G29-17 w/ Agreement Ordinance No. G29-17
AN ORDINANCE
AUTHORIZING EXECUTION OF A REAL ESTATE CONTRACT BETWEEN
THE CITY OF ELGIN AND SPILLANE AND SONS, INC.
REGARDING THE CONVEYANCE OF 277-79 N. SPRING STREET AND
209 FRANKLIN BOULEVARD, ELGIN, ILLINOIS
WHEREAS, Spillane and Sons, Inc. has proposed to redevelop the City of Elgin owned
properties at 277-79 N. Spring Street and 209 Franklin Boulevard with the construction of two
new single-family homes; and
WHEREAS, as part of such redevelopment, the City is agreeing to convey such properties
to Spillane and Sons, Inc., for a zero purchase price.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ELGIN, ILLINOIS that City Manager, Richard G. Kozal, and City Clerk, Kimberly A. Dewis, be
and are hereby authorized and directed to execute a real estate contract between the City of Elgin
and Spillane and Sons, Inc. for the conveyance of 277-79 N. Spring Street and 209 Franklin
Boulevard, Elgin, Illinois, to Spillane and Sons, Inc. for a zero dollar purchase price, and that the
form of such real estate contract shall be as approved by the Corporation Counsel.
David J. K ain,44ayor
Presented: June 28, 2017
Passed June 28, 2017
Omnibus Vote: Yeas: 9 Nays: 0
Recorded: June 28, 2017 _:; '�.
Published: June 30, 2017
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Kimberly Dewis#'Ierk
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NEIGHBORHOOD STABILIZATION PROGRAM FUNDING AGREEMENT
BETWEEN CITY OF ELGIN,ILLINOIS
AND
SPILLANE AND SONS,INC.
THIS AGREEMENT,having effective date of June 28, 2017 is entered into by and between
the City of Elgin,Illinois(herein called the"City"),and Spillane and Sons,Inc.(herein called the"Developer")which
has the following Federal ID 436-4304975.
WHEREAS,the City applied for Neighborhood Stabilization Program funds(herein called"NSP funds")
from the United States Government to be used for affordable housing activities under the Housing and Economic
Recover Act of 2008(herein called the"HERA");and
WHEREAS,the Catalog of Federal Domestic Assistance(CFDA)Number for said funds is 14-218 and they
were awarded by the U.S.Department of Housing and Urban Development(herein called"HUD")on January 30,
2009,as Award Number B-08-MN-17-0004 for the City's 2008 Program Year;and
WHEREAS,the City wishes to engage the Developer in the utilization of said funds,which shall not be
used for Research and Development.
NOW,THEREFORE,the parties agree to the following:
I. STATEMENT OF WORK
A. Project Description,Tasks,Schedule,and Budget
The Developer shall complete the project described in Exhibit A.Funds provided herein shall be
used in the manner described in said exhibit,which includes a description of the project,the tasks to be
performed by the Developer,a schedule for completing the tasks,and a project budget.
B. Level of Accomplishment
The Developer shall be responsible for completing the project identified herein and shall make all
documentation associated with the completion of the project available for inspection by the City and
representatives of HUD.
C. Staffing
The Developer will be responsible for all normal administrative services and expenses not funded
under this Agreement but required in order to undertake the project identified herein.
D. Performance Monitoring
The City will monitor the performance of the Developer against goals and performance standards
established herein.Substandard performance as determined by the City will constitute noncompliance
with this Agreement.if action to correct such noncompliance is not taken by the Developer within the
period of time specified by the City in its notification to the Developer,the City may initiate suspension or
termination procedures.
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II TIME OF PERFORMANCE
The work being performed by the Developer hereunder shall be completed according to the project
schedule contained herein.This Agreement shall terminate 60 days after the project completion date.In
accordance with the amendment procedures set forth in Paragraph VI,however,the term of this Agreement and
the provisions herein may be extended to cover any additional time period during which the Developer is in
control of funds provided herein,or other assets including program income.
III. CONVEYANCE OF CERTAIN VACANT PROPERTY AND FUNDING
In consideration of the project to be completed by the Developer hereunder,the City hereby agrees to
convey to the Developer,in consideration of one dollar,the properties commonly known as 209 Franklin
Boulevard,Elgin,Illinois 60120,P.I.N.06-13-105-005,and 277-279 North Spring Steet,Elgin,Illinois 60120,P.I.N.
06-13-105-001.
Also,the City shall pay to the Developer up to$42,780.89 in NSP funds received from HUD.Said funds
shall be used for the payment of expenses eligible under the NSP program and consistent with the project budget
contained in Exhibit A.
