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Agenda 12/09/2014 Item #16D 2 12/9/2014 16.D.2. EXECUTIVE SUMMARY Recommendation to approve Second Amendment to a subrecipient agreement with Big Cypress Housing Corporation to reallocate activity funds. OBJECTIVE: To mitigate the impact of natural disasters in low-income neighborhoods through the use of grant funds. CONSIDERATIONS: Collier County is the Recipient of Disaster Recovery Initiative (DRI) funds from the Florida Department of Economic Opportunity(DEO). The DRI funds may be used to provide disaster relief and long term recovery. On October 22, 2013, the Board approved an agreement with subrecipient Big Cypress Housing Corporation (BCHC) for the construction of single-family rental housing units (Agenda item 16D8). The project will benefit low and very low income persons. On May 27, 2014, the Board approved First Amendment to the Agreement providing an additional funding source to the project(Agenda item 16D16). The second amendment to the Agreement reallocates funds from the environmental activity to construction and clarifies conflict of interest and monitoring escalation language. This amendment incorporates corrective action language to be consistent with all grant agreements and Resolution 2013- 228 and other local, state and federal grantor required language changes. The proposed modification is allowable under the grant, and will not increase the amount of the grant funds or impact the budget for this project. FISCAL IMPACT: The proposed actions have no new fiscal impact.The funding source for the grants is the Florida Department of Economic Opportunity. Funds are budgeted in the Housing Grants Fund (705), Projects 33104, 33191 and Urban Improvement Grants(121), Projects 34540 and 34541. GROWTH MANAGEMENT IMPACT: Implementation of DRI will help facilitate efforts to meet the goals, objectives and policies set forth in the Housing Element of the Growth Management Plan. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires a majority vote for Board action—JAB RECOMMENDATION: That the Board of County Commissioners approves and authorizes the Chairman to execute the Second Amendment to the agreement with Big Cypress Housing Corporation for the construction of single-family rental homes. Prepared By: Lisa Oien, Grants Coordinator, Community and Human Services Packet Page -1564- 12/9/2014 16.D.2. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.D.16.D.2. Item Summary: Recommendation to approve Second Amendment to a subrecipient agreement with Big Cypress Housing Corporation to reallocate activity funds. Meeting Date: 12/9/2014 Prepared By Name: OienLisa Title: Grants Coordinator, Community&Human Services 10/17/2014 4:49:36 PM Submitted by Title: Grants Coordinator, Community &Human Services Name: OienLisa 10/17/2014 4:49:38 PM Approved By Name: TownsendAmanda Title: Director-Operations Support, Public Services Division Date: 10/24/2014 11:20:04 AM Name: MagonGeoffrey Title: Grants Coordinator, Community&Human Services Date: 10/30/2014 11:55:54 AM Name: KushiEdmond Title: Accountant, Community &Human Services Date: 11/3/2014 10:50:09 AM Name: Bendisa Marku Title: Supervisor-Accounting, Community &Human Services Date: 11/3/2014 11:33:30 AM Name: SonntagKristi Packet Page -1565- 12/9/2014 16.D.2. Title: Manager-Federal/State Grants Operation, Community&Human Services Date: 11/3/2014 2:30:34 PM Name: GrantKimberley Title: Director-Housing,Human and Veteran S, Community &Human Services Date: 11/4/2014 1 2:04:31 PM Name: BelpedioJennifer Title: Assistant County Attorney, CAO General Services Date: 11/5/2014 10:24:28 AM Name: RobinsonErica Title: Accountant, Senior, Grants Management Office Date: 11/14/2014 8:54:31 AM Name: Carnell Steve Title: Administrator-Public Services, Public Services Division Date: 11/18/2014 4:55:11 PM Name: BelpedioJennifer Title: Assistant County Attorney, CAO General Services Date: 11/21/2014 2:27:35 PM Name: KlatzkowJeff Title: County Attorney, Date: 11/21/2014 3:58:49 PM Name: StanleyTherese Title: Manager-Grants Compliance, Grants Management Office Date: 11/26/2014 1:01:53 PM Name: OchsLeo Title: County Manager, County Managers Office Date: 11/30/2014 1 1:24:39 PM Packet Page -1566- 12/9/2014 16.D.2. Grants # 12DB-P5-09-21-01-K39 #07DB-3V-09-21- 01-Z01 #08DB-D3-09-21-01-A03 #10DB-D4-09-21-01-K09 CFDA/CSFA#- 14.228 Sub recipient -Big Cypress Housing Corporation DUNS# 064723252 FETI FEID# 65-1067124 FY End-12/3112/31 Monitor End: 2018 2019 SECOND AMENDMENT TO AGREEMENT BETWEEN COLLIER COUNTY AND Big Cypress Housing Corporation Hatcher's Preserve, Affordable Rental Housing This Amendment, is entered into this day of , 2014, by and between Big Cypress Housing Corporation, a not for profit existing under the laws of the State of Florida, herein after