IDED Application for HOME Investment Partnership ProgramRESOLUTION NO.1-99
A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE AN
APPLICATION TO PARTICIPATE IN THE IOWA HOME INVESTMENT
PARTNERSHIP PROGRAM.
Whereas, the City of Dubuque recognizes a continuing need to assist rental unit
owners in improving their properties occupied by lower-income families; and
Whereas, the City recognizes the benefit of such assistance, in the form of
neighborhood impact and increased tax base; and
Whereas, the City has successfully administered State and Federally funded
rental rehabilitation programs since 1984, including HOME Program grants received in
1992, 1993 and 1998.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the Mayor is authorized and directed to execute an
application to the Iowa Department of Economic Development for participation in the
HOME Investment Partnership Program.
Section 2. That the City of Dubuque Housing Commission is directed to hold
the necessary public hearing regarding this application, in accordance with
requirements of Iowa Code, section 362.3
Section 3. That the City Manager is hereby authorized and directed to forward
said application and resulting standard executed contract to the respective agencies in
a timely fashion and as required by the Iowa Department of Economic Development.
Passed, approved and adopted this 4th day of January, 19
Attest:
City Clerk
THE CITY OF DUBUQUE
MEMORANDUM
DATE: 28 December 1998
TO: Mike Van Milligen, City Manager
FROM: David Harris, Housing Services Department
RE: Application for Funding for the HOME Investment Partnership
Program
INTRODUCTION
The purpose of this memorandum is to request City Council approval of an application
to the Iowa Department of Economic Development for HOME Investment Partnership
. Program funding.
BACKGROUND
The State of Iowa first received HOME Program funds in 1992. The HOME Investment
Partnership Program, created under the 1990 Cranston-Gonzales National Affordable
Housing Act, is designed to provide incentives for the rehabilitation of affordable rental
housing. The program is administered in Iowa by the Department of Economic
Development (IDEO). Dubuque and other Iowa "non-entitlement" cities may compete
for award of these funds.
In 1992, 1993 and again in 1998, Dubuque has received a total of $782,500 in grants
for local HOME Program activities. Thirty-one loans to date have been made for
rehabilitation of 68 units. Matched by over $1,211,000 in private owner funds, these
units have averaged $30,000 in rehab costs. Fifty-four units have been added to the
City's housing inventory, through rehabilitation of previously vacated buildings.
All funds loaned from this program are required to be repaid, with interest, over a 20-
year period. Payments are initially deferred, from one to three years. The interest rate
charged is fixed at three percent (3%). As much as $15,000 per-unit may be loaned by
the City. This amount must be matched 100% by the borrower. All payments received
are returned to a permanent revolving loan fund established for this purpose.
. In exchange for these favorable terms, borrowers are required to rent at affordable
rates, for up to 15 years. This means that: 1) all renters may earn no more than 80%
of area median income; and 2) that no renters may pay more than 30% of income for
rent. No Section 8 subsidy is provided as part of the financing package.
DISCUSSION
The Housing Department proposes to make application to IDEO for a fourth HOME
Program grant for rental rehabilitation, in the amount of $200,000. Current program
regulations require a 1:4 grantee match, meaning the City must provide $50,000 to
receive a $200,000 grant. These matching funds are budgeted in the Rental
Rehabilitation Program (RRP) account, received as interest and repayments of loans
previously made by Housing Services, beginning in 1984.
Administration of the funds will be performed by our Rehab staff, paid by Block Grant
(CDBG) funds. In addition, regulations allow grantees to apply for as much as ten
percent (10%) of the award for costs of administration. This means that the City will
request an additional $20,000 in administrative funds, under separate contract.
RECOMMENDATION
Preservation of existing housing stock is the single most cost-effective means of
providing affordable housing. The Housing Department's rehabilitation assistance
programs, coupled with on-going code enforcement, are the cornerstone of the City's
supply side approach to housing affordability. Our history in housing rehab program
administration has proven that approach a successful one.
For this reason, it is recommended that the Council approve an application to
participate in the Iowa HOME Investment Partnership Program. With the anticipated
$200,000 grant, matched by use of City RRP Program payments and private owner
contributions, approximately $550,000 will be made available to rehabilitate rental
housing in the City. Approximately 20 units should be rehabilitated if we are successful
in obtaining this award.
ACTION STEP
The action requested of the City Council is to approve the attached resolution,
authorizing the Mayor to execute an application to participate in the Iowa HOME
Investment Partnership Program.
DH/jn
Attach
A. GENERAL INFORMATION
ADDlicant
Applicant Name City of Dubuque
Applicant Type x local government
Chief OfficiallTitle
Signature
Applicant Address
Telephone/Fax Numbers
for profit
non-profit
CHDO
FederallD# 42-6004596
Ia 52001
(319) 589-4120 / (319) 589-0890
Contact Person
NamelTitle
Address
David Harris, Manager, Housing Services Department
1805 Central Avenue, Dubuque Ia 52001
Telephone/Fax Numbers (319) 589-4239 / (319) 589-4244
e. HOUSING FUND AMOUNT REQUESTED $ 220,000
C. PROJECT LOCATION (attach map and, if applicable, legal description of property):
Address or Target Area Census Tracts 1,2,5,6, 7.01, 7.02
grant $
loan
City City of Dubuque
County Dubuque
Population
Population
57,500
,
86,400
D. PROJECT SUMMARY (Describe project in the space below. Include activity type, number
of units, target beneficiaries, etc.):
The proposed project will provide long-term, low-interest loans to owners of rental
properties located in Dubuque census tracts nos. 1, 2, 5, 6, 7.01, and 7.02. In return,
rehabilitated units will be rented to tenants earning no more than 80% of area median
income, and as according to HOME Program guidelines. Up to $15,000 per unit may be
loaned, with a dollar-far-dollar owner match required.
At an average City loan amount of $10,000 per unit, the $200,000 grant requested will
provide for rehabilitation of 20 units. These units will be completed over a projected
24-month period.
.
In order to provide longer-term incentives to owners to maintain availability of units
to lowest income tenants, repayments will remain deferred for each year at least 50%
of assisted units in a project are rented to tenants earning no more than 50% of area
median income. In addition, HOME-assisted units will receive priority for referrals
of Section 8 Program households for the first year after completion.
Date of Issue: 10197
Page 27
E. ADMINISTRATION (Check all that apply):
x Applicant has received other federal/state funding (indicate program(s) and year(s)):
R~P awards 1984-1994 CDBG entitlement 1975- present
HOME Program awards 1992; 1993; 1998 Section 8 Program 1976 - present
HUD Lead Hazard Reduction Grant Round 4; 1997
Applicant has received no prior funding
x Applicant will administer application
Applicant will contract for administration
Applicant has contracted for administration with:
F. FLOODPLAIN INFORMATION
Are any activities anticipated to be located within a 1 OO-year floodplain? _ Yes ~No
H. BUDGET SUMMARY
Activity Description Housing Fund Other Source(s) of TOTAL $
Request $ Funds $ Funds
1. Rental Rehab 200,000 50,000 City of Dubuque
300,000 owner match 550,000
2.
3.
4.
Administration 20,000 20,000
TOTALS 220,000 350,000 570,000
List the contact person, telephone number and commitment status of each funding source:
SOURCE
CONTACT
TELEPHONE
COMMITMENT STATUS
City of Dubuque
Committed by Action of
City Council
Date of Issue: 10197
Page 28
APPLICANT/RECIPIENT
DISCLOSURElUPDA TE REPORT
IOWA DEPARTMENT OF
ECONOMIC DEVELOPMENT
Part I. Applicant Recipient Infonnatlon Indicate whether this is an Initial Report -1f... or an Update Report _
1. ApplicantlRecipient Name, Address and Telephone (include area code) Employer 10 or Social
City of Dubuque - Housing Services Dept. Security Number
1805 Central Avenue, Dubuque Ia 52001 (319) 589-4239 42-6004596
2. Projed Assistedllo be Assisted (Projed IActivity name and/or number and its location by Street Address, City and State
Census Tracts 1, 2, 5, 6, 7.01, 7.02 in City of Dubuque, Ia
3. Assistance RequestediReceived <to HUO Program 5. Amount
HOME RequestediReceived
Grants
$220,000
Pm II. ThNShold Debtnnlnatlona
1. Are you requesting HUO auiltance for a IJ)8Cific projed or activity, .and have you received or can you reasonably exped to receive, an
eggregate amount of aU forms of covered auistanee from HUD, States. and units of general local govemment in excess of 5200.000 during the
Federal fiscal year (October 1 through September 30) In which the ~n Is aubmitted?
-1L. YES _ NO If YES, complete the remainder of this report. If NO. plene answer the next question (2).
2. Is this apptication for a apecIfic housing project that Involves other federal govemment a..istance?
_ YES ..l.. NO If YES. complete the remainder of this report. If NO. sign the certification at the end of this report.
If your anawera 10 both questions .,. NO. you do not need to complete Perfs 11/ or IV. but you must sign the oertilicalJon at the end of the f8port.
Part III. Soun:ea and Uses of Funds
SOURCES
DepartmentlSt.ateIl.ocal Agency Program Type of Assistance Amount RequestedlProvided
Name and Address
City of Dubuque Rental Rehab Loan Matching Funds $50,000
Housing Services Repayments
Dept.
USES
..... deacrlption Amount
City of Dubuque Funds will be used as required match for HOME $50,000
Program Grants and will be loaned to borrowers under the same
terms and conditions as HOME funds.
FEDERAL ASSURANCES SIGNATURE PAGE
I, Terrance M. Duggan , (applicant official) hereby certify that in carrying out the
activities funded under the Housing Fund, City of Dubuque (applicant):
A) will minimize displacement of persons as a result of such activities;
B) will conduct and administer the program in conformity with Public Law 88-352 (Title VI of the Civil
Rights Act of 1964), and Public Law 90-284 (Title VIII of the Civil Rights Act of 1968), and will
affirmatively further fair housing;
C) will provide for opportunities for citizen participation, hearings, and access to information with respect
to our community development program comparable to the requirements found under sections 104(a)(2)
and 104(aX3)ofTitle I of the Housing and Community Development Act of 1974 as amended through
1987; and
D) will not attempt to recover any capital costs of public improvements assisted in whole or part under the
Housing Fund 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 (i) funds received under the Housing Fund are used to pay the
proportion of such fee or assessment that relates to the capital costs of such public improvements that
are fmanced from revenue sources other than under Public Law 93-383, as amended, or (ii) for purposes
of assessing any amount against properties owned and occupied by persons of low and moderate income
who are not persons of very low income, the city/county has certified to the State it lacks sufficient
funds received under the Housing Fund to comply with the requirements of clause (i) above.
.
I also certify that to the best of my knowledge and belief, data in the application is true and
correct, including commitment of local resources; the document has been duly authorized by the
governing body of the applicant; and the applicant will comply with all applicable federal and
state requirements, including the following, if assistance is approved:
A. Title I of the Housing and Community Development Act of 1974, as amended, and/or (as applicable) the
National Affordable Housing Act of 1990.
B. Financial Management guidelines issued by the U.S. Office of Management and Budget, as applicable,
including OMB Circulars A-122; A-87; A-128; A-133 and A-I0; and 24 CFR 85.
C. Applicable Civil Rights and Equal Opportunity statutes, including Title VI of the Civil Rights Act of
1964, as amended; Title VIII of the Civil Rights Act of 1968, as amended; Presidential Executive Order
11063, as amended by Executive Order 12259; Executive Order 11246, as amended; Section 504 of the
Rehabilitation Act of 1973 as amended; the Americans with Disabilities Act, as applicable; and the Age
Discrimination Act of 1975, as amended; Section 3 of the Housing and Urban Development Act of
1968; the Fair Housing Act and Executive Orders 11625, 12432 and 12138, as amended (minority- and
women-owned business enterprises).
D. Davis-Bacon Act, as amended, as applicable, Contract Work Hours and Safety Standards Act, the
Copeland Anti-kickback Act; the Department of Defense Reauthorization Act of 1986 and the Fair
Labor Standards Act
E. Section 102 f the Department of Housing and Urban Development Reform Act of 1989.
F. National Environmental Policy Act of 1969, and 24 Code of Federal Regulations Part 58
(Environmental Review);
G. Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended;
H. Lead-Based Paint Poisoning Prevention Act;
I. Residential Anti-Displacement and Relocation Assistance Plan;
J. Government-Wide Restriction on Lobbying and the Hatch Act;
K. Prohibition of the Use of Excessive Force.
Mary Davis, City Clerk
Typed Name of Person Attesting
SUBSTITUTE W 9/VENDOR UPDATE FORM
(Please print or type except for signature)
erder for the State of Iowa to pay you the amount that is due to you and to comply with the IRS regulations
reporting these payments, we are requesting the following information. Failure to provide this information will
result in withholding of payment.