Payments are contingent upon the Developer's compliance with all applicable uniform administration
requirements as set forth in 24 CFR570.502.The Developer agrees to utilize funds available under this Agreement
to supplement rather than supplant funds otherwise available.
IV. NOTICES
Communication and details concerning this Agreement shall be directed to the following individuals:
CITY DEVELOPER
Josh Beck,Assistant Director for Com. Dev. Michael Spillane
Kane County Office of Community Reinvestment Spillane&Sons,Inc.
719 South Batavia Avenue 253 Trudy Court
Geneva IL 60134 Batavia,Illinois 60510
Phone:630-444-2960 Phone:630-688-4473
Email:beckjosh @countvofkane.org Email:mickevspillane @comcast.net
V. GENERAL CONDITIONS
A. General Compliance with Federal Regulations
The Developer agrees to comply with all applicable requirements of 24 CFR 570 concerning NSP
funds,all applicable portions of OMB's Uniform Administrative Requirements,Cost Principles,and Audit
Requirements for Federal Awards,and all other federal requirements and policies issued pursuant to
these regulations,including,but not limited to,those set forth in Sections Vill,IX and X of this Agreement.
The Developer shall be responsible for complying with all applicable changes or additions to the
requirements currently set forth in said regulations.The Developer agrees to comply with all other
applicable federal,state and local laws and regulations governing the funds provided under this
Agreement.
B. Independent Contractor
Nothing contained in this Agreement is intended to,or shall be construed in any manner,create
or establish the relationship of employer/employee between the parties.The Developer shall,at all times,
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remain an independent contractor with respect to the services to be performed under this Agreement.
The City shall be exempt from payment of all Unemployment Compensation,FICA,retirement,life and/or
medical insurance and Worker's Compensation.Insurance as the Developer is an independent contractor.
C. Hold Harmless
The Developer shall hold harmless,defend,and indemnify the City from any and all claims,
actions,suits,charges and judgments whatsoever that arise out of Developer's performance or
nonperformance of the services of subject matter called for in this Agreement.
D. Workers'Compensation
The Developer shall ensure that Workers'Compensation Insurance coverage is provided for all
employees involved in the performance of this Agreement.
E. Insurance&Bonding
The Developer shall carry sufficient insurance coverage to protect Agreement assets from loss
due to theft,fraud and/or undue physical damage,and as a minimum shall purchase a blanket fidelity
bond covering all employees in an amount equal to cash advances from the City.The Developer shall
comply with the bonding and insurance requirements of OMB's Uniform Administrative Requirements,
Cost Principles,and Audit Requirements for Federal Awards,Bonding and Insurance.
F. Funding Disclosure
The Developer shall credit the City and HUD for funding the project identified herein by including
the following statement on any sign that may be erected at the project site,and in any promotional
material that may be published in connection to the project:"Support for this project has been provided
by the City of Elgin,through its Community Development Department, with federal funds from the U.S.
Department of Housing and Urban Development."
VI. AMENDMENTS
The parties may amend this Agreement at any time provided that such amendments make specific
reference to this Agreement,are executed in writing,and are signed by a duly authorized representative of both
parties and approved by either party's government body to the extent required by state law,local charter or
otherwise. In addition,the City may,in its sole discretion,amend this Agreement to conform to federal,state or
local governmental guidelines,policies and available funding amounts.However,if any such amendments result in
a change in the funding,the scope of services,or the scheduling of services to be undertaken as part of this
Agreement such modifications will be incorporated only by written amendment signed by both parties.
VII. SUSPENSION AND TERMINATION
Either party may terminate this Agreement at any time by giving written notice to the other party at least
thirty(30)days before the effective date of such termination. However,any partial termination of the work to be
performed under this Agreement may only occur with the prior approval of the City.The City may also suspend or
terminate this Agreement,in whole or in part, if the Developer materially fails to comply with any term of this
Agreement,or with any of the rules,regulations or provisions referred to herein.In such event,the City may
declare the Developer ineligible for any future participation in City contracts,in addition to other remedies as
provided by law.In the event there is probable cause to believe the Developer is in noncompliance with any
applicable rules or regulations,the City may suspend payment of the Agreement funds until such time as the
Developer is found to be in compliance by the City or is otherwise adjudicated to be in compliance. In the event of
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any termination,all finished or unfinished documents,data,reports, maps,models,photographs or other
materials prepared by the Developer under this Agreement shall,at the option of the City,become the property of
the City.In the event of termination,the Developer shall be entitled to receive just and equitable compensation
for any satisfactory work completed prior to the termination.The City shall be entitled to the repayment of any
payments made to the Developer over and above that to which it is entitled as just and equitable compensation
for satisfactory work completed.
