HomeMy WebLinkAboutLetterious" 4.,
Certified Mail -Return Receipt Requested
January 25, 2006
Mr. Ardo Mesa
President
Alfapattah Community Action, Inc.
2257 N.W. North River Drive
Miami, FL 33125
Dear Mr. Mesa:
U. S. Department msiag and Vrbau Development
Jacksonville Field Chime
Chsule, Bennett Federal Building
400 West Bay Street
Suite 1015
Jacksonville, Florida 32202-441 f)
SUBJECT: Section 202 Agreement
Fiscal Year 2005
Project Name: Allapattab Community Action, Inc.
City and State: Miami, Florida
Project No.: 066-EE106•WAH / FL29-S051.J02
No. of Units: 80 No. of Residents: 79
I am pleased to advise you that your application to construct 79 units of housing
for the elderly and one unit for a resident manager under the Section 202 Supportive
Housing Program for the Elderly has been approved.
Capital Advance authority in the amount of $8,942,100 is available for this
project, along with Project Rental Assistance contract and budget authority of $234,900
and $1,174,500, respectively.
In accordance with the provisions of the Consolidated Appropriations Act, 2005,
the amount of the Project Rental Assistance made available for this project Is based on
75. percent (rather than on 100 percent) of the current operating cost standards
applicable to Section • 202 projects in Miami, Florida, This takes . into account the
average tenant contribution toward rent. In addition. the term of the Project Rental
.Assistance Contract Is five (5) years.
Section 202 Capital Advance Funds and Project Rental Assistance Contract
Funds will be obligated for your project upon your signing of this Agreement and
returning it to this Office so that it can be executed by the Assistant Secretary for
Housing. The signature of the Assistant Secretary for Housing constitutes the obligation
of funds. As with all programs. these funds are subject to the availability of
appropriations.
HUD'r mission is to increase homeownership, support community
dcvelopmcrrt and increase access to afordabk housing free from discrimination.
www.hud.rov
espano1.hvd.gov
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The FY-2005 Consolidated Appropriations Act requires that the funding made
available for this program be obligated by September 30, 2008. Once signed by you
and co -signed by the Assistant Secretary for Housing, this Agreement will constitute an
obligation on the part of the Federal government, contingent upon the terms and
conditions herein. In addition, pursuant to 31 U.S.C. Section ' 1551, any funds
(Capita Advance and PRAC) not disbursed (obligated or unobligated) by
September 30, 2013, will be recaptured.
Please indicate by signing in the space provided whether or not you accept this
Agreement including the special conditions or requirements that are specified herein,
and certify to your understanding that the project must be developed in accordance with
the terms sat forth in this Agreement. Return by Certified Mail - Return Receipt
Requested, two signed copies of this Agreement, along with the original of a
• completed Form HUD-2530, Previous Participation Certification, and• resume for
the consultant (if a consultant has been or will be used) to this Office within 14
days from the date of this letter, It the Sponsor will be the consultant, the submission
of these documents on the consultant may be deferred until after formation of the
Owner. Corporation. If such is the case, the documents on the 'consultant must be
submitted to this Office Immediately upon completion of the contractual arrangements.
Please advise this Office whether or not a consultant has been or will be used and the
type of consultant by completing the following:
( ) Sponsor/Consultant
(X) Independent Professional Consultant
( ) No Consultant has been or will be used
TERMS AND CONDITION§
Your acceptance of this Agreement constitutes a certification and agreement by
the Sponsor that:
(1) There will not be made any sale, assignment, conveyance, or any other form of
transfer of this Agreement, funding, the property or project, or any Interest therein,
except a transfer from the Sponsor to an approved single -purpose Owner organized
by It.
(2) The Agreement and fund reservation will be canceled if construction, rehabilitation or
acquisition has not commenced within 18 months from the date of this Agreement,
unless limited extensions, of up to 24 months, are approved by HUD. Such
extensions will be based upon HUD's determination that the Owner has established
a reasonable schedule and is making sufficient progress toward the start of
construction.
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(3) The Section 202 Capital Advance and Project Rental Assistance Contract funds
available for the project identified herein may not be used in connection with any
other project.
(4) This Agreement and fund reservation will be subject to cancellation, at HUD's.option,
in the event there comes into existence or HUD becomes aware of a pre-existing
conflict of interest involving .the project on the part of officers or directors of either the
Sponsor or Owner organization (including affiliates).