91-522
625-1366
SOXA
Are you/your business:
YES
NO
Individual
[I]
[5]
x
or
Sole Proprietorship
x
If the answer to both was no, please complete Box B.
If you answered yes to either item, please provide
your Social Security number:
AND
Complete the Name and Address below:
Last Name:
Name:
Doing Business As:
Address:
Address:
City:
State:
Zip:
CPK-45933
SOXS
Is your business: YES
Corporation [C]
Partnership [P]
Estate or Trust [E]
Public Service Corp [U]
Government [G] X
Other [0]
Please explain City of Dubuque Iowa
NO
Please provide us with your
Federal Employer Identification number:
AND
Complete the Name and Address below:
Firm:
Doing Business As:
Address:
Address:
City:
State:
Zip:
15 I 21 0 I 0 11
CERTIFICATION MUST BE SIGNED BY VENDOR
Certification - Under penalties of perjury, I certify that:
(1) The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued
to me), and
(2) I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified
by the Internal Revenue Service (I tha I am subject to backup withholding as a result of a failure to report all interest
or dividends, or (~~ has no<i.fie am no longer subject to backup withholding.
Signature: r /~ Terrance M. Du an Date: 4 Jan 99
FOR OFFIC SE ONLY (Refer to Procedure 270.450 for more details)
From:
Dept.
Contact
D Add
D Change
(Include vendor code and
changes only)
D Delete
Reason
Added For Purchasing
DYes 0 No
STATEMENT OF NEED
Analysis of the need for affordable housing in Dubuque is performed continuously by the
City's Housing Services Department. Beginning with the release of the Affordable Housing
Task Force Report in 1991, a series of reports has been annually issued. The final
Comprehensive Housing Affordability Strategy (CHAS) was published in 1993. Since that
date, annual performance reports (APR) compiled by the Housing Department are made
part of the City's Consolidated Planning process, submitted each year to HUD. The most
recent APR was published in September 98.
In addition, since 1996 the City Council has allocated Community Development Block
Grant (CDBG) funds to conduct a city-wide survey of rental unit market indicators. A
representative sample of more than 500 units is taken each year in order to determine
rents and occupancy levels. This survey is conducted for the City by the Loras College
Center for Business and Social Research. A third survey is now nearing publication, as
part of the annual effort of the Housing Department to identify and analyze market
conditions.
In Dubuque, for rent-assisted units, there is no vacancy rate. Both the Housing
Department and all private providers of rent-assisted housing maintain waiting lists.
Average waiting time on the City's Section 8 Program list is approximately six months - for
932 units.
Private providers of rent-assisted housing own 540 units in the City of Dubuque. Total
rental units in Dubuque number approximately 7400.
1990 Census data analysis concludes that, since 1980, incomes have increased 30% in
Dubuque while rents have increased 42% (Dec 96). The growing affordability gap resulting
from this phenomenon continues to price lower-income renters out of the market, as they
cannot afford unsubsidized housing.
Based on Dubuque's median renter income, 43% of one-bedroom and 50% of two-
bedroom households cannot afford to pay HUD Fair Market Rents (Source: Low-Income
Housing Information Service).
Exacerbating these problems are two critical factors: 1.) New rent-assisted housing has
not been constructed in Dubuque since 1979. Existing, unsubsidized lower-cost housing
has been lostto demolitions and conversions; 2.) Dubuque's economic base has changed.
4000 manufacturing jobs were lost in the 1980's, replaced by 3000 service industry jobs.
Adjusted per-employee earnings actually decreased by 11 % in the 1980's. And this trend
has continued into the 1990's as well, with additional loss of higher-paying manufacturing
jobs.
Dubuque's household size has declined since 1980, increasing the number of households
and increasing demand for existing housing. This has resulted in upward pressures on
rents and removal of more units from the affordable category.
45% of Dubuque housing was built pre-1940; 80% was built before 1970. This aged
housing stock is expensive to maintain and energy inefficient. This results in deferred
maintenance, deterioration and disinvestment.
Single-female headed families increased by 11 % during the decade. Mean income for
these families - with minor children - is 44% of mean household income in Dubuque.
While housing prices fell or remained flat in the early 1980's, values appreciated steadily
throughout the 1987-95 period. Increasing home prices have continued to place
formidable barriers to ownership for families first entering the market. This has the effect
of keeping potential homebuyers as renters for longer periods, consequently driving up
rents.
Recent highway construction projects in Dubuque resulted in the demolition of 180 homes.
Only 300 homes are listed in the MLS for sale today. This scarcity also has the effect of
increasing prices and creating barriers to homeownership for low-moderate income
families.
Affordable housing continues to be lost to demolitions; when it is replaced by newly-
constructed homes, it is no longer affordable to low-moderate income households. The
average value of dwellings demolished by IDOT during the 1985-90 period was $26 000;
average valuation of homes constructed in Dubuque in Second Quarter 98 was $178 000.
(Source: Greater Dubuque Development Corporation)
42% of all Dubuque renter households earn 50% or less of area median family income.
Of this population of poor renter households, 38% pay more than half their income for
shelter costs. In other words, one of every six renter households in Dubuque pays more
than half their income for shelter. One in five elderly renters pays the same. (Source: Iowa
Dept of Economic Development)
The ACCRA 2nd Quarter 1998 cost of living survey listed Dubuque with the highest
housing cost index in the State of Iowa for new home purchase and for total principal and
interest payments. This index measures average costs relative to area median income
Using national estimators of incidence, and factoring in the age of Dubuque's housing
stock, it is estimated that 13 000 low-income renter and homeowner households are
occupying units with some incidence of lead paint. This is 59% of the City's housing units.
The October 97 city-wide rental market survey commissioned by the Dubuque City Council
concluded the following:
- City-wide median rents, by unit type:
single family $425/month
duplex $350
multi-unit
1-bedroom
2-bedroom
3-bedroom
$295
$400
$385
These results indicated that rents increased in the 1996-97 period as follows:
single family $ 25/month 6%
duplex $ 25 8%
multi-unit
1-bed room
2-bedroom
3-bedroom
$ 12
o
$(48)
4%
0%
(11 %)
The proposed rental rehab program will be operated in selected downtown Census tracts
with highest incidence of need. These indicators are summarized as follows:
Census Total % %Hshlds % Rental %Substd Med
Tract Hshlds Minority* rec Public Units** Rental Hshld
Assistance Units Income***
1 1160 2.6 22.0 85.6 17.7 $11 956
2 411 2.9 25.1 65.2 15.4 $12883
5 1722 1.8 16.0 44.6 58.4 $18906
6 1257 3.2 8.4 44.0 28.6 $23 146
7.01 1093 3.0 9.6 46.2 23.1 $25 635
7.02 1437 1.2 4.4 44.0 18.3 $23996
* The percentage of minority households, city-wide, is 1.6% (1990 Census).
** The percentage of rental units, City-wide, is 33%.
*** City-wide median household income is $27 027.
Note:
The identification of substandard rental units was done by means of an exterior survey of
dwellings in the target Census Tracts. This survey was done in conjunction with the 1993
CHAS, and determined dwellings to be substandard according to criteria developed by the
Housing Services Department.
Basically, 88% of the pre-1940 housing units are located within the older downtown and
near-north and south areas of the City. Renter-occupied households number 70% of the
City total. The number of families below poverty level is 69% of the City total. And all
areas report median household income below the City-wide average, ranging from a low
of 44% to a high of 94% of area median.
The City's housing and community development programs have been consistently targeted
to these neighborhoods, during the past 15 years, and have enjoyed widespread support
and participation. The Housing Department maintains close working relationships with
area lenders and leverages significant private participation in rehabilitation-loan projects.
During FY 1998, Housing Services expended over $1.3 million in CDBG funds in support
of housing rehabilitation projects, primarily in the downtown areas.
The Community and Economic Development (CEO) Department also provides a high
degree of program support to residents of these neighborhoods, utilizing CDBG and a
variety of other funding sources. In FY97, these efforts included a $4 million package of
support for purchase of the FDL packing plant, by Heartland Foods, preserving over 1000
moderate-income jobs. CEO also funds a neighborhood development specialist staff to
work directly with neighborhood associations, in such projects as leadership training and
association newsletters. Recreation programs are also funded with CDBG assistance,
benefiting area lower-income families. A micro-enterprise training program, sponsored by
CEO, has enabled several low-moderate income individuals to become entrepreneurs in
start-up of their own small businesses.
As Dubuque's rental housing stock is the oldest in Iowa, it presents significant obstacles
to feasible rehabilitation. Although the Housing Department's continuous code
enforcement program assures compliance with minimum housing conditions, candidate
properties for rehabilitations usually require complete gutting and replacement of all
mechanical systems.
Per-unit costs in excess of $30000 are not uncommon. In addition, the Department has
concentrated in recent years in assisting owners to rehabilitate long-term vacated buildings,
in the interest of adding affordable units to the housing inventory. These units are even
more costly to rehab.
As a result, public subsidy of these projects is essential. Without City/HOME assistance
provided through long-term, low-interest loans, expensive rehabilitations are infeasible.
Particularly, as Dubuque's Fair Market Rents were substantially reduced by HUD - some
types of units by as much as 20% - cash flows on rehabilitated projects are even more
marginal. The HOME Program is the catalyst for renovation of much of Dubuque's
downtown rental housing stock.
STATEMENT OF IMPACT
As mentioned in the discussion of need, HOME Program subsidy is essential for the
feasibility of rehabilitation of Dubuque's older rental housing stock. Without long-term, low-
interest rehab loans, especially given the HUD-mandated reduction in Fair Market Rents,
these projects just can't cash flow. And without cash flow, owners have no incentive to
improve older properties.
The identified need is a sufficient supply of affordable rental units for lower- income
Dubuque households. While some softness in the rental market has been experienced in
Dubuque during the past two years, resulting in increased vacancies, in fact rents have
increased for many rental units. All providers of rent-assisted units remain fully occupied,
with waiting lists. The experience ofthe Housing Department's Section 8 Program division
is that families, once issued a certificate or voucher for housing, are routinely finding
increasing difficulty in locating suitable units. It is common that we must issue extensions
of additional time in order for these families to find housing.
The proposed project, to increase the supply of decent, secure and energy- efficient rental
housing in Dubuque's downtown neighborhoods, directly addresses this need. This supply
is increased both by rehabilitating existing, substandard units and by renovating older
buildings which have remained vacant for many years. In some cases, this may include
adaptive re-use of non-residential buildings. In Dubuque, examples of this latter approach
include conversions of three former convents and a four-story 1880's warehouse building -
resulting in 77 newly-constructed units.
To maximize benefit to lower-income families, the Housing Department offers an incentive
to landlords participating in the HOME Program. All initial tenants in HOME-assisted units
are required to be Section 8 Program participants. Housing Services essentially "project-
bases" certificates and vouchers to all first-year tenants. This guarantees the owner both
tenants and cash flow. Initial rehab loan terms allow deferral of payments for 1-3 years,
depending on whether the cash flow is positive or negative in the first year.
However, if 50% or more of the assisted units remain occupied by tenants earning no more
than 50% of area median income, Le., Section 8 tenants, then mortgage payments remain
deferred, with no interest charged. This provides an incentive to the owner to continue to
rent to lower-income tenants, maximizing project benefit as intended.
The requested grant should at a minimum result in rehabilitation of 20 two- and three-
bedroom units. HOME funds, at $200 000, will be matched by a projected $300 000 in
owner contributions. As well, the City of Dubuque, by action of the City Council, has
earmarked $50 000 in Rental Rehabilitation Program (RRP) income as a match. These
funds will be loaned under the same terms as the HOME program grant.
As described in the discussion under the Need section, the intended project is a scattered-
site rental rehabilitation program in six selected downtown and near-downtown Census
Tracts. These tracts have been targeted due to the prevalence of older rental units, a high
incidence of which have been identified with code deficiencies, and which are occupied by
predominantly poor households. A map of these areas is attached.
Dubuque has operated a similar rental rehabilitation program in these areas since 1984,
first with RRP grants and later with HOME Program funds. The program is well-established
and supported by landlords, lenders and realtors. There is no opposition to the proposed
program.
The Housing Services Department has promulgated a rehabilitation standards manual for
use in administration of all RRP, CDBG and HOME assisted projects. This manual is
extensive in its requirements for standards of work, materials and design. Additionally, all
mechanical systems and other construction work is inspected by the City's Building
Services Department, in accordance with Uniform Building Code standards incorporated
in Dubuque's building and mechanical codes.
STATEMENT OF FEASIBILITY
The Housing Department's history with rental rehabilitations indicates a current cost of $25-30
000 per unit. The proposed program will provide a $15 000 loan, per-unit, matched dollar-for-
dollar with owner funds. It is estimated that the $200 000 in HOME funds will be matched with
$300000 in owner contributions. The City will also commit $50000 from RRP repayments.
This total loan fund of $550000 will accomplish 20-25 units, as projected.