VIII. ADMINISTRATIVE REQUIREMENTS
A. Financial Management
1. Accounting Standards
The Developer agrees to comply with OMB's Uniform Administrative Requirements,
Cost Principles,and Audit Requirements for Federal Awards and adhere to the accounting
principles and procedures required therein,to utilize adequate internal controls,and to maintain
necessary source documentation for all costs incurred.
2. Cost Principles
The Developer shall administer the project in conformance with OMB's Uniform
Administrative Requirements, Cost Principles,and Audit Requirements for Federal Awards,as
applicable,for all costs incurred,whether charged on a direct or indirect basis.
B. Documentation and Record Keeping
1. Records to Be Maintained
The Developer shall maintain all records required by federal regulations as specified in
24 CFR 507.506,as they are pertinent to the activities to be funded under this Agreement.Such
records shall include,but not be limited to;
a. Records providing a full description of the activity undertaken;
b. Records demonstrating that each activity undertaken benefits low to moderate
income persons;
C. Records required to determine the eligibility of activities;
d. Records required to document the acquisition,improvements,use or
disposition of any real property acquired or improved with NSP assistance;
e. Records documenting compliance with the fair housing and equal opportunity
components of the NSP program to the extent applicable;
f. Financial records as required by 24 CFR 570.502;and
g. Other records necessary to document any required compliance with 24 CFR
570.600-570.612.
2. Retention
The Developer shall retain all records pertinent to expenditures incurred under this
Agreement for a period of five(5)years after the termination of all activities funded under this
Agreement,or after the resolution of all federal audit findings,whichever occurs later.Records
for non-expendable property acquired with funds under this Agreement shall be retained for five
(5)years after final disposition of such property.Records for any displaced person must be kept
for five(5)years after he/she has received final payment.Contact the City before disposing of
any records related to this Agreement.
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3. Disclosure
The Developer understands that client information collected under this Agreement is
private and the use or disclosure of such information,when not directly in connection with the
administration of the City's or the Developer's responsibilities with respect to services provided
under this Agreement is prohibited without the written consent of the client involved and,in the
case of a minor,that of a responsible parent/guardian,except to the extent such use or
disclosure is required by applicable federal,state or local law.
4. Property Records
The Developer shalt maintain real property inventory records,which clearly identify any
property purchased,improved or sold with project funds.
5. Close-Outs
The Developer's obligation to the City shall not end until all close-out requirements are
completed,as set forth in 24 CFR 92.507.Activities during this close-out period shall include,but
not be limited to,making final payments,disposing of program assets(including the return of all
unspent cash advances and program income balances to the City),and determining the
custodianship of records.
6. Asset Reversion
Upon expiration of this Agreement,the Developer shall transfer to the City all grant
funds in its possession,and any accounts receivable of the project attributable to grant funds.
At the time of project closeout, the City shall determine the appropriate disposition of
any equipment purchased with funds provided herein.The City shall permit the Developer to
retain title to such equipment,if the Developer assures the City that it intends to continue the
project for a period of not less than five years following closeout.
Any funds provided herein for the acquisition and/or improvement of property shall be
secured by a mortgage instrument recorded on said property.If,prior to the release and
satisfaction of said mortgage,the Developer disposes of or changes the use of such property,or
is found to be in default of any term contained therein,the Developer shall reimburse the City
according to the terms and conditions contained in said mortgage.
7. Audits
The Developer shall comply with OMB's Uniform Administrative Requirements, Cost
Principles,and Audit Requirements for Federal Awards,as applicable,and shall obtain,at its own
expense,any required audit(s).Audits shall be performed by an independent auditor in
accordance with generally accepted governmental auditing standards covering financial and
compliance audits.Audits shall include,in addition to the financial statement(s)of the Developer,
auditor's comments regarding the Developer's compliance and internal controls pertaining to the
expenditure of grant funds.The Developer shall submit one certified copy of each required audit
report to the City no later than six months following the close of the Developer's fiscal year for
single audits;and not later than six months following project closeout for grant audits.
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8. Records Inspections
All of the Developer's records with respect to any matters covered by this Agreement
shall be made available to the City,or its designees,or HUD,or its designees,at any time during
normal business hours,as often as deemed necessary,in order to audit,examine,or make
excerpts or transcripts of all relevant data.Any deficiencies noted in audit reports must be fully
cleared by the Developer within thirty(30)days after receipt by the Developer.Failure by the
Developer to comply with the above requirements will constitute a violation of this Agreement
and may result in the withholding of future payments.Specifically,all rights and remedies
regarding performance reviews as set forth in 24 CFR 570.900—570.913 shall be available to the
City and to HUD or their designees.
