to housing and community development in a manner to affirmatively further fair housing; (C) Section 109 of the Housing and Community Development Act of 1974, as amended, and the regulations issued pursuant hereto; (D) Section 3 of the Housing and Urban Development Act of 1968, as amended; (E) Executive Order 11246-Equal Opportunity, as amended by Executive Orders 11375 and 12086, and implementing regulations issued at 41 CFR Chapter 60; (F) Executive Order 11063-Equal Opportunity in Housing, as amended by Executive Order 12259, and implementing regulations at 24 CFR Part 107; (G) Section 504 of the Rehabilitation Act of 1973 (Pub. L. 93-112), as amended, and implementing regulations when published in effect; (H) The Age Discrimination Act of 1975 (Pub. L. 94-135), as amended, and implementing regulations when published in effect; (I) The relocation requirements of Title II and the acquisition requirements of Title III of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and the implementing regulations at 24 CFR Part 42, as required under 24 CFR 570.606; (J) The labor standards requirements as set forth in 24 CFR Part 570, Subpart K and HUD regulations issues to implement such requirements; (K) Executive Order 11988 relating to the evaluation of flood hazards and Executive Order 11738 relating to the prevention, control and abatement of water pollution; (L) The flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection Act of 1973 (Pub. L. 93-234); (M) The Fair Housing Act (42 U.S.C. 3601-20). 4. Its notification, inspection, testing and abatement procedures concerning lead-based paint will comply with 570.608. 5. When an Agreement is in excess of$100,000 it will comply with all applicable standards, orders, or requirements issued under Section 308 of the Clean Air Act (42 U.S.C. 1857(h), Section 508 of the Clean Water Act (33 U.S.C. 1368), Executive Order 11738, and Environmental Protection Agency regulation (40 CFR Part 15), which prohibit the use under nonexempt Federal contracts, grants or loans, of facilities included on the EPA list of Violating Facilities. The provision shall require reporting of violations to the County, HUD, and to the AESOP Assistant Administrator for Enforcement (EN-329). 6. It will not attempt to recover any capital costs of public improvements assisted in whole or in part with funds provided under Section 106 of the ACT or with amount resulting from a guarantee under Section 108 of the ACT by assessing any amount against properties owned and occupied by persons of low and moderate income, including any fee charged or assessment made as a condition of obtaining access to such public improvements, unless: (1) funds received under Section 106 of the ACT are used to pay the proportion of such fee or assessment that relates to the capital costs of such public improvements that are financed from revenue sources other than under Title I of the ACT; or (2) for purposes of assessing any amount against properties owned and occupied by low and moderate income persons, the CONSULTANT certifies that it lacks sufficient funds received under Section 106 of the ACT to comply with the requirements of subparagraph(1) above. 7. The CONSULTANT certifies that it will provide a drug-free workplace by: (A) Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession or use of a controlled substance is prohibited in the CONSULTANT'S workplace and specifying the actions that will be taken against employees for violation of such prohibition; (B) Establishing a drug-free awareness program to inform employees about: (1) The dangers of drug abuse in the workplace; (2) The CONSULTANT'S policy of maintaining a drug-free workplace; (3) Any available drug counseling, rehabilitation, and employee assistance programs; and, (4) The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace. (C) Making it a requirement that each employee to be engaged in the performance of the Agreement be given a copy of the statement required by paragraph(A); (D) Notifying the employee in the statement required by paragraph (A) that, as a condition of employment under the Agreement, the employee will: (1) Abide by the terms of the statement; and (2) Notify the employer of any criminal drug statute conviction for a violation occurring in the workplace no later than five days after such conviction; (E) Notifying the City of Elgin's Planning and Neighborhood Services Department within ten (10) days after receiving notice under subparagraph (D)(2) from an employee or otherwise receiving actual notice of such conviction; (F) Taking one of the following actions, within 30 days of receiving notice under subparagraph(D)(2), with respect to any employee who is so convicted: (1) Taking appropriate personnel action against such an employee, up to and including termination; or (2) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; (G) Making a good faith effort to continue to maintain a drug-free workplace through implementation of paragraphs (A), (B), (C), (D), (E) and (F). 8. In regards to lobbying,the CONSULTANT certifies: (A) No Federal appropriated funds have been paid or will be paid, by or on behalf of the CONSULTANT, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. (B) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. (C) The CONSULTANT shall require that the language of this certification be included in the award documents for all sub-awards at all tiers (including subcontracts, sub-grants, and contracts under grants, loans, and cooperative agreements) and that all CONSULTANTS shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. 9. The undersigned understands and agrees that it is a CONSULTANT of the Community Development Block Grant Program of the City of Elgin. The undersigned also agrees there shall be no discrimination against any employee who is employed in carrying out work from the assistance received from the City of Elgin and the Department of Housing and Urban Development, or against any applicant for such employment, because of race, color, religion, sex, age or national origin, including but not limited to employment, upgrading, demotion or transfer; recruitment or recruitment advertising; lay off or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The CONSULTANT further agrees to the following: (A) It will incorporate or cause to be incorporated into any subcontract, loan, grant or guarantee involving Federally assisted construction work, or modification thereof, which is paid for in whole or in part with funds obtained from the Neighborhood Stabilization Program, the language contained in HUD Equal Employment Opportunity Regulations at 42 CFR 130.15(b), in Executive Order 11246, as