As discussed in the Impact section, long-term affordability will be accomplished by providing
additional incentives to owners continuing to rent to tenants earning no more than 50% of area
median income. This incentive is continued deferral of the mortgage payment, at no interest.
In addition, compliance with HOME Program guidelines will be required, which stipulate a 15-
year affordability period.
The Housing Department annually certifies tenant eligibility through a mailed survey to all
tenants in HOME-assisted properties. All HOME-assisted units housing Section 8 Program
tenants are inspected annually by the Department's Section 8 staff, and inspected otherwise
in accordance with HOME Program annual certification requirements
According to federal guidelines, in substantially rehabilitated projects, no less than 5% of units
in every multi-family housing project must be made accessible; or, at least one unit in every
multi-family project must be made accessible, for persons with mobility impairments. In
addition, no less than 2% of units, or at least one unit, must be made accessible for persons
with vision or hearing impairments. The City of Dubuque enforces these requirements in
federally-funded rehabilitation projects.
The Housing Department conducts all rehabilitation activities in accordance with federal
Uniform Relocation Act requirements. As a policy, tenants are not permanently displaced from
housing as a result of rehab work; temporary relocations do occur, and all expenses accrue to
the property owner. Again, the majority of our rehabilitated units result from improvements to
vacant buildings.
The Housing Services Department has administered a variety of rehabilitation programs since
1984. These have included programs funded through Community Development Block Grant,
Rental Rehabilitation, HOME and Special Purpose Grant from HUD. Staff and administrative
expenses are budgeted through the City's annual CDBG entitlement. In addition, HOME
Program grants received in 1992, 1993, and 1998 have provided a percentage of administrative
expenses.
The requested grant, of $220000, includes a 10% administrative expenses amount of $20000.
The Housing Department provides all administrative services in connection with its rehabilitation
programs.
.
The City Council, has allocated $50 000 from Rental Rehab Program repayment revenues as
a match for HOME grants. In addition, it is projected that owner match requirements will result
in approximately $300 000.
The timeline for completion of activities funded by the proposed grant is 24 months form date
of execution of a contract with IDED.
CITY OF DUBUQUE
CENSUS TRACTS 1,2,
5,6,7.01&7.02
RESOLUTION NO. -= 99
A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE AN
APPLICATION TO PARTICIPATE IN THE IOWA HOME INVESTMENT
PARTNERSHIP PROGRAM.
Whereas, the Ci!;' of Dubuque recognizes a continuing need to assist rental unit
owners in improving their properties occupied by lower-income families; and
Whereas, the City recognizes the benefit of such assistance, in the form of
neighborhood impact and increased tax base; and
Whereas, the City has successfully administered State and Federally funded
rental rehabilitation programs since 1984, including HOME Program grants received in
1992, 1993 and 1998.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the Mayor is authorized and directed to execute an
application to the Iowa Department of Economic Development for participation in the
. HOME Investment Partnership Program.
Section 2. That the City of Dubuque Housing Commission is directed to hold
the necessary public hearing regarding this application, in accordance with
requirements of Iowa Code, section 362.3
Section 3. That the City Manager is hereby authorized and directed to forward
said application and resulting standard executed contract to the respective agencies in
a timely fashion and as required by the Iowa Department of Economic Development.
Passed, approved and adopted this 4th day of Jan
Attest:
HSG
A. GENERAL INFORMATION
ADDlicant
Applicant Name City of Dubuque
Applicant Type x local govemm~nt for profit
Chief OfficiallTi Mayor
Signature
non-profit
CHDO
Applicant Ad
Telephone/Fax Numbers
FederallD# 42-6004596
Ia 52001
(319) 589-4120 / (319) 589-0890
Contact Person
NamelTitle
Address
David Harris, Manager, Housing Services Department
1805 Central Avenue, Dubuque Ia 52001
Telephone/Fax Numbers (319) 589-4239 / (319) 589-4244
. B. HOUSING FUND AMOUNT REQUESTED $ 220,000
C. PROJECT LOCATION (attach map and, if applicable, legal description of property):
Address or Target Area Census Tracts 1, 2, 5, 6, 7.01, 7.02
grant $
loan
City City of Dubuque
County Dubuque
Population
Population
57,500
c
86,400
D. PROJECT SUMMARY (Describe projed in the space below. Include adivity type, number
of units, target beneficiaries, etc.):
The proposed project will provide long-term, low-interest loans to owners of rental
properties located in Dubuque census tracts nos. 1, 2, 5, 6, 7.01, and 7.02. In return,
rehabilitated units will be rented to tenants earning no more than 80% of area median
income,. and as according to HOME Program guidelines. Up to $15,000 per unit may be
loaned, with a dollar-for-dollar owner match required.
At an average City loan amount of $10,000 per unit, the $200,000 grant requested will
provide for rehabilitation of 20 units. These units will be completed over a projected
24-month period.
.
In order to provide longer-term incentives to owners to maintain availability of units
to lowest income tenants, repayments will remain deferred for each year at least 50%
of assisted units in a project are rented to tenants earning no more than 50% of area
median income. In addition, HOME-assisted units will receive priority for referrals
of Section 8 Program households for the first year after completion.
Date of Issue: 10197
Page 27
E. ADMINISTRATION (Check all that apply):
x Applicant has received other federal/state funding (indicate program(s) and year(s)):
R~P awards 1984-1994 CDBG entitlement 1975- present
HOME Program awards 1992; 1993; 1998 Section 8 Program 1976 - present
HUD Lead Hazard Reduction Grant Round 4; 1997
Applicant has received no prior funding
x Applicant will administer application
Applicant will contract for administration
Applicant has contracted for administration with:
F. FLOODPLAIN INFORMATION
Are any activities anticipated to be located within a 1 DO-year floodplain? _ Yes ~No
H. BUDGET SUMMARY
Activity Description Housing Fund Other Source(s) of TOTAL $
RequestS Funds $ Funds
1. Rental Rehab 200,000 50,000 City of Dubuque
300,000 owner match 0- 550,000
2.
3.
4.
Administration 20,000 20,000
TOTALS 220,000 350,000 570,000
List the contact person, telephone number and commitment status of each funding source:
CONTACT
TELEPHONE
COMMITMENT STATUS
SOURCE
City of Dubuque
Committed by Action of
City Council
Date of Issue: 10197
Page 28
STATEMENT OF NEED
Analysis of the need for affordable housing in Dubuque is performed continuously by the
City's Housing Services Department. Beginning with the release of the Affordable Housing
Task Force Report in 1991, a series of reports has been annually issued. The final
Comprehensive Housing Affordability Strategy (CHAS) was published in 1993. Since that
date, annual performance reports (APR) compiled by the Housing Department are made
part of the City's Consolidated Planning process, submitted each year to HUD. The most
recent APR was published in September 98.
In addition, since 1996 the City Council has allocated Community Development Block
Grant (CDBG) funds to conduct a city-wide survey of rental unit market indicators. A
representative sample of more than 500 units is taken each year in order to determine
rents and occupancy levels. This survey is conducted for the City by the Loras College
Center for Business and Social Research. A third survey is now nearing publication, as
part of the annual effort of the Housing Department to identify and analyze market
conditions.
In Dubuque, for rent-assisted units, there is no vacancy rate. Both the Housing
Department and all private providers of rent-assisted housing maintain waiting lists.
Average waiting time on the City's Section 8 Program list is approximately six months - for
932 units.
Private providers of rent-assisted housing own 540 units in the City of Dubuque. Total
rental units in Dubuque number approximately 7400.
1990 Census data analysis concludes that, since 1980, incomes have increased 30% in
Dubuque while rents have increased 42% (Dec 96). The growing affordability gap resulting
from this phenomenon continues to price lower-income renters out of the market, as they
cannot afford unsubsidized housing.
Based on Dubuque's median renter income, 43% of one-bedroom and 50% of two-
bedroom households cannot afford to pay HUD Fair Market Rents (Source: Low-Income
Housing Information Service).
Exacerbating these problems are two critical factors: 1.) New rent-assisted housing has
not been constructed in Dubuque since 1979. Existing, unsubsidized lower-cost housing
has been lost to demolitions and conversions; 2.) Dubuque's economic base has changed.
4000 manufacturing jobs were lost in the 1980's, replaced by 3000 service industry jobs.
Adjusted per-employee earnings actually decreased by 11 % in the 1980's. And this trend
has continued into the 1990's as well, with additional loss of higher-paying manufacturing
jobs.
Dubuque's household size has declined since 1980, increasing the number of households
and increasing demand for existing housing. This has resulted in upward pressures on
rents and removal of more units from the affordable category.
45% of Dubuque housing was built pre-1940; 80% was built before 1970. This aged
housing stock is expensive to maintain and energy inefficient. This results in deferred
maintenance, deterioration and disinvestment.
Single-female headed families increased by 11 % during the decade. Mean income for
these families - with minor children - is 44% of mean household income in Dubuque.
While housing prices fell or remained flat in the early 1980's, values appreciated steadily
throughout the 1987-95 period: Increasing home prices have continued to place
formidable barriers to ownership for families first entering the market. This has the effect
of keeping potential homebuyers as renters for longer periods, consequently driving up
rents.
Recent highway construction projects in Dubuque resulted in the demolition of 180 homes.
Only 300 homes are listed in the MLS for sale today. This scarcity also has the effect of
increasing prices and creating barriers to homeownership for low-moderate income
families.
Affordable housing continues to be lost to demolitions; when it is replaced by newly-
constructed homes, it is no longer affordable to low-moderate income households. The
average value of dwellings demolished by IDOT during the 1985-90 period was $26 000;
average valuation of homes constructed in Dubuque in Second Quarter 98 was $178 000.
(Source: Greater Dubuque Development Corporation)
42% of all Dubuque renter households earn 50% or less of area median family income.
Of this population of poor renter households, 38% pay more than half their income for
shelter costs. In other words, one of every six renter households in Dubuque pays more
than halftheir income for shelter. One in five elderly renters pays the same. (Source: Iowa
Dept of Economic Development)
The ACCRA 2nd Quarter 1998 cost of living survey listed Dubuque with the highest
housing cost index in the State of Iowa for new home purchase and for total principal and
interest payments. This index measures average costs relative to area median income
Using national estimators of incidence, and factoring in the age of Dubuque's housing
stock, it is estimated that 13 000 low-income renter and homeowner households are
occupying units with some incidence of lead paint. This is 59% of the City's housing units.
The October 97 city-wide rental market survey commissioned by the Dubuque City Council
concluded the following:
- City-wide median rents, by unit type:
single family $425/month
duplex $350
multi-unit
1-bedroom $295
2-bedroom $400
3-bedroom $385
These results indicated that rents increased in the 1996-97 period as follows:
single family $ 25/month 6%
duplex $ 25 8%
multi-unit
1-bedroom $ 12
2-bedroom 0
3-bedroom $(48)
4%
0%
(11 %)
The proposed rental rehab program will be operated in selected downtown Census tracts
with highest incidence of need. These indicators are summarized as follows:
Census Total % %Hshlds % Rental %Substd Med
Tract Hshlds Minority* rec Public Units** Rental Hshld
Assistance Units Income***
1 1160 2.6 22.0 85.6 17.7 $11 956
2 411 2.9 25.1 65.2 15.4 $12 883
5 1722 1.8 16.0 44.6 58.4 $18 906
6 1257 3.2 8.4 44.0 28.6 $23 146
7.01 1093 3.0 9.6 46.2 23.1 $25 635
7.02 1437 1.2 4.4 44.0 18.3 $23 996
* The percentage of minority households, city-wide, is 1.6% (1990 Census).
** The percentage of rental units, City-wide, is 33%.
*** City-wide median household income is $27 027.
Note:
The identification of substandard rental units was done by means of an exterior survey of
dwellings in the target Census Tracts. This survey was done in conjunction with the 1993
CHAS, and determined dwellings to be substandard according to criteria developed by the
Housing Services Department.
Basically, 88% of the pre-1940 housing units are located within the older downtown and
near-north and south areas of the City. Renter-occupied households number 70% of the
City total. The number of families below poverty level is 69% of the City total. And all
areas report median household income below the City-wide average, ranging from a low
of 44% to a high of 94% of area median.
The City's housing and community development programs have been consistently targeted
to these neighborhoods, during the past 15 years, and have enjoyed widespread support
and participation. The Housing Department maintains close working relationships with
area lenders and leverages significant private participation in rehabilitation-loan projects.
During FY 1998, Housing Services expended over $1.3 million in CDBG funds in support
of housing rehabilitation projects, primarily in the downtown areas.