C. Reporting and Payment Procedures
1. Payment Procedures
In consideration of the work performed hereunder,the City will pay the Developer with
NSP funds available under this Agreement for eligible costs,consistent with the project budget
contained herein(see Exhibit A),and based on requests submitted by the Developer on forms
provided by the City.Such requests shall be accompanied by the appropriate receipts,invoices,
canceled checks,and/or other documentation required by the City.The Developer may not
request the disbursement of NSP funds under this Agreement until the funds are needed for the
payment of eligible NSP costs.The amount of each request must be limited to the amount
needed for such costs at the time the request is submitted to the City.Advance disbursements of
NSP funds are not permitted under this Agreement.
The presentation of requests for the disbursement of NSP funds on the part of the
Developer shall constitute a warranty and representation by the Developer to the City that the
amounts requested are elements of the project budget contained herein;that all such amounts
are required for the payment of eligible costs that were actually incurred by the Developer;and
that the Developer will use the amounts requested only for eligible purposes under this
Agreement.Prior to any disbursement of NSP funds by the City,it reserves the right to perform
an independent review of any and all documentation and/or inspect the project site(s)to
independently determine that such disbursement is justified.If the City is dissatisfied with the
documentation submitted,or the status of the work performed hereunder,it may require the
Developer to submit further documentation or perform additional work before it makes any
further disbursements under this Agreement.The City reserves the right to reduce funds
available under this Agreement for any costs incurred by the City on behalf of the Developer to
complete the project to the City's satisfaction.Finally,the City shall not be required to make any
disbursements of NSP funds to the Developer if the City is not legally capable or permitted by law
to make such disbursements.
2. Program Income
Program income,as defined at 24 CFR 570.500(a),generated by activities carried out
with NSP funds made available under this Agreement,shall be remitted by the Developer to the
City within 30 days of receipt by the Project Sponsor.
3. indirect Costs
If indirect administrative costs are charged,the Developer will develop an indirect cost
allocation plan for determining the appropriate share of administrative costs and shall submit the
plan to the City for approval prior to the City's payment of any such costs.
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4. Performance Reports
The Developer shall submit to the City performance reports for the duration of this
Agreement.Said performance reports shall be in a form developed by the City and submitted
according to the schedule prescribed by the City.
D. Procurement
1. Standards of Procurement
The Developer shall be responsible for purchasing all goods and services necessary to
complete the project identified herein.The Developer shall select all members of its
development team,including contractors,subcontractors,suppliers,and those providing
professional services,in accordance with the terms of this Agreement.Said goods and services
do not need to be bid or procured competitively in accordance with OMB Cost Principles found at
2 CFR 200.The Developer shall,however,maintain records to demonstrate all costs are
reasonable in accordance with Appendix A of 24 CFR 570"Guidelines and Objectives for
Evaluating Project Costs and Financial Requirements IV."If the Developer does conduct
competitive bidding,the following statement(s)shall be included the solicitation: "This
contracting opportunity has been made possible,in part,by the City of Elgin,through its
Community Development Department,with federal funds provided by the U.S.Department of
Housing and Urban Development.Section 3 Businesses and Minority/Women-Owned
Businesses are encouraged to bid on this project."If applicable,such statement shall be
followed by the following:"Federal prevailing wage requirements apply to this contract."
The Developer shall maintain an inventory record of any non-expendable personal
property procured with grant funds.All program assets(unexpended program income,property,
equipment,etc.)shall revert to the City upon termination of this Agreement in accordance with
Section VIII. B.6.of this Agreement.
2. Travel
The Developer shall obtain written approval from the City for any travel expenses
charged to funds provided under this Agreement.
3. Relocation,Acquisition and Displacement
The Developer agrees to comply with 24 CFR 570.606 and OMB's Uniform
Administrative Requirements,Cost Principles,and Audit Requirements for Federal Awards
relating to the acquisition and disposition of all real property utilizing grant funds and to any
displacement of persons,businesses,non-profit organizations and farms occurring as a direct
result of any acquisition of real property utilizing grant funds.The Developer further agrees to
comply with any applicable ordinances,resolutions and/or policies concerning displacement of
individuals from their residences.
IX. PERSONNEL AND PARTICIPANT CONDITIONS
A. Civil Rights
1. Compliance
The Developer agrees to comply with all the requirements set forth in 24 CFR 570.600,
including,but not limited to,compliance with Title VI of the Civil Rights Act of 1964 as amended,
Title VIII of the Civil Rights Act of 1968 as amended,Section 109 of Title I of the Housing and
Community Development Act of 1974,Executive Order 11063,and Executive Order 11246 as
amended by Executive Order 12086.The Developer also agrees to comply with all applicable
provisions of the Americans with Disabilities Act of 1990.
