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First Amendment to Community Development Block Grant (CDBG) Subrecipient Affordable Housing Network, Inc. 90 Main Street HVAC Replacement Copyrighted September 18, 2023 City of Dubuque Consent Items # 012. City Council Meeting ITEM TITLE: FirstAmendment to Community Development Block Grant (CDBG) Subrecipient Affordable Housing Network, I nc. 90 Main Street HVAC Replacement SUM MARY: City Manager recommending City Council approve the first amendment to the Subrecipient Agreement with Affordable Housing Network, I nc., for HVAC equipment replacement at 90 Main Street for an additional $528,100 and authorize the Mayor to execute the amendment on behalf of the C ity. RESOLUT ION Authorizing the First Amendment to the C D BG Subrecipient Agreement Between the City of Dubuque and Affordable Housing Network, I nc. SUGGESTED Suggested Disposition: Receive and File;Adopt Resolution(s) DISPOSITION: ATTACHMENTS: Description Type MVM Memo City Manager Memo Amendment#1 AHNI 90 Main- Memo Staff Memo Amendment#1 AHNI 90 Main- Resolution Resolutions Amendment#1 AHNI 90 Main- Signed Supporting Documentation Dubuque THE CITY QF � All-Meriea Ciry DLT B E ; . � . � �� � � MaSt� Z�C� aYd t�Q Mt55ZSSZ Z zoa�•zoiz•�ai3 YP pp za��*zai� TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: First Amendment to CDBG Subrecipient - Affordable Housing Network, Inc. 90 Main Street HVAC Replacement DATE: September 13, 2023 Housing & Community Development Director Alexis Steger is recommending City Council approve the first amendment to the Subrecipient Agreement with Affordable Housing Network, Inc., for HVAC equipment replacement at 90 Main Street for an additional $528,100 and authorize the Mayor to execute the amendment on behalf of the City. The City of Dubuque entered into a Community Development Block Grant (CDBG) Subrecipient Agreement with Affordable Housing Network, INC. (AHNI) on June 5, 2023, to assist with HVAC equipment replacement at 90 Main. The original Subrecipient Agreement specified the funding amount to be $221,900. Due to a change in the scope of work for 90 Main, the bid estimates are much higher than anticipated. AHNI is completing an extensive rehab in a 32-unit, multi-family residential structure in the heart of Dubuque's lower main street. AHNI will be responsible for installing mini- split air conditioning units that service the residential units in accordance with all applicable building codes. Therefore, AHNI has requested an additional $528,100 to cover the project costs up to $750,000 and make this project viable. I concur with the recommendation and respectfully request Mayor and City Council approval. v Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Alexis Steger, Housing & Community Development Director Mary Bridget Corken-Deutsch, Community Development Specialist Dubuque THE CITY OF � AIFAneriea Cil� Du B E ��,����,����v��. ' � II ��' MRSt� iece on the Mississi 1 zoo��zoiz=zois �P pP zai�*zoi9 To: Michael C. Van Milligen, City Manager From: Alexis M. Steger, Housing & Community Development Director Date: September 11, 2023 Subject: First Amendment to CDBG Subrecipient - Affordable Housing Network, Inc. 90 Main Street HVAC Replacement Introduction The attached memorandum transmits the first amendment to the subrecipient agreement for CDBG funds to assist Affordable Housing Network, Inc (AHNI) with HVAC equipment replacement at 90 Main Street. Discussion The City of Dubuque entered into a Community Development Block Grant (CDBG) Subrecipient Agreement with Affordable Housing Network, INC. (AHNI) on June 5, 2023, to assist with HVAC equipment replacement at 90 Main. The original Subrecipient Agreement specified the funding amount to be $221,900. Due to a change in the scope of work for 90 Main, the bid estimates are much higher than anticipated. AHNI is completing an extensive rehab in a 32-unit, multi-family residential structure in the heart of Dubuque's lower main street. AHNI will be responsible for installing mini- split air conditioning units that service the residential units in accordance with all applicable building codes. Therefore, AHNI has requested an additional $528,100 to cover the project costs up to $750,000 and make this project viable. The CDBG Annual Action Plan Amendment #1 has available funding, so this increase can be accommodated. Recommendation I recommend the City Council approve the first amendment to the Subrecipient Agreement with Affordable Housing Network, Inc., and authorize the Mayor to execute the amendment on behalf of the City. Prepared by: Mary Bridget Corken-Deutsch, Community Development Specialist RESOLUTION NO. 307-23 RESOLUTION AUTHORIZING THE FIRST AMENDMENT TO THE CDBG SUBRECIPIENT AGREEMENT BETWEEN THE CITY OF DUBUQUE AND AFFORDABLE HOUSING NETWORK, INC. Whereas, the City of Dubuque and Affordable Housing Network, Inc. (AHNI) entered into a CDBG Subrecipient Agreement dated June 5, 2023 with to improve the quality of existing affordable rental housing at 90 Main Street; and Whereas, the parties desire to modify the Subrecipient Agreement as set out in the First Amendment to the Subrecipient Agreement attached hereto; and Whereas, AHNI provides services to a minimum of 51% low/moderate income residents, meeting the CDBG National Objective of Low/Mod-Income Housing benefit, and eligible activity of 14B: Rehab, Multi-Unit Residential. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1 . That the First Amendment to the CDBG Subrecipient Agreement be approved. Section 2. That the Mayor of the City of Dubuque, or his designee, is hereby authorized and directed to execute said Amendment on behalf of the City of Dubuque, Iowa. Passed, approved, and adopted this 18th day of September 2023. Brad M. Ca agh, Mayor Attest Trish L. Gleason, Assistant City Clerk FIRST AMENDMENT TO SUBRECIPEINT AGREEMENT BETWEEN THE CITY OF DUBUQUE AND AFFORDABLE HOUSING NETWORK, INC. This First Amendment to Subrecipient Agreement, dated for reference purposes the 18th day of September ,2023, is made and entered into by the City of Dubuque, Iowa,a Responsible Entity administering Community Development Block Grant funds (City),and the Affordable Housing Network, Inc. (Subrecipient). WHEREAS, City and Subrecipient entered into a Subrecipient Agreement dated June 5, 2023 (the Subrecipient Agreement); and WHEREAS, City and Subrecipient desire to amend the Subrecipient Agreement as set forth herein. NOW THEREFORE,IN CONSIDERATION OF THE MUTUAL TERMS AND COVENANTS CONTAINED HEREIN,CITY AND SUBRECIPIENT AGREE AS FOLLOWS: Section 1. Section A.3 of the Subrecipient Agreement is hereby amended to read as follows: A.3 Project Budget The City agrees, subject to the terms and conditions of this Agreement,to compensate the Subrecipient for the Statement of Work outlined in Exhibit A, not to exceed$750,000.00. If indirect costs are charged,the Subrecipient will develop an indirect cost allocation plan for determining the appropriate Subrecipient's share of administrative costs and shall submit such plan to the City for approval, in a form specified by the City. Section 2. Except as modified herein,the Subrecipient Agreement shall remain in full force and effect. CITY OF DUBUQUE, IOWA Affordable Housing Network, Inc. By: By: tom" Brad M. Cavanagh, M Mary Beth 0 ei I, President