The Community and Economic Development (CEO) Department also provides a high
degree of program support to residents of these neighborhoods, utilizing CDBG and a
variety of other funding sources. In FY97, these efforts included a $4 million package of
support for purchase of the FDL packing plant, by Heartland Foods, preserving over 1000
moderate-income jobs. CEO also funds a neighborhood development specialist staff to
work directly with neighborhood associations, in such projects as leadership training and
association newsletters. Recreation programs are also funded with CDBG assistance,
benefiting area lower-income families. A micro-enterprise training program, sponsored by
CEO, has enabled several low-moderate income individuals to become entrepreneurs in
start-up of their own small businesses.
As Dubuque's rental housing stock is the oldest in Iowa, it presents significant obstacles
to feasible rehabilitation. Although the Housing Department's continuous code
enforcement program assures compliance with minimum housing conditions, candidate
properties for rehabilitations usually require complete gutting and replacement of all
mechanical systems.
Per-unit costs in excess of $30000 are not uncommon. In addition, the Department has
concentrated in recent years in assisting owners to rehabilitate long-term vacated buildings,
in the interest of adding affordable units to the housing inventory. These units are even
more costly to rehab.
As a result, public subsidy of these projects is essential. Without City/HOME assistance
provided through long-term, low-interest loans, expensive rehabilitations are infeasible.
Particularly, as Dubuque's Fair Market Rents were substantially reduced by HUD - some
types of units by as much as 20% - cash flows on rehabilitated projects are even more
marginal. The HOME Program is the catalyst for renovation of much of Dubuque's
downtown rental housing stock.
STATEMENT OF IMPACT
As mentioned in the discussion of need, HOME Program subsidy is essential for the
feasibility of rehabilitation of Dubuque's older rental housing stock. Without long-term, low-
interest rehab loans, especially given the HUD-mandated reduction in Fair Market Rents,
these projects just can't cash flow. And without cash flow, owners have no incentive to
improve older properties.
The identified need is a sufficient supply of affordable rental units for lower- income
Dubuque households. While some softness in the rental market has been experienced in
Dubuque during the past two years, resulting in increased vacancies, in fact rents have
increased for many rental units. All providers of rent-assisted units remain fully occupied,
with waiting lists. The experience ofthe Housing Department's Section 8 Program division
is that families, once issued a certificate or voucher for housing, are routinely finding
increasing difficulty in locating suitable units. It is common that we must issue extensions
of additional time in order for these families to find housing.
The proposed project, to increase the supply of decent, secure and energy- efficient rental
housing in Dubuque's downtown neighborhoods, directly addresses this need. This supply
is increased both by rehabilitating existing, substandard units and by renovating older
buildings which have remained vacant for many years. In some cases, this may include
adaptive re-use of non-residential buildings. In Dubuque, examples of this latter approach
include conversions ofthree former convents and a four-story 1880's warehouse building -
resulting in 77 newly-constructed units.
To maximize benefit to lower-income families, the Housing Department offers an incentive
to landlords participating in the HOME Program. All initial tenants in HOME-assisted units
are required to be Section 8 Program participants. Housing Services essentially "project-
bases" certificates and vouchers to all first-year tenants. This guarantees the owner both
tenants and cash flow. Initial rehab loan terms allow deferral of payments for 1-3 years,
depending on whether the cash flow is positive or negative in the first year.
However, if 50% or more of the assisted units remain occupied by tenants earning no more
than 50% of area median income, Le., Section 8 tenants, then mortgage payments remain
deferred, with no interest charged. This provides an incentive to the owner to continue to
rent to lower-income tenants, maximizing project benefit as intended.
The requested grant should at a minimum result in rehabilitation of 20 two- and three-
bedroom units. HOME funds, at $200 000, will be matched by a projected $300 000 in
owner contributions. As well, the City of Dubuque, by action of the City Council, has
earmarked $50 000 in Rental Rehabilitation Program (RRP) income as a match. These
funds will be loaned under the same terms as the HOME program grant.
.
As described in the discussion under the Need section, the intended project is a scattered-
site rental rehabilitation program in six selected downtown and near-downtown Census
Tracts. These tracts have been targeted due to the prevalence of older rental units, a high
incidence of which have been identified with code deficiencies, and which are occupied by
predominantly poor households. A map of these areas is attached.
Dubuque has operated a similar rental rehabilitation program in these areas since 1984,
first with RRP grants and later with HOME Program funds. The program is well-established
and supported by landlords, lenders and realtors. There is no opposition to the proposed
program.
The Housing Services Department has promulgated a rehabilitation standards manual for
use in administration of all RRP, CDBG and HOME assisted projects. This manual is
extensive in its requirements for standards of work, materials and design. Additionally, all
mechanical systems and other construction work is inspected by the City's Building
Services Department, in accordance with Uniform Building Code standards incorporated
in Dubuque's building and mechanical codes.
STATEMENT OF FEASIBILITY
The Housing Department's history with rental rehabilitations indicates a current cost of $25-30
000 per unit. The proposed program will provide a $15 000 loan, per-unit, matched dollar-for-
dollar with owner funds. It is estimated that the $200 000 in HOME funds will be matched with
$300 000 in owner contributions. The City will also commit $50 000 from RRP repayments.
This total loan fund of $550000 will accomplish 20-25 units, as projected.
As discussed in the Impact section, long-term affordability will be accomplished by providing
additional incentives to owners continuing to rent to tenants earning no more than 50% of area
median income. This incentive is continued deferral of the mortgage payment, at no interest.
In addition, compliance with HOME Program guidelines will be required, which stipulate a 15-
year affordability period. .
The Housing Department annually certifies tenant eligibility through a mailed survey to all
tenants in HOME-assisted properties. All HOME-assisted units housing Section 8 Program
tenants are inspected annually by the Department's Section 8 staff, and inspected otherwise
in accordance with HOME Program annual certification requirements.
.
According to federal guidelines, in substantially rehabilitated projects, no less than 5% of units
in every multi-family housing project must be made accessible; or, at least one unit in every
multi-family project must be made accessible, for persons with mobility impairments. In
addition, no less than 2% of units, or at least one unit, must be made accessible for persons
with vision or hearing impairments. The City of Dubuque enforces these requirements in
federally-funded rehabilitation projects.
The Housing Department conducts all rehabilitation activities in accordance with federal
Uniform Relocation Act requirements. As a policy, tenants are not permanently displaced from
housing as a result of rehab work; temporary relocations do occur, and all expenses accrue to
the property owner. Again, the majority of our rehabilitated units result from improvements to
vacant buildings.
The Housing Services Department has administered a variety of rehabilitation programs since
1984. These have included programs funded through Community Development Block Grant,
Rental Rehabilitation, HOME and Special Purpose Grant from HUD. Staff and administrative
expenses are budgeted through the City's annual CDBG entitlement. In addition, HOME
Program grants received in 1992, 1993, and 1998 have provided a percentage of administrative
expenses.
.
The requested grant, of $220000, includes a 10% administrative expenses amount of $20000.
The Housing Department provides all administrative services in connection with its rehabilitation
programs.
The City Council, has allocated $50 000 from Rental Rehab Program repayment revenues as
a match for HOME grants. In addition, it is projected that owner match requirements will result
in approximately $300 000.
The timeline for completion of activities funded by the proposed grant is 24 months form date
of execution of a contract with IDED.
CITY OF DUBUQUE
CENSUS TRACTS 1 2
5, 6, 7.01 & 7.02 '
CITY OF DUBUQUE, IOWA
MEMORANDUM
December 29, 1998
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Application for Funding for the HOME Investment Partnership Program
Housing Services Manager David Harris is recommending that the City submit a
$200,000 grant request to the Iowa Department of Economic Development for
HOME Investment Partnership Program funding.
HOME program funds are designed to provide incentives for the rehabilitation of
affordable rental housing. In 1992, 1993 and again in 1998, Dubuque has received
a total of $782,500 in grants for local HOME Program activities. Thirty-one loans
to date have been made for rehabilitation of 68 units. Matched by over
$1,211,000 in private owner funds, these units have averaged $30,000 in rehab
costs. Fifty-four units have been added to the City's housing inventory through
rehabilitation of previously vacated buildings.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM/j
Attachment
cc: Barry Lindahl, Corporation Counsel
Tim Moerman, Assistant City Manager
David Harris, Housing Services Manager
THE CITY OF DUBUQUE, IOWA
MEMORANDUM
DATE: 28 December 1998
TO: Mike Van Milligen, City Manager
FROM: David Harris, Housing Services Department
RE: Application for Funding for the HOME Investment Partnership
Program
INTRODUCTION
The purpose of this memorandum is to request City Council approval of an application
to the Iowa Department of Economic Development for HOME Investment Partnership
Program funding.
BACKGROUND
The State of Iowa first received HOME Program funds in 1992. The HOME Investment
Partnership Program, created under the 1990 Cranston-Gonzales National Affordable
Housing Act, is designed to provide incentives for the rehabilitation of affordable rental
housing. The program is administered in Iowa by the Department of Economic
Development (IDEO). Dubuque and other Iowa "non-entitlement" cities may compete
for award of these funds.
In 1992, 1993 and again in 1998, Dubuque has received a total of $782,500 in grants
for local HOME Program activities. Thirty-one loans to date have been made for
rehabilitation of 68 units. Matched by over $1,211,000 in private owner funds, these
units have averaged $30,000 in rehab costs. Fifty-four units have been added to the
City's housing inventory, through rehabilitation of previously vacated buildings.
All funds loaned from this program are required to be repaid, with interest, over a 20-
year period. Payments are initially deferred, from one to three years. The interest rate
charged is fixed at three percent (3%). As much as $15,000 per-unit may be loaned by
the City. This amount must be matched 100% by the borrower. All payments received
are returned to a permanent revolving loan fund established for this purpose.
.
In exchange for these favorable terms, borrowers are required to rent at affordable
rates, for up to 15 years. This means that: 1) all renters may earn no more than 80%
of area median income; and 2) that no renters may pay more than 30% of income for
rent. No Section 8 subsidy is provided as part of the financing package.
DISCUSSION
The Housing Department proposes to make application to IDEO for a fourth HOME
Program grant for rental rehabilitation, in the amount of $200,000. Current program
regulations require a 1:4 grantee match, meaning the City must provide $50,000 to
receive a $200,000 grant. These matching funds are budgeted in the Rental
Rehabilitation Program (RRP) account, received as interest and repayments of loans
previously made by Housing Services, beginning in 1984.
Administration of the funds will be performed by our Rehab staff, paid by Block Grant
(CDBG) funds. In addition, regulations allow grantees to apply for as much as ten
percent (10%) of the award for costs of administration. This means that the City will
request an additional $20,000 in administrative funds, under separate contract.
RECOMMENDATION
Preservation of existing housing stock is the single most cost-effective means of
providing affordable housing. The Housing Department's rehabilitation assistance
programs, coupled with on-going code enforcement, are the cornerstone of the City's
supply side approach to housing affordability. Our history in housing rehab program
administration has proven that approach a successful one.
For this reason, it is recommended that the Council approve an application to
participate in the Iowa HOME Investment Partnership Program. With the anticipated
$200,000 grant, matched by use of City RRP Program payments and private owner
contributions, approximately $550,000 will be made available to rehabilitate rental
housing in the City. Approximately 20 units should be rehabilitated if we are successful
in obtaining this award.
ACTION STEP
The action requested of the City Council is to approve the attached resolution,
authorizing the Mayor to execute an application to participate in the Iowa HOME
Investment Partnership Program.
DH/jn
Attach
CITY OF DUBUQUE, IOWA
MEMORANDUM
21 April
To: Mary Davis, City Clerk
From: David Harris
The attached contracts for the city's recently approved HOME Program award from the Dept of
Economic Development (IDED). need the mayor's signature. A resolution passed by the Council
on 4 January 99 authorized his execution of these contracts.
Thanks.
IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT
HOME INVESTMENT PARTNERSHIP (HOME) PROGRAM
FUNDING AGREEMENT
FUNDING AGREEMENT NUMBER:
HOME MASTER CONTRACT NUMBER:
ACTIVITY TYPE:
AWARD TYPE:
HOME FUNDS AWARD AMOUNT:
FEDERAL FUNDS
STATE FUNDS
EFFECTIVE DATE:
WORK COMPLETION DATE:
99-HM-135-21
99-HM-135
Rental Rehabilitation less than $15,000
GRANT
$220,000
$220,000
$0
March 10, 1999
February 28, 2001
THIS HOME INVESTMENT PARTNERSHIP (HOME) PROGRAM FUNDING AGREEMENT is made
by and between the IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT, 200 East Grand Avenue, Des
Moines, Iowa 50309 ("Department" or "IDED") and Dubuque ("Recipient").