2. Nondiscrimination
The Developer will not discriminate against any employee or applicant for employment
because of race,color,creed,religion,ancestry,national origin,sex,disability or other handicap,
age,marital status,or status with regard to public assistance.
3. land Covenants
This Agreement is subject to the requirements of Title VI of the Civil Rights Act of 1964
(P.L.88-352)and 24 CFR 570.With regard to the sale,lease,or other transfer of land acquired,
cleared or improved with assistance provided under this Agreement,the Developer shall cause or
require a covenant running with the land to be inserted in the deed or lease for such transfer,
prohibiting discrimination as herein defined,in the sale,lease or rental,or in the use or
occupancy of such land,or in any improvements erected or to be erected thereon,providing that
the City and the United States are beneficiaries of and entitled to enforce such covenants.The
Developer,in undertaking its obligation to carry out the project assisted hereunder,agrees to
take such measures as are necessary to enforce such covenant,and will not itself so discriminate.
4. Section 504
The Developer agrees to comply with any federal regulations issued pursuant to
compliance with Section 504 of the Rehabilitation Act of 1973,(29 U.S.C.706)which prohibits
discrimination against the disabled in any federally assisted program.The City shall provide the
Developer with any guidelines necessary for compliance with that portion of the regulations in
force during the term of this Agreement,
B. Affirmative Action
I. Approved Plan
The Developer agrees that it shall be committed to carrying out,pursuant to the City's
specifications,an Affirmative Action Program in keeping with the principles as provided in
Executive Order 11246 of September 24, 1965,The City can provide affirmative action guidelines
to the Developer to assist in the formulation of such a program.
2. W/MBE
The Developer will use its best efforts to afford minority and women-owned business
enterprises the maximum practicable opportunity to participate in the performance of this
Agreement.As used in this Agreement,the term"Minority and female business enterprise"
means a business at least fifty-one(51)percent owned and controlled by minority group
members or women. For the purpose of this definition, "minority group members"are African-
Americans,Spanish-speaking,Spanish surnamed or Spanish-heritage Americans,Asian-
Americans,and American Indians.The Developer may rely on written representations by
business enterprises in lieu of an independent investigation.
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3. Access to Records
The Developer shall furnish and cause each of its contractors and subcontractors to
furnish all information and reports required hereunder and will permit access to its books,
records and accounts by the City,HUD or its agent,or other authorized federal officials for
purposes of investigation to ascertain compliance with the rules,regulations and provisions
stated here.
4. EEO/AA Statement
The Developer wild,in all solicitations or advertisement for employees placed by or on
behalf of the Developer state that it is an Equal Opportunity or Affirmative Action employer.
s. Subcontract Provisions
The Developer will include the provision of Section IX.A.(Civil Rights),and a.
(Affirmative Action),of this Agreement in every subcontract or purchase order,specifically or by
reference,so that such provisions will be binding upon each subcontractor or vendor.
C. Employment and Contracting Provisions
1. Prohibited Activity
The Developer is prohibited from using funds provided herein or personnel employed in
the administration of the program for political activities,sectarian or religious activities,lobbying,
political patronage and nepotism activities.
2. Anti-lobbying
The Developer hereby certifies that:
a. No 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 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 this
Agreement,the Developer shall complete and submit Standard Form-LLL,
"Disclosure Form to Report Lobbying,"in accordance with its instructions.
3. OSHA
Where employees are engaged in activities not covered under the Occupations Safety
and Health Act of 1970,they shall not be required or permitted to work,be trained,or receive
services in buildings or surroundings or under working conditions which are unsanitary,
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hazardous or dangerous to the participant's health or safety.
4. Right to Know
Participants employed or trained for inherently dangerous occupations,i.e.,fire or
police jobs,shall be assigned to work in accordance with reasonable safety practices.
S. Labor Standards
The Developer agrees to comply with the requirements of the Secretary of Labor in
accordance with Federal Labor Standards Provisions,the Davis-Bacon Act,as amended,the
provisions of the Contract Work Hours and Safety Standards Act,the Copeland"Anti-Kickback"
Act and all other applicable federal,state and local laws and regulations pertaining to labor
standards insofar as those acts apply to the performance of this Agreement.The Developer
understands that such requirements are not limited to the work for which funding under this
Agreement is made available and agrees that all contractors engaged in contracts for
construction,renovation or repair of any building or work funded under this Agreement,as well
as work related in purpose,time and place to the work funded under this Agreement,shall
comply with federal requirements pertaining to such contracts.The Developer shall cause,or
require to be inserted,in all such contracts subject to such regulations,provisions meeting the
requirements of this paragraph and shall maintain documentation which demonstrates
compliance with hour and wage requirements.Such documentation shall be submitted to the
City.