(5) An attempt will be made to obtain exemption from State and/or local real and/or
personal property taxes. Evidence of filing, together with the response received
from the taxing authority, must be submitted with the Application far Finn
Commitment in one of the following forms:
(a) Tax exemption (c) Payment in Lieu of Taxes (PILOT)
(b) Tax abatement (d) ineligibility for any tax relief
Eligibility for (a), (b), or (c) must be supported by 'a copy of the appropriate
legislation or ordinance,
(6) HUD will ael amend the amounts approved herein for this project before initial
closing has occurred. Therefore, based on i1UD's review of the Firm
Commitment Application, the Sponsor will be liable for the. cost of any front-
end cash requirement should the cost to develop the project exceed the
amount specified In this Agreement. After initial closing, HUD may consider an
amendment to the Agreement, if necessary, but only for increases resulting from
approved change order Items during construction, subject to the availability of funds.
(7) HUD will to consider any increases in the Project Rental Assistance Contract
reservation approved herein until after one full year of project operation,
(8) Special Conditions or Requirements - This Agreementis issued subject to:
a. Formation of a legally acceptable single -purpose Owner Corporation within 30
days from the date of this document.
b. Capitalization of the Owner Corporation in a sufficient amount to permit the
Owner to meet its obligations in connection with the project. This includes the
minimum capital investment, start-up costs, excess land costs, ineligible
amenities, excessive construction costs and arty other funds the Sponsor
specifically commits to the project.
c. Evidence that the site is under the Owner's control at the time the
Application for Firm Commitment is submitted.
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d. Submission of Forms HUD-2530, Previous Participation Certification, for all
officers and directors of the Owner's board within 90 days and subsequent
clearance thereof.
e. Credit investigation clearance of the Owner's officers.
f. Submission of an Application for Firm Commitment in full compliance with
HUD's design and cost standards and programmatic requirements within ILIQ
days from the date of this Agreement. The design and cost standards apply
to all projects regardless of the proposed operating cost level. The design
must not include any prohibited features and must be cost efficient.
g. Submission of Conflict of Interest and Disclosure Certifications for each
officer and director of both the Sponsor and Owner and Identity of Interest
and Disclosure Certifications for all development team members. NOTE: At
any time a new development team amber Is added or changed, an Identity
of Interest Certification must be submitted. Likewise, at any time the Sponsor
or Owner changes any officers or directors, a Conflict of Interest and
Disclosure Certification must be submitted for the new pereon(s).
h. Submission of the land appraisal within 30 days from the date of this
Agreement.
I. If the site is subject to a leasehold, the lease must conform to the wording of
the Lease Addendum — Section 202 as contained in Appendix 14 of the
Section 202 Handbook 4571.5. If approved, by this office, the terms of the
Lease Addendum may be varied only to conform to the law of the jurisdiction
in which the project is located.
You are required to comply with the Department's policy with respect to salary
limitations for consultants. If a consultant will be used for your project, you
must • ensure that the maximum salary payable to the consultant will riot
exceed the rate paid for level IV of the Executive Schedule, You can
determine the maximum consultant's salary based on the level IV rate of the
Executive Schedule by aooessing the Office of Personnel and Management's
website at www.ap.gov/oca/pay1ates.
k. You are required to provide a drug -free workplace. Compliance with this
requirement means that you will:
1) Publish a statement, notifying employees that. •it is unlawful to
manufacture, distribute, dispense, possess or use a controlled substance
in the applicant's workplace and that such activities are prohibited, The
statement must specify the actions that will be taken against employees
for violation of this prohibition. The statement must also notify employees
than as a condition of employment under the federal award. that they are
j.
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required to abide by the terms of the statement and each employee rnust
agree to notify the employer, in writing of any violation of a criminal drug
statute occurring in the workplace no later than five calendar days. after
such violation;
2) Establish an on -going drug -free awareness program to inform employees
about:
a) The dangers of drug abuse in the workplace;
b) The applicant's policy of maintaining a drug -free workplace;
c) Any available drug counseling, rehabilitation, or employee maintenance
programs; and
d) The penalties that may be imposed upon employeesfor drug abuse
violations occurring in the workplace;.