WHEREAS, the Department is designated to receive, administer, and disburse HOME funds; and
WHEREAS, the Recipient currently has a Master Contract with the Department to accept and administer
HOME funds, and has submitted an application for funding to the Department; and
WHEREAS, in approving the application the Department has relied upon the representations of the
Recipient as to the proposed activities; management and financial condition of the Recipient; investment of other
funds; and other material information contained therein;
NOW, THEREFORE, the Recipient accepts the terms and conditions set forth in this Funding Agreement
and the Master Contract for this Funding Agreement. In consideration of the mutual promises contained in the
Master Contract and this Funding Agreement and other good and valuable consideration, it is agreed as follows:
ARTICLE 1
TERMS OF A WARD
1.1 TIME OF PERFORMANCE. The services ofthe Recipient are to commence as of the Effective Date
and shall be undertaken in such sequence as to assure their expeditious completion. All of the services required
hereunder shall be completed on or before the Work Completion Date. This agreement shall be determined to have
been completed when the Department determines the activity to be completed in accordance with the requirements
of the HOME program regulations contained in 24 CFR Part 92. Specifically, the Funding Agreement is in effect
for the term of affordability as defined in Exhibit A of the Funding Agreement as provided in Section 1.0 of the
General Provisions, Attachment A of the Master Contract.
1.2 MAXIMUM PAYMENTS. It is expressly understood and agreed that the maximum amounts to be paid
to the Recipient by the Department for any item of work or service shall conform to the budget as presented in
Exhibit A, "Program Schedule". It is further understood and agreed that the total of all payments to the Recipient
by the Department for all work and services required under this Funding Agreement shall not exceed A ward
Amount unless modified by written amendment of this Funding Agreement as provided in Section 1.0 of the
General Provisions, Attachment A of the Master Contract.
1.3 OTHER PROJECT FUNDS. The Recipient agrees to provide local contributions to the Activity as
defined in the "Other Project Funds" column of the budget shown on Exhibit A, "Program Schedule".
Expenditures above this level, necessary to complete the statement of work and services, shall be paid with Other
Project funds. Reports of the Other Project funds expended shall be included in the financial report required in
Article 7 .1 (b) Reports, of the Master Contract.
AGREEMENT NUMBER: 99-HM-135-21
PAGE: 2
1.4
ADDITIONAL DEED RESTRICTION REOUlREMENTS. None.
ARTICLE 2
SECURITY
2.1 SECURITY INSTRUMENTS. The Recipient shall ensure the execution in the Department's favor all
security agreements, fmancing statements, mortgages, personal and/or corporate guarantees (hereafter, "Security
Instruments") as required by the Department. The following Security Instruments shall be required of the
Recipient: Mortgage and Note.
2.2 FINANCING STATEMENT. For each Project entered into by the Recipient, the Department requires the
filing ofa financing statement. The Recipient shall provide the Department with a copy of the closing statement
and a certificate of title showing the recordation of the security interests of the Department and all other lienholders
of record. The Recipient shall ensure that the financing statement(s) include language approved by the Department
to secure its interests.
2.3 MORTGAGE. For each Project entered into by the Recipient, the Department requires the filing ofa
mortgage. The Recipient shall provide the Department with the original date-stamped. recorded mortgage and an
attorney's Opinion of Title reflecting the interests of the Department.
2.4 FILING. The Recipient shall file in a proper and timely manner any and all Security Instruments required
in connection with each Funding Agreement, as required by the Security Provisions of the Funding Agreement, and
promptly providing the Department with date-stamped originals of said Security Instruments. The Recipient shall,
at the Department's request, obtain and provide to the Department lien searches or attorney's title opinions.
ARTICLE 3
INCORPORATED DOCUMENTS
3.1 DOCUMENTS INCORPORATED BY REFERENCE. The Recipient shall comply with the terms and
conditions of the following documents which are hereby incorporated by this reference:
I. Master Contract Number 99-HM-135.
2. Funding Agreement Program Schedule, Exhibit A.
IN WITNESS WHEREOF, the parties have executed this Funding Agreement on the latest day and
year specified below.
RECIPIENT: Dubuque
BY:
Signature. Mayor
City of Dubuque
City Hall - 1305 Central Ave.
Dubuque, IA 5200 I
DATE:
IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT:
BY:
DATE:
LANE PALMER, DIVISION ADMINISTRATOR
HOME Agreement Format Approved November 3, 1997
Page 2
NAME OF RECIPIENT: City of Dubuque
AGREEMENT #:
99-HM-135-21
IOWA HOME PROGRAM
IOWA HOME PROGRAM SCHEDULE
EXHIBIT A
ACTIVITY #20: REHAB FOR RENTAL <$15,000
Activity will provide low-interest loans for rental rehabilitation to owners of rental property located in
Dubuque census tracts nos. 1,2,5,6,7.01,7.02.
ACTIVITY #20: REHAB FOR RENTAL <$15,000
Rehabilitation of twenty (20) rental units.
I
ACTIVITY
SOURCE OF FUNDS
ACTIVITY #20:
RENT AL REHAB
<$15,000
State - HOME
City of Dubuque
Owners contribution
ACTIVITY #90:
AMINISTRA TION
State - HOME
TOTAL ALL FUNDS
OTHER HOME FUNDS
PROJECT FEDERAL STATE
FUNDS FUNDS FUNDS
$200,000
S50,OOO
::>300,000
520,000
$350.000
$220,000
TOTAL
PROJECT
BUDGET
ELIGmLE
HOME MATCH
FUNDS
$200,000
$50,000
$300,000
$50,000
$20,000
$0
5570,000
550,000
IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT
HOME INVESTMENT PARTNERSHIP (HOME) PROGRAM
MASTER CONTRACT
HOME MASTER CONTRACT NUMBER:
CONTRACT EFFECTIVE DATE:
RECIPIENT:
99-HM-135
March 10, 1999
Dubuque
THIS HOME INVESTMENT PARTNERSHIP (HOME) PROGRAM MASTER CONTRACT is made by and between the
IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT, 200 East Grand Avenue, Des Moines, Iowa 50309 ("Department" or
"IDEO") and the Recipient.
WHEREAS, the Department is designated to receive, administer, and disburse HOME funds; and
WHEREAS, the Department is designated to receive, administer, and disburse an appropriation of State funds to serve as
match for the HOME funds; and
WHEREAS, the Department desires to disburse HOME funds to the Recipient for the purpose of promoting affordable
housing in Iowa, and achieving an adequate supply of affordable decent, safe, and sanitary housing for low-income Iowans;
NOW, THEREFORE, the Recipient accepts the terms and conditions set forth in this Master Contract for any and all
subsequent Funding Agreements funded with the funds identified herein. In consideration of the mutual promises contained in this
Master Contract and other good and valuable consideration, it is agreed as follows:
.
ARTICLE I
DEFINITIONS
As used in this Master Contract, the following terms shall apply:
1.1 ACT. "Act" means the National Affordable Housing Act of 1990 (NAHA) as amended (42 U.S.C. 5301 et seq.).
1.2 ACTIVITY. "Activity" means the detailed description of the work, services, and other accomplishments to be performed by
the Recipient as described in the Funding Agreement and the housing fund application approved by the Department. An Activity may
contain one or more Projects.
1.3 ALLOWABLE COSTS. "Allowable Costs" are those costs which are summarized in each Funding Agreement's Program
Schedule, Exhibit A; and consistent with federal regulations and guidelines applicable to the HOME program, especially as defined at
24 CFR 92.206.
1.4 CASH AND MANAGEMENT INFORMATION SYSTEM (C/MIS). "Cash and Management Information System
(C/MIS)" means the U.S. Department of Housing and Urban Development's computerized finance system which manages, disburses.
collects, and reports information on the use of HOME funds and which shall apply to fiscal management in accordance with 24 CFR
92.502.
1.5 COMMUNITY BUILDER PLAN. "Community Builder Plan" means an approved, local government adopted development
plan prepared in conformance with 261 Iowa Administrative Code, Chapter 80.
1.6 CONTRACT EXPIRATION DATE. "Contract Expiration Date" means the date the Master Contract ceases to be in force
and effect. The Contract expires upon the expiration date of all Funding Agreements covered under this Master Contract. The date is
.defined in Article 1.1 of the Funding Agreements.
Contract Number: 99-HM-135
Page 2 of 15
.1.7 FUNDING AGREEMENT. "Funding Agreement" means a separately executed document referenced in this Master
Contract which contains information, terms and conditions pertaining to each Activity or Project being funded with HOME funds.
1.8 FUNDING AGREEMENT EXPIRA TION DATE. "Funding Expiration Date" means the date a Funding Agreement ceases
to be in force and effect. A Funding Agreement expires upon the occurrence of one of the following: a) the Recipient complies with
the affordability requirements as provided in the Federal regulations at 24 CFR 92.252 or 24 CFR 92.254; and fulfills the conditions
and activities as of the last date specified in Article 1.1 of the Funding Agreement; or b) the Funding Agreement or Master Contract is
terminated by the Department due to any default under Article 7 of the Master Contract; or c) terminated in accordance with
provisions set forth in Sections 9 and 10 of the General Provisions, Attachment A of this Master Contract.
1.9 HOME. "HOME" means the HOME Investment Partnership Program created under the National Affordable Housing Act of
1990 (NAHA).
1.10 HOME FUNDS. "HOME FUNDS" means funds awarded to the State by the federal government under the HOME
Investment Partnership Program and matching State Funds as defined herein.
1.11 HUD. "HUD" means the U.S. Department of Housing and Urban Development.
1.12 MASTER CONTRACT OR CONTRACT. "Master Contract" or "Contract" means this Master Contract and all of the
notes, leases, assignments, mortgages, and similar documents referred to in this Master Contract and all other instruments or
documents executed by the Recipient or otherwise required in connection with this Master Contract, including the HOME Funding
Agreements and applications together with any related submittal documents.
1.13 PROJECT. "Project" means a site, an entire building, or two or more buildings within a four-block area under common
ownership, financing and management that are proposed to be assisted with HOME funds, (and other Project funds), as a single
undertaking. There may be one or several Projects within each Activity.
.1.14 STATE FUNDS. "State Funds" means the funding appropriated by the Iowa Legislature (1996 Iowa Acts, Senate File 2470,
Section 78, Subsection 3(g) for the purpose of providing match for the federal HOME Investment Partnership Program.
I. I 5 WORK COMPLETION DATE. "Work Completion Date" means the date identified in Exhibit A, Program Schedule of the
Funding Agreement upon which a Activity being funded through a HOME Funding Agreement shall reach its physical conclusion.
ARTICLE 2
FUNDING
2. I FUNDING SOURCE. The source of funding for Activities funded through this Master Contract and its Funding Agreements
is a federal appropriation for the HOME Program and funds appropriated by the Iowa Legislature as match to the HOME funds.
2.2 RECEIPT OF FUNDS. All payments under the Master Contract and the Funding Agreements are subject to receipt by the
Department of sufficient federal funds for the HOME program. The Department reserves the right to restrict direct access to funds
through the Cash and Information Management System (C/MIS). Any termination, reduction or delay of HOME funds to the
Department shall, at the option of the Department, result in the termination, reduction or delay of HOME funds to the Recipient.
2.3 PRIOR COSTS. No costs incurred prior to the Funding Agreement(s) Effective Date may be included as Activity costs for
the purposes of this Master Contract or its Funding Agreement(s).
2.4 DISBURSEMENT OF LESS THAN THE TOTAL AWARD AMOUNT. If the total amount of funding for a particular
Activity has not been requested by the Recipient within sixty (60) days after the Activity's work completion date, then the Department
shall be under no obligation for further disbursement for that Activity. Upon the submission ofa Payment Certification (Form HUD-
40099) for a particular Activity marked as final, any remaining funds for that Activity shall no longer be available.
2.5 ORDER OF DISBURSEMENT OF GRANT AND LOAN A WARD. Under a Funding Agreement which contains both
.rant and loan funds, the loan funds shall be considered disbursed first. with the grant funds disbursed after all loan funds have been
xhausted.
Document prepared by:Christine Gordon
HOME Master Format Approved: November 3, 1997
Contract Number: 99-HM-135
Page 3 of 15
.2.6 REVERSION OF ASSETS Upon the Funding Expiration Date, any Recipient who meets the definition of subrecipient
under 24 CFR 92.2, shall transfer to the Department any HOME funds on hand at the time of the expiration and any accounts
receivable attributable to the use of HOME funds.
ARTICLE 3
PROJECT REQUIREMENTS
3.1 AFFORDABILITY REQUIREMENTS. Any Activity assisted under this Master Contract and its Funding Agreements
shall meet the affordability requirements of24 CFR 92.252 or 92.254, as applicable. Noncompliance with the referenced affordability
requirements shall necessitate immediate repayment by the Recipient of all HOME funds invested by IDED in the Activity or Project.
Repayment shall be made either to the recipient's HOME Investment Account or the Department's HOME Investment Trust Account.
as determined by the Department.
3.2 PERFORMANCE TARGETS. On each Funding Agreement Work Completion Date, the Recipient shall have
accomplished the activities and performance targets as described in the Funding Agreement's Exhibit A, "Program Schedule", and as
further elaborated in the Funding Agreement's Approved Housing Fund Application.