amended by Executive Orders 11375 and 12006, and implementing regulations issued in 41 CFR Chapter 60. r • • (B) It will be bound by said equal opportunity clause with respect to its own employment practices when it participates in any Neighborhood Stabilization Program construction. (C) It will assist and cooperate actively with the City of Elgin, the Department of Housing and Urban Development and the Secretary of Labor in obtaining the compliance of contractors and subcontractors with the equal opportunity clause and the rules, regulations and relevant orders of the Secretary of Labor. (D) It will furnish the City of Elgin, the Department of Housing and Urban Development and the Secretary of Labor such information as they may require for the supervision of such compliance, and will otherwise assist the City of Elgin and the Department of Housing and Urban Development in the discharge of primary responsibility for securing compliance. (E) It will refrain from entering into any contract or contract modification subject to Executive Order 11246 of September 24, 1965, with a contractor debarred from or who has not demonstrated eligibility for government contracts and Federally- assisted construction contracts pursuant to the Executive Order. (F) It will carry out such sanctions and penalties for violation of the equal opportunity clause as may be imposed upon contractors and subcontractors by the Secretary of Labor, the City of Elgin or the Department of Housing and Urban Development. (G) In the event that CONSULTANT fails or refuses to comply with the undertaking, the City of Elgin, or the Department of Housing and Urban Development may take any or all of the following actions: cancel, terminate or suspend, in whole or in part, this grant, refrain from extending any further assistance to the CONSULTANT until satisfactory assurance of future compliance has been received; and refer the case to the Department of Housing and Urban Development for appropriate legal proceedings. FOR THE CONSULTANT: By: w- - &14116.-------- J÷vtQ wf7 Nam:• C QG(7-, ►J(f rr. _ Its: . 0 OF E.4 Agenda Item No. City of Elgin ; 11(1 TCDF“'� August 5, 2010 j4 TO: Mayor and Members of the City Council FROM: Sean R. Stegall, City Manager CZ...d t-i « t't^ Matthew Fitzgibbon, Senior Planner SUBJECT: Neighborhood Stabilization Program Home Buyer Counseling Agreement with Neighborhood Housing Services PURPOSE The purpose of this memorandum is to provide the mayor and members of the city council with information to consider approving an agreement with Neighborhood Housing Services to provide home buyer counseling services, which is a federal requirement of Elgin's Neighborhood Stabilization Program. RECOMMENDATION rok It is recommended that the city council approve the agreement with Neighborhood Housing Services to provide homebuyer counseling services as part of Elgin's Neighborhood Stabilization Program. BACKGROUND The City of Elgin and Habitat for Humanity of Northern Fox Valley will sell 11 rehabilitated homes to income eligible households as part of Elgin's Neighborhood Stabilization Program (NSP). The U.S. Department of Housing and Urban Development (HUD) requires that prospective NSP homebuyers receive at least eight hours of homebuyer counseling. Neighborhood Housing Services (NHS) was identified by the city as an NSP partner to provide prospective homebuyers with the requisite homebuyer counseling. NHS is a HUD approved homebuyer counseling agency. NHS uses a four-part, eight-hour, pre-purchase curriculum developed in partnership with NeighborWorks America to educate and counsel potential homebuyers on budgeting, credit, home finance options, insurance, taxes and the responsibilities of homeownership in a group setting. These classes are taught each week in both English and Spanish. Each class is taught by a NeighborWorks trained and certified housing counselor. The average class has 20 individuals attending which allows for interaction with the instructor. The classes are free and participants are provided with the publication "Realizing the American Dream: A Manual for Homebuyers" at no charge. After completing the classes, participants are invited to continue meeting one-on-one with a housing counselor to review their financial situation and work towards receiving a pre-approval for purchase financing. A certificate is provided to graduates of the class to verify that they have received eight hours of training. r • NSP Agreement with Neighborhood Housing Services August 5,2010 Page 2 The city has budgeted $37,548 of its NSP allocation — or 1.7% of the total funds — toward homebuyer counseling, which is consistent with other NSP programs in the region. NHS plans to reach approximately 200 homebuyers through the classes with 150 completing the eight hours of education and training and qualify for the purchase of an NSP property. HUD has acknowledged, in its guidance material, that more households will receive homebuyer counseling than will actually purchase NSP homes. This has the duel benefit of garnering counseled, income qualified homebuyers for NSP homes, while also educating a broader pool of responsible and informed low income households in the Elgin community. Based on NHS's experience of the past two years, 60% — or 90 households - will be income qualified to purchase an NSP property. NHS's service fee for the eight hour home-buyer curriculum is $190 per household receiving homebuyer counseling, with $28,500 budgeted to provide the eight hour curriculum for approximately 150 households. NHS's service fee for the one-on-one homebuyer counseling is $300 per household, with $9,000 budgeted to provide one-on-one counseling for approximately 30 households. Additionally, NHS will provide, at no additional cost, marketing for Elgin's NSP homes and lender services to interested, income qualified households who have successfully completed the curriculum. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None. FINANCIAL IMPACT The cost of the agreement is $37,548. There are sufficient funds budgeted ($1,885,253) and available ($901,154) in the Community Development Block Grant fund, project number 155200, "NSP Acquisition and Rehab", account number 230-0000-791.78-02, to enter into this agreement with NHS. \AOYEGAL IMPACT An agreement will need to be entered into between the city and NHS for the provision of homebuyer counseling services for prospective NSP homebuyers. The draft agreement is attached . ALTERNATIVES 1. The city council may choose to approve the agreement with NHS. 2. The city council may choose not to approve the agreement with NHS. Respectfully submitted for council consideration. MF Attachment