3) Notify the federal agency In writing within 10 calendar days after receiving
notice from an employee of a drug abuse conviction or otherwise receiving
actual notice of a drug abuse conviction. The notification must be
provided in writing to HUD's Office of Departmental Grants Management
and Oversight, Department of Housing and Urban Development, 451
Seventh Street, SW, Room 3156, Washington, DC 20410-3000, along
with the following information;
a) The program title and award number for each. HUD award covered;
b) The HUD staff contact name, phone and fax numbers; and
c) A grantee contact name, phone and fax numbers; and
4) Require that each employee engaged in the performance of the federally
funded award be given a copy of the drug -free workplace statement
required in item (1) and notify the employee that one of the following
actions will be taken against the employee within 30 calendar days of
receiving notice of any drug abuse conviction:
a) Institution of a personnel action against the employee, up to and
including termination consistent with requirements of the Rehabilitation
Act of 1973, as amended; or
b) Requiring that the employee participate satisfactorily in a drug abuse
assistance or rehabilitation program approved for such purposes by a
federal, state or local health, law enforcement or other appropriate
agency.
I. In accordance with 24 CFR Part 24, no award of federal funds may be made
to applicants that are presently debarred or suspended, or proposed to be
debarred or suspended, from doing business with the federal government.
This requirernent applies not only to you, as the Sponsor, and the Owner,
when formed, but also to all lower• tier covered transactions •and to all
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solicitations for lower tier covered transactions. The prohibition includes the
following:
1) Having principals who, within the previous three years, have been
convicted of or had a civil judgment rendered against them for commission
of fraud. or a criminal offense in connection with obtaining, attempting to
obtain, or performing a public (federal, state, or local) transaction, violation
of federal or state anti-trust statutes or commission of embezzlement,
theft, forgery, bribery, falsification or destruction of records, making false
statements or receiving stolen property; and
2) Charges or indictments against the Sponsor, Owner and their principals by
a governmental entity (federal, state and local) for commission of any of
the above violations within the previous three years.
m. You as the Sponsor, and the Owner, when formed, are subject to the
provisions of Section 319 of Public Law 101-121 (approved October 23,
1989) (31 U.S.C. 1352) (the Byrd Amendment), which prohibits recipients of
federal .contracts, grants, or loans from using appropriated funds for lobbying
the executive or legislative branches of the federal government in connection
with a specific contract, grant, or loan, in addition, the Owner, when formed,
must disclose, using Standard Form LLL "Disclosure of Lobbying Activities,'
any funds, other than federally appropriated funds, that will be or have been
used to influence federal employees, Members of Congress, and
congressional staff regarding specific grants or contracts.
n. You, as the Sponsor, and the Owner, when formed, aro required to report
annually, beginning from the date of the Agreement Letter, on the results
achieved against the output goal(s) and outcome(s), which proposed in the
Program Outcome Logic Model that was submitted in your application.
o. Other Conditions, if any (listed below):
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1) Flood insurance is required and must be maintained on the project during
the term of the capital advance to the maximum amount of the capital
advance or the insurance limit for the structure, whichever Is Tess.
2) The lowest habitable floor elevation of the building including the structures
pertinent mechanical equipment must be maintained at or above the 100
year base flood elevation.
3) Comply with conditions contained in Florida Department of Environmental
Protection letter dated July 20, 2005, concerning a General Environmental
Resource Permit issued by Miami —Dade Department of Environmental
Resource Management (DERM).
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4) Provide copies of the South Florida Water Management District (SWMD)
and local approvals.
5) The on -site monitoring well is to be abandoned in accordance with federal,
state and local regulations.
6) HUD encourages all new construction end all new applications requiring
rehabilitation to utilize energy saving devices including Energy Star
construction standards and appliances. Therefore, we ask you to include
such energy saving methods and devices in your final plans and
specifications.
To provide you and your architect with assistance in the development of a
project that meets HUD's design and cost standards, immediately contact. Arian
Schulze, HUD'a design representative, at (904) 232-1777, x. 2042, to discuss t e
ern f the project.
In addition, HUD has developed revised procedures applicable to the
submission, review and processing of Section 202 Applications for Firm Commitment
through Final Closing, We have enclosed a copy of Notice H 96-102 that outlines
Section 202 program changes. Please read the Notice very carefully because the
revised procedures will affect not only your project funding but also your responsibilities
for project completion.
If two copies of this Agreement indicating acceptance are not returned
within 14 days of the date of this Agreement, or if you' accept and your single -
purpose Owner fails to submit an Application for Firm Commitment within the
specified period, HUD may cancel this Agreement and the fund reservation.
If you have any questions regarding the requirements for submission of the
Application for Firm Commitment and to .obtain information about your required
attendance at the Office's Project Planning Conference, please call Susan Richardson,
Project Manager, at (904) 232-1777, x. 2100.
• We look forward to working with you toward the successful completion of this
project.
Sincerely,
James D. Branso
Acting Director of Project Management
Multifamily Division, 4HHMi..4
Enclosures