3.3 CALCULATION OF PROJECT COMPLETION. The Department has the final authority to assess whether the Recipient
has met their performance targets at the Work Completion Date. The Department shall determine completion according to the
performance targets set forth in the Funding Agreement's Exhibit A, "Program Schedule". The Department reserves the right to
monitor and measure at any time during the Master Contract term the achievement of the performance targets.
3.4 ENFORCEMENT PROVISIONS. The following means of enforcement shall apply to each identified form of Activity
assistance, and shall be binding on the Recipient when a Funding Agreement is executed for that form of assistance. Additional
provisions may be included as a part of a Funding Agreement.
.
(a) OWNER-OCCUPIED REHABILITATION. Any owner-occupied property assisted with HOME funds shall have
placed upon it recorded security instruments, as approved by the Department, protecting the investment for the benefit of
lower-income persons in accordance with 24 CFR 92.254(b).
(b) RENTAL HOUSING. Any rental housing property assisted with HOME funds shall have placed upon it recorded
security instruments, as approved by the Department. insuring compliance with the occupancy restrictions of24 CFR 92.216
and the rent restrictions of 24 CFR 92.252, with the effective term of said instrument in accordance with
24 CFR 92.252(a)(5).
(c) HOMEOWNERSHIP. Any property assisted under the homeownership activity shall have placed upon it recorded
security instruments, as approved by the Department, insuring compliance with 24 CFR 92.254 (a)(4)(I) or 24 CFR 92.254
(a)(4)(ii), with the effective term of said instrument in accordance with 24 CFR 92.252 (a)(4).
(d) TENANT BASED RENTAL ASSISTANCE. Any Tenant Based Rental Assistance project assisted with HOME funds
shall comply with the occupancy restriction of 24 CFR 92. 216.
3.5 HOUSING QUALITY STANDARDS. All housing assisted with HOME funds shall be maintained in compliance with the
property standards defined in 24 CFR 92.251, and any locally enforceable housing standards, laws and codes of the recipient, as
affected by the Activity location.
3.6 PROJECT REQUIREMENTS. All Activities shall adhere to the requirements found at Subpart F of24 CFR Part 92, as
applicable in accordance with the type of Activity assisted.
3.7 AFFIRMATIVE MARKETING. The Recipient shall comply with the affirmative marketing responsibilities in accordance
with 24 CFR 92.351, as applicable.
3.8 RELIGIOUS ORGANIZATIONS. Religious organizations shall follow the conditions found at 24 CFR 92.257 for the use
ef HOME funds.
Document prepared by:Christine Gordon
HOME Master Format Approved: November 3,1997
Contract Number: 99-HM-135
Page 4 of 15
.,9 ADMINISTRA TION. This Master Contract shall be administered in accordance with 261 Iowa Administrative Code,
Chapter 25 and all applicable State and Federal laws and regulations, including the Iowa HOME Management Guide, which has been
distributed by the Department to the Recipient. The uniform administrative requirements identified at 24 CFR 92.505 shall apply to
all Recipients.
3.10 ANNUAL INCOME CERTIFICATIONS, Recipients of HOME funds for tenant based rental assistance and rental housing
shall maintain records of determination of each tenant income eligibility and eligibility as a family at the time they receive the
assistance. The Recipient shall reexamine family income, size and composition at least annually, during the term of affordability,
3.11 PROPERTY STANDARDS CERTIFICATIONS. Recipients of HOME funds for rental housing shall maintain records
indicating that an inspection of the rental housing was performed and at a minimum meets HUD Section 8 Housing Quality Standards
and applicable local housing standards. For Rental Projects with 25 or less units, an inspection shall be conducted biennially. For
Rental Projects with more than 25 units, an inspection shall be conducted annually.
ARTICLE 4
USE OF FUNDS
4.1 GENERAL. The Recipient shall perform in a satisfactory and proper manner, as reasonably determined by the Department,
the work activities and services as written and described in the each approved Housing Fund Application (Exhibit B to the Funding
Agreement) as summarized in the Recipient's approved Funding Agreement HOME Program Schedule (Exhibit A to the Funding
Agreement).
4.2 BUDGET REVISIONS. Activity budget revisions which would result in changes in Other Project funds shall be subject to
approval of the Department through the contract amendment process. In no instance shall the Department be obligated to provide
additional HOME funds for an activity or project if the Recipient finds total costs will exceed those identified in the Funding
.greement. Budget revisions shall be compatible with the terms ofthis Master Contract and each Funding Agreement and of such a
ature as to qualify as an allowable cost. Budget revisions requested during the final ninety (90) days prior to the Work Completion
Date of each Funding Agreement will be approved by the Department only if it determines that the revisions are necessary to complete
activities and are allowable. The submission of a final Payment Certification shall be construed to mean the Recipient has completed
work for that Activity, and that funds shall no longer be available to that particular Activity.
4.3 ADMINISTRA TIVE COSTS. HOME funds may be used for costs of administering the HOME program(s) funded under
this Contract in accordance with federal regulations and state rules. Only administrative costs incurred after the effective date of the
Funding Agreement offering the administrative funds are eligible for HOME fund reimbursement. The amount of HOME funds
which may be used for this purpose are limited to the amounts specifically identified as administrative funds in the HOME Funding
Agreement budget.
4.4 PROGRAM INCOME - PRIOR TO WORK COMPLETION DATE. Proceeds received by the Recipient from principal
and interest payments on a HOME investment loan, or other proceeds received as a result of a HOME investment, if received prior to
the Funding Agreement Work Completion Date, shall be expended prior to requesting additional HOME investment funds.
4.5 PROGRAM INCOME - AFTER WORK COMPLETION DATE. The Recipient may not retain program income
received after the Funding Agreement Work Completion Date unless a program income reuse plan is filed with and approved by the
Department within 90 days of the HOME Contract Effective Date.
ARTICLE 5
CONDITIONS TO DISBURSEMENT OF FUNDS
Unless and until the following conditions have been satisfied, the Department shall be under no obligation to disburse to the Recipient
any amounts under the Funding Agreements issued under this Master Contract:
5.1 MASTER CONTRACT EXECUTED. The Master Contract shall have been properly executed and, where required,
eCknOWledged.
Document prepared by:Christine Gordon
HOME Master Format Approved: November 3, 1997
Contract Number: 99-HM-135
Page 5 of 15
.5.2 FUNDING AGREEMENT EXECUTED. Each Funding Agreement shall have been properly executed and, where required.
acknowledged.
5.3 FINANCIAL COMMITMENTS. The Recipient shall have submitted an executed agreement from each source of funds
which commits to the financial involvement identified in that Funding Agreement's Exhibit A "Program Schedule" and shall have
received the Department's approval of these documents. Each agreement shall include the amount, terms, estimated time of
contribution, and conditions of the financial commitment, as well as any schedules.
5.4 RECORDING. The Recipient shall have properly recorded in the appropriate office of the Recorder of Deeds and/or the
Secretary of State any mortgage, security agreement, financing statement or similar document required by the Department under this
Master Contract or the Funding Agreements, with all recording charges paid.
5.5 COMPLIANCE WITH ENVIRONMENTAL REOUlREMENTS. Funds shall not be released under this Master Contract
or any Funding Agreement until the Recipient has satisfied the environmental review and release of funds requirements set forth in 24
CFR Parts 50 and 58, as summarized in the Iowa HOME Management Guide.
5.6 PERMITS AND LICENSES. The Department reserves the right to withhold funds until the Department has reviewed and
approved all material, such as permits or licenses from other state or federal agencies, which may be required prior to Activity
commencement.
5.7 ADMINISTRATIVE PLAN. The Recipient shall establish a written Administrative Plan for each Funding Agreement. The
recipient's Administrative Plan shall be on file at the Department within one hundred twenty (120) days of the effective date of the
Funding Agreement it implements. The release of HOME funds for the funded activity shall be contingent upon the Department's
review and approval of the recipient's Administrative Plan and upon satisfactory evidence that the Administrative Plan has been
adopted by the recipient following the Department's approval.
_:.8 REQUEST FOR DISBURSEMENT. The Recipient shall request HOME funds in the format specified by the Department
~nly as needed for payment of eligible costs and shall not have HOME fund proceeds on hand for a period of longer than ten (10)
days, after which time any surplus amount shall be returned to the Department.
5.9 INTEREST. Any interest earned on HOME funds within 10 days of receipt shall be treated as program income, as
summarized in Article 4.4. Any interest earned after 10 days shall be remitted at least quarterly to IDED.
5.10 METHOD OF PAYMENT. The Recipient shall draw funds directly from the Department in accordance with procedures
identified in the Iowa HOME Management Guide. The Recipient shall use forms consistent with those used by HUD in the operation
of the Cash and Information Management System.
5.11 AUTHORITY. The Recipient shall have submitted to the Department a Resolution of the governing board authorizing the
execution and delivery of this Master Contract and any Funding Agreements and Notes and borrowing, and such other papers as the
Department may reasonably request; and specifying the officer(s) authorized to execute the documents and bind the Recipient
organization.
5.12 CERTIFICATION OF ACCOUNTING SYSTEM. In compliance with Iowa Code section 11.36, Private Agencies
awarded grant funds in excess of one hundred fifty thousand dollars shall have submitted to the Department certification from the
State Auditor that the Recipient has an accounting system adequate to effect compliance with the terms and conditions of the grant or
contract.
5.13 RESIDENTIAL ANTI/DISPLACEMENT AND RELOCATION ASSISTANCE PLAN APPROVAL. The Department,
prior to release of funds under this Contract, shall review and approve the Recipient's Residential Anti/Displacement and Relocation
Assistance Plan, consistent with the requirements of Section 104(d) of the Housing and Community Development Act of 1974, as
amended.
.
Document prepared by:Christine Gordon
HOME Master Format Approved: November 3, 1991
Contract Number: 99-HM-135
Page 6 of 15
ARTICLE 6
REPRESENTATIONS AND WARRANTIES OF RECIPIENT
To induce the Department to make the Award referred to in this Master Contract and subsequent Funding Agreements executed under
this Master Contract, the Recipient represents, covenants and warrants that:
6.1 AUTHORITY. The Recipient is duly authorized and empowered to execute and deliver the Master Contract and the
subsequent Funding Agreements. All action on the Recipient's part, such as appropriate resolution of its governing board for the
execution and delivery of the Master Contract, has been effectively taken and will be taken upon execution and delivery of each
Funding Agreement. If the Recipient is other than a unit of general local government of the State of Iowa, the Recipient is a
corporation duly organized and validly existing under the laws of the State of Iowa and is in good standing, and has complied with all
applicable laws of the State ofIowa. If the Recipient is accepting the funds as a Community Housing Development Organization, the
Recipient is organized and operating in accordance with the regulations at 24 CFR part 92.
6.2 FINANCIAL INFORMATION. All financial statements and related materials concerning each Activity provided to the
Department are true and correct in all material respects and completely and accurately represent the subject matter thereof as of the
effective date of the statements and related materials, and no material adverse change has occurred since that date.
6.3 APPLICATION. The contents of the application the Recipient submitted to the Department for approval for HOME
funding is a complete and accurate representation of the Activity as of the date of submission and there has been no material adverse
change in the organization, operation, or key personnel of the Recipient since the date the Recipient submitted its Housing Fund
Application to the Department.
6.4 CLAIMS AND PROCEEDINGS. There are no actions, lawsuits or proceedings pending or, to the knowledge of the
Recipient, threatened against the Recipient affecting in any manner whatsoever their rights to execute the Master Contract or
subsequent Funding Agreements or the ability of the Recipient to make the payments required under the Master Contract and Funding
. Agreements, or to otherwise comply with the obligations of the Recipient contained under the Master Contract and Funding
Agreements. There are no actions, lawsuits or proceedings at law or in equity, or before any governmental or administrative authority
pending or, to the knowledge of the Recipient, threatened against or affecting the Recipient or any property involved in the Activities.
6.5 PRIOR AGREEMENTS. The Recipient has not entered into any verbal or written contracts, agreements or arrangements of
any kind which are inconsistent with the Master Contract or Funding Agreements.
6.6 EFFECTIVE DATE. The covenants, warranties and representations of this Article are made as of the Effective Date of this
Master Contract and shall be deemed to be renewed and restated by the Recipient at the time of execution of each subsequent Funding
Agreement and at the time of each advance or request for disbursement of HOME funds.
ARTICLE 7
COVENANTS OF THE RECIPIENT
7.1 AFFIRMA TIVE COVENANTS. Until the Activity has been closed out, audited (as required), and approved by the
Department, all loans repaid, and affordability standards maintained for the appropriate length of time, the Recipient covenants with
the Department that:
(a) WORK AND SERVICES. The Recipient shall perfonn work and services detailed in each approved Housing Fund
Application by the Funding Agreement Work Completion Date.