6. Section 3
The Developer shall comply with the requirements of Section 3 of the Housing and
Urban Development Act of 1968 which requires that,to the greatest extent feasible,
employment and other economic opportunities generated by HUD financial assistance be
directed to low-and very low-income persons,particularly those who are recipients of
government assistance for housing,and to business concerns which provide economic
opportunities to such persons.
The Developer shall award contracts for work funded in whole or part under this
Agreement to the lowest and/or best bidder in accordance with the provisions of Section 3,
which allow qualifying business concerns to receive preference in the awarding of such contracts.
The Developer may rely on written representations by business concerns in lieu of conducting
independent investigations.The Developer agrees to include,monitor and enforce the following
clause(referred to as the Section 3 Clause)in such contracts where the amount of assistance
provided under this Agreement exceeds$100,000:
SECTION 3 CLAUSE
1. The work to be performed under this Contract is subject to the requirements of Section
3 of the Housing and Urban Development Act of 1968,as amended,12 U.S.C.1701u
(Section 3).The purpose of Section 3 is to ensure that employment and other economic
opportunities generated by HUD assistance or HUD-assisted projects covered by Section
3,shall,to the greatest extent feasible,be directed to low-and very low-income
persons,particularly persons who are recipients of HUD assistance for housing.
2. The parties to this contract agree to comply with HUD's regulations in 24 CFR 135,which
implement Section 3.As evidenced by their execution of this contract,the parties to this
contract certify that they are under no contractual or other impediment that would
prevent them from complying with the part 135 regulations.
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3. The contractor agrees to send to each labor organization or representative of workers
with which the contractor has a collective bargaining agreement or other
understanding,if any,a notice advising the labor organization or workers'
representative of the contractor's commitments under this Section 3 clause,and will
post copies of the notice in conspicuous places at the work site where both employees
and applicants for training and employment positions can see the notice.The notice
shall describe the Section 3 preference,shall set forth minimum number and job titles
subject to hire,availability of apprenticeship and training positions,the qualifications for
each;and the name and location of the person(s)taking applications for each of the
positions;and the anticipated date the work shall begin.
4. The contractor agrees to include this Section 3 clause in every subcontract subject to
compliance with regulations in 24 CFR 135,and agrees to take appropriate action,as
provided in an applicable provision of the subcontract in this Section 3 clause,upon a
finding that the subcontractor is in violation of the regulations in 24 CFR 135.The
contractor will not subcontract with any subcontractor where the contractor has notice
or knowledge that the subcontractor has been found in violation of the regulations in 24
CFR 135.
S. The contractor will certify that any vacant employment positions,including training
positions,that are filled(1)after the contractor is selected but before the contract is
executed,and(2)with persons other than those to whom the regulations of 24 CFR 135
require employment opportunities to be directed,were not filled to circumvent the
contractor's obligations under 24 CFR 135.
6. Noncompliance with HUD's regulations in 24 CFR 135 may result in sanctions,
termination of this contract for default,and debarment or suspension from future HUD
assisted contracts.
7. With respect to work performed in connection with Section 3 covered Indian housing
assistance,Section 7(b)of the Indian Self-Determination and Education Assistance Act
(25 U.S.C.450e)also applies to the work to be performed under this contract.Section
7(b)requires that to the greatest extent feasible(i)preference and opportunities for
training and employment shall be given to Indians,and(ii)preference in the award of
contracts and subcontracts shall be given to Indian organizations and Indian-owned
Economic Enterprises. Parties to this contract that are subject to the provisions of
Section 3 and Section 7(b)agree to comply with Section 3 to the maximum extent
feasible,but not in derogation of compliance with Section 7(b).
If the amount of HUD financial assistance provided under this and other Agreements
with the City exceeds$200,000,the Developer has the responsibility to comply with Section 3 in
its own operations,and ensure compliance in the operations of its contractors and
subcontractors.This responsibility includes but may not necessarily be limited to measures listed
at 24 CFR 135.32,"Responsibilities of the Recipient."
D. Conduct
1. Assignability
The Developer shall not assign or transfer any interest in this Agreement without the
prior written consent of the City thereto,provided,however,that claims for money due or to
become due to the Developer from the City under this Agreement may be assigned to a bank,
trust company or other financial institution without such approval.Notice of any Such
assignment or transfer shall be furnished promptly to the City.