(b) REPORTS. The Recipient shall prepare, review and sign the requests and reports as specified below, together with any
reports required in any Funding Agreement, in the fonn and content specified by the Department. The requests and reports
shall be submitted to the Department by the 15th of the month when due, and for final reports, within sixty (60) days after the
Funding Expiration Date. The Recipient shall review all reimbursement requests and verify that claimed expenditures are
. allowable costs. The Recipient shall maintain documentation adequate to support the claimed costs.
REPORT DUE DATE
Document prepared by:Christine Gordon
HOME Master Fonnat Approved: November 3, 1997
Contract Number: 99-HM-135
Page 7 of 15
. Proiect Set-1m Reports
Form HUD-40094 or -40095
As needed
Payment Certification
Form HUD-40099, as modified by IDED
As needed
Ouarterly Performance Reports
and one copy)
15th of the month following the end of each calendar quarter. (original
Final Payment Certification
Form HUD-40099, as modified by IDED
Upon completion of activity.
Proiect Completion Report
Form HUD-40096 or -40097 or 40096-M
Within 60 days of drawing final payment.
Audit Report
Within 30 days of Audit Completion.
Annual Certification Form, as required by
92.252(b) and 92.504 (e)(1).
October 31, following the Work Completion Date,
throughout the term of affordability.
The Department reserves the right to require more frequent submission of the Quarterly Report than as shown above if, in the opinion
of the Department, more frequent submissions would help improve the Recipient's HOME program.
(c)
RECORDS. The Recipient shall adhere to the following record requirements:
.
(i) REQUIRED RECORDS. The Recipient shall maintain books, records, documents and other evidence
pertaining to all costs and expenses incurred and revenues received under this Master Contract and its Funding
Agreements in sufficient detail to reflect all costs, direct and indirect, of labor, materials, equipment, supplies,
services and other costs and expenses of whatever nature, for which payment is claimed under this Master Contract
and its Funding Agreements. The Recipient shall maintain books, records and documents in sufficient detail to
demonstrate compliance with 24 CFR 92.508(a)(2),(a)(3),(a)(5), and (a)(6), the Master Contract and its Funding
Agreements.
(ii) RECORD RETENTION REQUIREMENTS. The Recipient shall maintain records for a period of five (5)
years beyond the date upon which the affordability requirements applicable under 24 CFR 92.252 and
24 CFR 92.254 expire or the Funding Agreement Work Completion Date if there are no long term affordability
requirements applicable. Records for non-expendable property acquired under this Master Contract and its Funding
Agreements shall be retained for a five (5) year period after the final disposition of property. Records shall be
retained beyond the prescribed period if any litigation or audit is begun or if a claim is instituted involving the this
Master Contract and its Funding Agreements covered by the records. In these instances, the records shall be
retained until the litigation, audit or claim has been fmally resolved or until the end of the regular period, whichever
is later. Records covering displacements and acquisition must be retained for at least three years after the date by
which all persons displaced from the property and all persons whose property is acquired for the Activity have
received the final payment to which they are entitled in accordance with 24 CFR 92.353.
(d) ACCESS TO RECORDS/INSPECTIONS. The Recipient shall, without prior notice and during regular business hours,
permit HUD or its representatives, the General Accounting Office or its representatives, and the Department, its
representatives or the State Auditor to examine, audit and/or copy (I) any plans and work details pertaining to any Activity,
(H) all of the Recipient's books, records and accounts, and (Hi) all other documentation or materials related to this Master
Contract and its Funding Agreements; the Recipient shall provide proper facilities for making such examination and/or
inspection.
.
(e) USE OF HOME FUNDS. The Recipient shall expend funds received under this Master Contract and its Funding
Agreements only for the purposes and activities described in its approved Housing Fund Application, this Master Contract
and its Funding Agreements, and as approved by the Department.
Document prepared by:Christine Gordon
HOME Master Format Approved: November 3, 1997
Contract Number: 99-HM-135
Page 8 of 15
(f) DOCUMENTATION. The Recipient shall deliver to the Department, upon request, (I) copies of all contracts or
agreements relating to each Activity, (ii) invoices, receipts, statements or vouchers relating to each Activity, (iii) a list of all
unpaid bills for labor and materials in connection with each Activity, and (iv) budgets and revisions showing estimated
Activity costs and funds required at any given time to complete and pay for each Activity.
(g) NOTICE OF PROCEEDINGS. The Recipient shall promptly notify the Department of the initiation of any claims,
lawsuits or proceedings brought against the Recipient.
(h) INDEMNIFICATION. The Recipient shall indemnify and hold harmless the Department, its officers and employees
from and against any and all losses.
(i) NOTICE TO DEPARTMENT. In the event the Recipient becomes aware of any material alteration in an Activity
funded under this Master Contract, initiation of any investigation or proceeding involving an Activity funded under this
Master Contract, or any other similar occurrence, the Recipient shall promptly notify the Department.
U) PROJECT FEES. The Recipient shall ensure the prompt payment of all appraisal, survey, recording, title, license,
permit and other fees and expenses incurred incident to the funding award.
(k) CERTIFICATIONS AND ASSURANCES. The Recipient certifies and assures that the Activities funded under this
Master Contract will be conducted and administered in compliance with all applicable federal and state laws, regulations and
orders. Certain statutes are expressly made applicable to activities assisted under the Act by the Act itself, while other laws
not referred to in the Act may be applicable to such activities by their own terms. The Recipient certifies and assures
compliance with the applicable orders, laws and implementing regulations, including but not limited to, the following:
(i) The National Affordable Housing Act of 1990; and Department of Housing and Urban Development
regulations which implement the HOME Program at 24 CFR 92.
(ii) Financial Management guidelines issued by the U.S. Office of Management and Budget, OMB Circular A-
122 ("Cost Principles for Nonprofit Organizations"); OMB Circular A-87 ("Principles for Determining Costs
Applicable to Grants and Contracts with State, Local and Federally recognized Indian Tribal Governments"); OMB
Circular A-133 ("Single Audit Act Amendment of 1996"): Attachment B, Attachment F, paragraph 2 of Attachment
H, and Attachment 0; and the following requirements of the Code of Federal Regulations, 24 CFR Part 85
("Administrative Requirements for Grants and Cooperative Agreements to State, Local and Federally Recognized
Indian Tribal Governments"): 99 85.6, 85.12, 85.20, 85.22, 85.26, 85.35, 85.36, 85.44, 85.51, and 85.52.
(iii) Title VI of the Civil Rights Act of 1964 as amended (Public Law 88-352; 42 U.S.C. 2000d et seq.); Title
VIII of the Civil Rights Act of 1968 as amended (Public Law 90-284; 42 U.S.c. 3601 et seq.); the Iowa Civil Rights
Act of 1965; Iowa Executive Order # 15, dated April 2. 1973, and Executive Order #34, dated July 22, 1988;
Presidential Executive Order 11063, as amended by Executive Order 12259; Presidential Executive Order 11246, as
amended; Section 504 of the Rehabilitation Act of 1973 as amended (29 U.S.C. 794); the Americans with
Disabilities Act, as applicable. (P. L. 101-336,42 U.S.c. 12101-12213; the Age Discrimination Act of 1975 as
amended (42 U.S.c. 6101 et seq.); and related Civil Rights and Equal Opportunity statutes; and regulations which
implement these laws.
(iv) Fair Housing Act, Public Law 90-284. The Public Fair Housing Act is part of Title VIII of the Civil Rights
Act of 1968 as amended (42 V.S.C. 3601 et seq.); Section 3 of the Housing and Urban Development Act of 1968 as
amended (12 V.S.C. 170Iu); and regulations which implement these laws.
(v) Executive Orders 11625, 12432, and 12138 as amended, to encourage the use of minority and women's
business enterprises in connection with activities funded under the program.
(vi) Davis-Bacon Act, as amended (40 U.S.C. 276a - 276a-5), where applicable under 24 CFR 92.354; Contract
Work Hours and Safety Standards Act (40 V.S.C. 327 et seq.); the Copeland Anti-Kickback Act (18 V.S.C. 874);
the Department of Defense Reauthorization Act of 1986; and regulations which implement these laws.
Document prepared by:Christine Gordon
HOME Master Format Approved: November 3, 1997
Contract Number: 99-HM-135
Page 9 of 15
.
(vii)
Lead Based Paint Poisoning Prevention Act (42 U.S.C. 4821 - 4846) and implementing regulations.
(viii)
Fair Labor Standards Act and implementing regulations.
(ix) Unifonn Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, (URA)(42
U.S.C. 4601 - 4655) and implementing regulations.
(x) National Environmental Policy Act of 1969 and implementing regulations.
(xi) Government-wide Restriction on Lobbying Certification [Section 319 of Public Law 10 1-121] and
implementing regulations.
(xii) Hatch Act (regarding political partisan activity and federaIly funded activities) and implementing
regulations.
(xiii) Administrative rules adopted by the Iowa Department of Economic Development, 261 Iowa Administrative
Code, chapter 25.
(xiv) Financial and Program Management guidelines issued by the Iowa Department of Economic Development:
the Iowa HOME Management Guide, the IDED Audit Guide.
.
(I) MAINTENANCE OF PROJECT PROPERTY AND INSURANCE. The Recipient and any of its subrecipients shall
maintain Activity property(s) in good repair and condition, ordinary wear and tear excepted, and shaIl not suffer or commit
waste or damage upon the property. The Recipient or its subrecipient shaIl pay for and maintain insurance as is customary in
their industry. This insurance shall be in an amount not less than the full insurable value of the property. A subrecipient of
the Recipient shaIl name the Recipient and Department as a mortgagee and/or an additional loss payee, as appropriate, and
the Recipient shaIl name the Department as a mortgagee and/or and additional loss payee, as appropriate.
(m) MEANS OF ENFORCEMENT. The Recipient shaIl ensure the appropriate enforcement provisions detailed at Article
3.4 are included for each Activity funded with HOME funds, as appropriate.
7.2 NEGATIVE COVENANTS. During the term of this Master Contract and Funding Agreements entered into hereunder, the
Recipient covenants with the Department that it shaIl not, without the prior written disclosure to and prior written consent of the
Department, directly or indirectly:
(a) ASSIGNMENT. Assign, waive or transfer any of its rights. powers, duties or obligations under this Master Contract or
any Funding Agreements.
(b) PROPERTY/COLLA TERAL. Sell, transfer, convey, assign, encumber or otherwise dispose of any of the real property
or other coIlateral securing any loan or other investment instrument produced under this Master Contract or its Funding
Agreements.
(c) RESTRICTIONS. Place or permit any restrictions, covenants or any similar limitations on the real property and/or other
coIlateral securing any loan or other investment instrument produced under this Master Contract or its Funding Agreements,
other than as expressly permitted or required by the Master Contract or its Funding Agreements.
(d) REMOVAL OF COLLATERAL. Remove from an Activity site or the State all or any part of the coIlateral securing
any loan or other investment instrument produced under this Master Contract or its Funding Agreement.
.
(e) BUSINESS OWNERSHIP. If the Recipient is other than a local government, materiaIly change the ownership,
structure or control of the business affecting any Activity funded under this Master Contract, including but not limited to,
entering into any merger or consolidation with any person, finn or corporation or permitting substantial distribution,
liquidation or other disposal of business assets directly associated with an Activity. Changes in the business ownership,
structure or control which do not materially affect any Activity shall require forty-five (45) days prior written notice of the
Department, but not written consent of, the Department. The materiality of the change and whether or not the change affects
any Activity funded under this Master Contract shaIl be determined by the Department.
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(f) ADMINISTRA TION. Cease administering the activities funded under this Master Contract and subsequent Funding
Agreements.
ARTICLE 8
DEFAULT AND REMEDIES
8.1 EVENTS OF DEFAULT. Any of the following shall constitute an Event of Default under this Master Contract or a Funding
Agreement:
(a) MATERIAL MISREPRESENTATION. If at any time any representation, warranty or statement made or furnished to
the Department by, or on behalf of the Recipient in connection with this Master Contract or its Funding Agreements, or to
induce the Department to make an award to the Recipient shall be determined by the Department to be incorrect, false,
misleading or erroneous in any material respect when made or furnished and shall not have been remedied to the
Department's satisfaction within thirty (30) days after written notice by the Department is given to the Recipient.
(b) NONPA YMENT. If the Recipient fails to make a payment when due under the terms of this Master Contract or its
Funding Agreements within thirty (30) days following written notice of such overdue payment is given to the Recipient by
the Department.
(c) NONCOMPLIANCE. If there is a failure by the Recipient to comply with any of the covenants, terms or conditions
contained in this Master Contract, its Funding Agreements or Security Instruments executed pursuant to the Master Contract
or Funding Agreements.
(d) WORK COMPLETION DATE. If an Activity, in the sole reasonable judgment of the Department, is not completed on
or before Funding Agreement Expiration Date, as specified in Article 1.1 of its Funding Agreement.
.
(e) LACK OF AFFORDABILITY. If a Activity fails to maintain affordability of the HOME-assisted housing for the
periods described in 24 CFR 92.252 or 24 CFR 92.254.
(f) MISSPENDING. If the Recipient expends HOME fund proceeds for purposes not described in the Housing Fund
Application, this Master Contract or its Funding Agreements, or as authorized by the Department.
(g) INSURANCE. If loss, theft, damage or destruction of any substantial portion of the property of the Recipient occurs for
which there is either no insurance coverage or for which, in the opinion of the Department, there is insufficient insurance
coverage.
(h) BUSINESS CHANGES. If there is a material change in the ownership, structure or control of the Recipient, if the
Recipient is other than a unit of local government, which occurs without the prior written disclosure to and if required,
written permission of the Department.
(i) ABANDONMENT. If there is an abandonment of the Activity(ies) assisted under the Funding Agreement.
G) INSECURITY. The Department shall deem itself insecure in good faith and reasonably believes, after consideration of
all the facts and circumstances then existing, that the prospect of payment and satisfaction of the obligations under this
Master Contract and its Funding Agreements, or the performance of or observance of the covenants in this Master Contract
and its Funding Agreements, or the value of its collateral is or will be materially impaired.
(k) FAILURE TO PROVIDE ENFORCEMENT. If the Recipient has failed to provide an appropriate means of
enforcement for an Activity.
8.2 NOTICE OF DEFAULT. The Department shall issue a written notice of default providing therein a fifteen (IS) day period
in which the Recipient shall have an opportunity to cure, provided that cure is possible and feasible.
..3 REMEDIES UPON DEFAULT. If, after opportunity to cure, the default remains, the Department shall have the right, in
addition to any rights and remedies available to it to do one or more of the following:
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Contract Number: 99-HM-135
Page II of 15
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(a) exercise any remedy provided by law,
(b) Upon the happening of any Event of Default, the Department shall have the right, in addition to any rights and remedies
available to it under any of the Security Instruments, to require immediate repayment of the full amount of funds disbursed to
the Recipient under this Master Contract or any Funding Agreement plus interest without presentment, demand, protest,
notice of protest, notice of intention to accelerate or other notice of any kind, all of which are expressly waived by the
Recipient.
8.3 FAILURE TO MEET PERFORMANCE TARGETS. If the Recipient is determined by the Department to be in default of
this Master Contract or its Funding Agreements due to meeting less than one hundred percent (100%) of its Performance Targets, the
Department may require full repayment or, at its discretion, the Department may permit repayment of HOME fund proceeds which
allows partial credit for the performance targets which have been met, or the Department may permit other remedies that the
Department determines to be appropriate. In the event of repayments for a Funding Agreement which contains both a grant and a
loan, the repayments shall first be made of funds derived from the grant portion of the Funding Agreement. If there are insufficient
funds to cover the default repayment from the grant portion, the Department may require repayment of some or all of the loan. If the
Funding Agreement specifies the activity for which repayment is being required, the repayment will be considered to be a repayment
ofthat activity's funds, in the same manner as herein described.
ARTICLE 9
INCORPORA TED DOCUMENTS
9.1 DOCUMENTS INCORPORATED BY REFERENCE. The Recipient shall comply with the terms and conditions of the
following documents which are hereby incorporated by reference:
I. Funding Agreements executed referencing this Master Contract, dated upon execution.
.
2.
Attachment A, "HOME Program General Provisions", dated November 3, 1997.
9.3 ORDER OF PRIORITY. In the event ofa conflict between documents of this Master Contract, the following order of
priority shall govern:
I. Articles I through 10 herein.
2. Funding Agreements referencing this Master Contract.
3. Attachment A, "HOME Program General Provisions", dated November 3, 1997.
ARTICLE 10
MISCELLANEOUS
10.1 BINDING EFFECT. This Master Contract and its Funding Agreements shall be binding upon and shall inure to the benefit
of the Department and Recipient and their respective successors, legal representatives and assigns. The obligations, covenants,
warranties, acknowledgments, waivers, agreements, terms, provisions and conditions of this Master Contract shall be jointly and
severally enforceable against the parties to this Master Contract.
I 0.2 SURVIVAL OF CONTRACT. If any portion of this Master Contract or its Funding Agreements is held to be invalid or
unenforceable, the remainder shall be valid and enforceable. The provisions of this Master Contract and its Funding Agreements shall
survive the execution of all instruments herein mentioned and shall continue in full force until the Activity is completed as determined
by the Department.
10.3 GOVERNING LAW. This Master Contract and its Funding Agreements shall be interpreted in accordance with the laws of
the State of Iowa, and any action relating to the Master Contract and its Funding Agreements shall only be commenced in the Iowa
.District Court for Polk County or the United States District Court for the Southern District of Iowa.
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. 10.4 NOTICES. Whenever this Master Contract or its Funding Agreements requires or permits any notice or written request by
one party to another, it shall be in writing, enclosed in an envelope, addressed to the party to be notified at the address heretofore
stated (or at such other address as may have been designated by written notice), properly stamped, sealed and deposited in the United
States Mail. Any such notice given hereunder shall be deemed delivered upon the earlier of actual receipt or two (2) business days
after posting. The Department may rely on the address of the Recipient set forth heretofore, as modified from time to time, as being
the address of the Recipient.
10.5 WAIVERS. No waiver by the Department of any default hereunder shall operate as a waiver of any other default or of the
same default on any future occasion. No delay on the part of the Department in exercising any right or remedy hereunder shall operate
as a waiver thereof. No single or partial exercise of any right or remedy by the Department shall preclude future exercise thereof or
the exercise of any other right or remedy.
10.6 LIMITATION. It is agreed by the Recipient that the Department shall not, under any circumstances, be obligated financially
under this Master Contract and its Funding Agreements except to disburse funds according to the terms ofthe Master Contract.
10.7 HEADINGS. The headings in this Master Contract and its Funding Agreements are intended solely for convenience of
reference and shall be given no effect in the construction and interpretation of this Master Contract or its Funding Agreements.
10.8 INTEGRATION. This Master Contract and its Funding Agreements contains the entire understanding between the
Recipient and the Department and any representations that may have been made before or after the signing of this Master Contract and
its Funding Agreements, which are not contained herein, are nonbinding, void and of no effect. None of the parties have relied on any
such prior representation in entering into this Master Contract or its Funding Agreements.
1 0.9 COUNTERPARTS. This Master Contract and its Funding Agreements may be executed in any number of counterparts,
each of which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument.
10.10 NONRECOURSE.
. IN WITNESS WHEREOF, the parties have executed this Master Contract on the latest day and year specified below.
BY:
RECIPIENT: Dubuque
Mayor
City of Dubuque
City Hall- 1305 Central Ave.
Dubuque, IA 52001
IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT:
BY:
LANE PALMER, DIVISION ADMINISTRATOR
.
Document prepared by:Christine Gordon
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Contract Number: 99-HM-135
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and proper costs which the Recipient could not reasonably avoid during the period of suspension provided the Department
concludes that such costs meet the provisions ofHUD regulations issued pursuant to OMB Circular A-87.
7.0 TERMINATION.
(a) FOR CAUSE. The Department may terminate the Contract or any Funding Agreement in whole, or in part,
whenever the Department determines that the Recipient has failed to comply with the terms and conditions of the
Contract.
(b) FOR CONVENIENCE. The Department or the Recipient may terminate the Contract or any Funding
Agreement in whole, or in part, when all parties agree that the continuation of the Funding Agreement activity would
not produce beneficial results commensurate with the future disbursement of funds.
(c) DUE TO REDUCTION OR TERMINATION OF HOME. At the discretion of the Department, the Contract
or any Funding Agreement may be terminated in whole, or in part, if there is a reduction or termination of HOME
funds to the State.
(d) DUE TO FAILURE TO PERFORM. At the discretion of the Department, the Contract or any Funding
Agreement may be terminated in whole, or in part, if the recipient is unable to file project set-up forms to commit
funds within 180 days of the signing of the contract.
8.0
PROCEDURES UPON TERMINATION.
(a) NOTICE. The Department shall provide written notice to the Recipient of the decision to terminate, the
reason(s) for the termination, and the effective date of the termination. If there is a partial termination due to a
reduction in funding, the notice will set forth the change in funding and the changes in the approved budget. The
Recipient shall not incur new obligations beyond the effective date and shall cancel as many outstanding obligations
as possible. The Department's share of noncancellable obligations which the Department determines were properly
incurred prior to notice of cancellation will be allowable costs.
(b) RIGHTS IN PRODUCTS. All finished and unfinished documents, data, reports or other material prepared by
the Recipient under the Contract shall, at the Department's option, become the property of the Department.
(c) RETURN OF FUNDS. The Recipient shall return to the Department all unencumbered funds within one week
of receipt of the notice of termination. Upon notice by, and at the discretion of, the Department, the Recipient shall
return to the account identified by the Department all HOME funds which were drawn against the Funding Agreement
activity. Any costs previously paid by the Department which are subsequently determined to be unallowable through
audit, monitoring, or closeout procedures shall be returned to the Department within thirty (30) days of the date of the
determination of the disallowance.
9.0 ENFORCEMENT EXPENSES. The Recipient shall pay upon demand any and all reasonable fees and expenses of
the Department, including the fees and expenses of their anorneys, experts and agents, in connection with the exercise or
enforcement of any of the rights of the Department under th is Contract or any Funding Agreement.
10.0 INDEMNIFICA TION. The Recipient shall indemnify and hold harmless the Department, its officers and
employees, from and against any and all losses, including losses accruing or resulting from any and all claims subcontractors,
laborers and any other person, firm or corporation furnishing or supplying work, services, materials or supplies in connection
with the performance of this Contract and its Funding Agreements, and from any and all claims and losses accruing or resulting
to any person, firm or corporation who may be injured or damaged by the Recipient in the performance of this Funding
Agreement.
11.0 CONFLICT OF INTEREST. The Conflict of Interest provisions found at 24 CFR 92.356 shall apply in the conduct
ofthe HOME program. In the procurement of property and services by the Recipient, the conflict of interest provisions in 24
CFR 85.36 and OMB Circular A-IIO, as appropriate, apply. In all cases not governed by 24 CFR 85.36 or OMB Circular A-
110, the provisions found at 24 CFR 92.356 apply. Chapter 68B, Code ofIowa, the "Iowa Public Officials Act", shall be
adhered to by the Recipient, its officials and employees.
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General Provisions
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12.0 USE OF DEBARRED. SUSPENDED. OR INELIGIBLE CONTRACTORS OR SUBRECIPIENTS. HOME
funds shall not be used directly or indirectly to employ, award contracts to, or otherwise engage the service of, or fund any
contractor or subrecipient during any period of debarment, suspension, or placement in ineligible status under the provisions of
24 CFR Part 24 or any applicable law or regulation ofthe Department of Labor.
13.0 EOUAL OPPORTUNITY AND FAIR HOUSING. The Recipient shall comply with the provisions of
24 CFR 92.350 concerning Equal Opportunity and Fair Housing provisions of Federal law. The Recipient shall comply with
the provisions offederal, state and local law and regulations to insure that no employee or applicant for employment is
discriminated against because of race, religion, color, age, sex, national origin, or disability.
14.0 CERTIFICATION REGARDING GOVERNMENT-WIDE RESTRICTION ON LOBBYING. The Recipient
certifies, to the best of his or her knowledge and belief, that:
(a) No Federal appropriated funds have been paid or will be paid, by or on behalf of the Recipient, 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, or an
employee of a Member of congress in connection with this Federal contract, grant, loan, or cooperative agreement, the
Recipient shall complete and submit Standard Form-LLL, "Disclosure Form to Report Federal Lobbying" in
accordance with its instruction.
.
(c) The Recipient shall require that the language of this certification be included in the award documents for all
subawards at all tiers (including subcontracts, subgrants. and contracts under grants, loans, and cooperative
agreements) and that all subrecipients 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. 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.
15.0 INCLUSION IN SUBCONTRACTS The Recipient will include the provisions of the preceding paragraphs of
Section 13.0 and Section 14.0 in every subcontract unless exempt by the State ofIowa, and said provisions will be binding on
each subcontractor. The Recipient will take such action with respect to any subcontract as the State of Iowa may direct as a
means of enforcing such provisions including sanctions for noncompliance. In the event the Recipient becomes involved in or
is threatened by litigation with a subcontractor or vendor as a result of such direction by the State of Iowa, the Recipient may
request the State of Iowa to enter into such litigation to protect the interests of the State of Iowa.
16.0 POLITICAL ACTIVITY. No portion of program funds shall be used for any partisan political activity or to further
the election or defeat of any candidate for public office. Neither the program nor the funds provided therefore, nor the
personnel employed in the administration of this Contract or its Funding Agreements, shall be in any way or to any extent,
engaged in the conduct of political activities in contravention of The Hatch Act (5 U.S.C. 15).
.
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General Provisions