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2. Hatch Act
The Developer agrees that no funds provided,nor personnel employed,under this
Agreement shall be in any way or to any extent engaged in the conduct of political activities in
violation of Chapter 15 of Title vl of the United States Code.
3. Conflict of Interest
The Developer agrees to abide by the provisions of 24 CFR 570.611 with respect to
conflicts of interest.The Developer further agrees that,in the performance of this Agreement,no
person having such a financial interest shall be employed or retained by the Developer.These
conflict of interest provisions apply to any person who is an employee,agent,consultant,officer,
or elected official of appointed official of the Developer or the City,or of any designated public
agencies which are receiving funds under the NSP program
4. Subcontracts
a. Approvals
The Developer shall not enter into any subcontracts with any agency or
individual in the performance of this Agreement without the written consent of the City
prior to the execution of such subcontract.
b. Monitoring
The Developer will monitor all subcontracted services on a regular basis to
assure compliance with the terms of this Agreement.Incidents of non-compliance shall
be reported to the City and supported with documented evidence of follow-up actions
taken to correct such areas of noncompliance.
C. Content
The Developer shall cause all of the provisions of this Agreement in their
entirety to be included in and made a part of any subcontract executed in the
performance of this Agreement.
S. Copyright
If this Agreement results in any copyrightable materials,the City and/or grantor agency
reserves the right to royalty-free,nonexclusive and irrevocable license to reproduce,publish or
otherwise use and to authorize others to use the work for government purposes.
6. Religious Organization
The Developer agrees that funds provided under this Agreement will not be utilized for
religious activities,to promote religious interest,or for the benefit of a religious organization in
accordance with federal regulations specified in 24 CFR 570.200(j).
7. Drug-Free Workplace
The Developer shall comply with the Illinois Drug Free Workplace Act(30 ILCS 580/1,et
se .),and,if applicable,with the Federal Drug Free Workplace Act(41 U.S.C.Section 701,et se g.)
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X. AFFORDABLE HOUSING PROVISIONS
A. lead Based Paint
The Developer agrees that any construction or rehabilitation of residential structures
with assistance provided under this Agreement shall be subject to HUD Lead-Based Paint
Regulations at 24 CFR 570.487/570.608 and 24 CFR Part 35,Subpart B.Such regulations pertain
to all NSP-assisted housing and require that all owners,prospective owners,and tenants of
properties constructed prior to 1978 be properly notified that such properties may include lead-
based paint.Such notification shall point out the hazards of lead-based paint and explain the
symptoms,treatment and precautions that should be taken when dealing with lead-based paint
poisoning and the advisability and availability of blood lead level screening for children under
seven.The notice should also point out that if lead-based paint is found on the property,
abatement measures may be undertaken.The regulations further require that,depending on the
amount of Federal funds applied to a property,paint testing,risk assessment,treatment and/or
abatement may be conducted.
B. Accessibility
The Developer shall work with any household that includes a person with disabilities to
provide accessibility modifications required under the policy of reasonable accommodations and
reasonable modifications.All such modifications shall be considered to be eligible NSP costs
under this agreement.
C. Homeowners
All homeowners assisted thru this agreement shall be eligible in accordance with the
provisions of this section.
1. Eligible Homeowners
Eligible homeowners must be determined to be income-eligible in compliance with the
limit checked below.
® Moderate Income—less than 80%of Area Median Income
❑ Low Income—less than 50%of Area Median Income
2. Income Certification and Documentation
Every homeowner shall be determined to be income eligible using the following form of
income determination,according to the requirements listed at 24 CFR 5703:
❑ Section 8 Part 5 Method
® IRS 1040A Method
❑ Census Long Form Method
XI. ENVIRONMENTAL CONDITIONS
The Developer shall cooperate with the City in its responsibilities pursuant to HUD's environmental review
procedures,24 CFR 58,as amended,and shall permit the City or its designees to conduct site inspections and
appropriate tests,examine applicable documents,and undertake such other activities as the City deems
appropriate in order to fulfill its responsibilities in the implementation of the National Environmental Policy Act of
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1969 and related acts_The City shall not make any payments contemplated under this Agreement until the
environmental review process has been completed by the City in accordance with the 24 CFR 58,nor may any
costs be incurred by the Developer until completion of the Environmental Review.The Developer will be notified
by the City when costs may begin to be incurred through the issuance of a written Notice to Proceed.
A. Air,Water&Environment
The Developer agrees to comply with the following regulations insofar as they apply to the
performance of this Agreement:
1. The Clean Air Act(42 U.S.C., 1857,et sea.);
2. The Federal Water Pollution Control Act as amended(33 U.S.C. 1251 et seq.)as
amended;
3. Environmental Protection Agency(EPA)regulations pursuant to 40 CFR 50,as amended;
4. The National Environmental Policy Act of 1969;and
5. HUD Environmental Review Procedures(24 CFR 58).
B. Flood Disaster Protection
To the extent applicable,the Developer agrees to comply with the requirements of the Flood
Disaster Protection Act of 1973(42 U.S.C.4106)in regard to the sale,lease or other transfer of land
acquired,cleared or improved under the terms of this Agreement.
C. Lead-Based Paint
The Developer agrees that any construction or rehabilitation of structures with assistance
provided under this Agreement shall be subject to HUD lead-based paint regulations 24 CFR 35,et.al.,
dated September 15, 1999.
D. Historic Preservation
The Developer agrees to comply with the requirements set forth in the National Historic
Preservation Act of 1966(16 U.S.C.470),as amended,and the procedures set forth in 36 CFR 800 et sea.,
insofar as they apply to the performance of this Agreement.
XII. AGREEMENT IN MULTIPLE COUNTERPARTS
The parties hereto agree that this Agreement may be executed in one or more counterparts,each of
which shall,for all purposes,be deemed an original and all of such counterparts,taken together,shall constitute
one and the same Agreement.
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IN WITNESS WHEREOF,the parties have executed this Agreement as of the date first written above.
For the City of Elgin:
Signature
Richard G.Kozal,City Manager
Name and Titl f(P inted)
Attest _
Kimberly A wis, City Clerk
Date June 28,2017
For the Developer:
Signature
Michael Spillane_,President J_ _
Name and Title(Printed)
Date
is
CITY OF ELGIN
NEIGHBORHOOD STABILIZATION PROGRAM
Exhibit A: Project Description,Tasks,Schedule,and Budget
Project Description
The Developer,in collaboration and coordination with the City,shall acquire the necessary real estate,
construct one(1)single-family dwelling unit and a detached two-car garage on said real estate,and market/sell the
improved real estate to an income-eligible household to serve as their principal residence,per development plans
on file with the City(herein called the"Project").The Project will be located on the properties commonly known as
209 Franklin Boulevard,Elgin,Illinois 60120,P.I.N.06-13-105-005,and 277-279 North Spring Steet,Elgin, Illinois
60120,P.I.N.06-13-105-001,which the City will convey to the Developer under this Agreement.Said Project shall
be partially financed with NSP funds provided herein and the Developer agrees to perform and/or cause to be
performed all tasks described herein in accordance with the schedule contained herein.
Tasks
The Developer shall be responsible for all tasks required to complete the Project described herein,
including,but not limited to the following:
1. Acquisition of real estate necessary to complete the Project described herein;
2. Preparation of the necessary plans and specifications for the construction with the input and
approval of the City,especially as it relates to matters involving interior and exterior design,
accessibility modifications,and the incorporation of both"green"and"healthy homes"features
where desirable and practicable;
3. Procurement of contractor services necessary to complete the construction;
4. Supervision of work performed to ensure compliance with the provisions of this Agreement;
5. Inspection of work performed to ensure satisfactory completion of the Project;
6. Submission of copies of inspection reports,occupancy permits,and/or letters of compliance as
evidence that the Project meets all applicable state and local requirements;
7. Marketing of the completed Project by,at a minimum,listing it in the multiple listing service and
displaying accurate and current program brochures,posters,and/or other literature provided by
the City at the project location;and
8. Keeping the Project in a well-maintained,clean,and attractive condition in order to attract the
interest of prospective buyers.
277-279 North Sarinp Street and 209 Franklin Boulevard
Project Schedule and Budget
Proiect Schedule
The Developer shall complete the project described herein according to the following schedule,which is
subject to revision by and final approval of the City:
Activity Timeframe to Complete
Complete Architectural Plans _ _ July 31,2017
I. Obtain Building Permit September 15, 2017_ _
Begin Construction October 1,2017
Complete Construction May 31,2018
I Place House on Market June 1,2018
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Project Budpet
Sources Amount
City of Elgin CDBG Funds(Provided under a separate agreement.) $18,037.11
City of Elgin Land Donation $6,146.00
City of Elgin NSP funds $42,780.89
Kane-Elgin HOME Funds(Provided under a separate agreement.) $252,000.00
Total Sources — $318,964.00
Uses Amount
Acquisition $6,146.00
Closing Costs $1,900.00
Survey $1,550.00
Architect&Engineering $2,250.00
Building Permits $2,600.10
Construction $281,715.00
Contingency $2,817.15
Developer Fee $14,085.75
Carrying Costs $3,900.00
Property Insurance _ $2,000.00
Total Uses $318,964.00
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