referred to as SUBRECIPIENT and Collier County, Florida, herein after to be referred to as "COUNTY," collectively stated as the "Parties." WHEREAS, on October 22, 2014, the Board of County Commissioners approved submittal of modifications to grant agreement numbers, 12DB-P5-09-21-01-K39, 07DB-3V-09- 21-01-ZO1 and 08DB-D3-09-21-01-A03 between Collier County and the Florida Department of Economic Opportunity (DEO) and the execution of an associated subrecipient agreement providing Community CDBG/DRI/DREF funds for the Hatcher's Preserve project in Immokalee, Florida; WHEREAS on May 27, 2014 the Board of County Commissioners approved submittal of modification#9 for grant agreement#10DB-D4-09-21-01-K09 and the associated subrecipient agreement amendment providing additional Community CDBG/DRI funds for the Hatcher's Preserve project; WHEREAS, the Parties desire to amend the subrecipient agreement to reallocate funds from the environmental activity to construction activities at Hatcher's Preserve. NOW, THEREFORE, in consideration of the mutual benefits contained herein, it is agreed by the Parties as follows: Page 1 of 7 Big Cypress Housing Corporation DREF 08-06,DR1 05-06,DRI 05-11 and DRI 08-13 Hatcher's Preserve Affordable Housing Contract Amendment 42 Packet Page-1567- 12/9/2014 16.D.2. Words S ri 'ough are deleted; Words Underlined are added All references contained throughout the agreement to Housing, Human and Veteran Services (HHVS) hereinafter shall read Community and Human Services (CHS). THE SUBRECIPIENT AGREES TO: III. AGREEMENT AMOUNT * * * Line Item Description Total DREF DRI DPI DRI DREF/DRI FUNDS FUNDS FUNDS FUNDS FUNDS (2008 funds) Z grant A grant K grant (2005 funds) (2005 funds) (2008 funds) NOTE* Activities/items/services may include but not be limited to: BCHC, Hatcher's Preserve, Affordable Rental Housing Project Component#1 $1,095,944.30 $221,388.80 $106,650.69 $307,161.81 $460,743.00 The construction cost $1,099,944.30 $311,161.81 and associated costs of fees and permits necessary to construct a minimum of eight single family rental homes at Hatcher's Preserve in Immokalee,Florida. Component #2 The cost $4000:00 $4,000.00 of a HUD required Environmental Assessment for the Hatcher's Preserve Community. Total $1,099,944.30 $ 221,388.80 $106,650.69 $ 311,161.81 $460,743.00 Page 2 of 7 Big Cypress Housing Corporation DREF 08-06,DRI 05-06, DRI 05-11 and DRI 08-13 Hatcher's Preserve Affordable Housing Contract Amendment#2 O`1 Packet Page -1568- 12/9/2014 16.D.2. * X Y The following table details the project deliverables, documents and submission schedule. Deliverable Supporting Documents Exhibit Submission Date Project Component #1 Construction: Submission of Exhibit Monthly The construction cost and supporting documents must "B"using invoicing associated costs of fees be provided as back up as Exhibit and permits necessary to evidenced by,but not limited "C" if construct a minimum of to, signed AIA G702-1992 applicable. eight rental single family form (attached as Exhibit homes at Hatcher's "G") or equivalent document Preserve in Immokalee, accompanied by the Florida contractor's Schedule of Values and associated photos. 10%Retainage will be Submit withheld with each request request for payment and will be after final released upon completion of close out activities and final close out monitoring monitoring clearance Project Component #2 Assessment document Exhibit One time The cost of a HUD provided to HHVS and an `B" before required Environmental invoice from Environmental construction Assessment for the Assessment consultant: contract Hatcher's Preserve Community. Program compliance Submission of Annual Exhibit At project documents Certificate of Insurance, "E" for the initiation Annual Audit, Fair Housing annual Plan and Fair Housing Audit Marketing Plan Monthly Reporting for Submission of applicable Exhibits Monthly Progress, beneficiaries reports "D-1", "D- and contracts 2","D-3" and "D-4" Page 3 of 7 Big Cypress Housing Corporation DREF 08-06,DRI 05-06,DRI 05-11 and DRI 08-13 Hatcher's Preserve Affordable Housing Contract Amendment#2 �9 n Packet Page-1569- 12/9/2014 16.D.2. IX. ADMINISTRATIVE REQUIREMENTS * X * C. REPORTS AND EVALUATIONS (MONITORING) Reimbursement may be contingent on the timely receipt of complete and accurate reports required by this Agreement, and on the resolution of monitoring findings identified pursuant to this Agreement as deemed necessary by the County Manager or designee. During the term, SUBRECIPIENT shall submit monthly progress reports to the COUNTY on the 26th day of each month for the month reported. Monthly reporting includes comprehensive information in regards to progress, beneficiaries, accomplishments and contract information. Exhibits D-1, D-2, D-3 and D-4 are provided for monthly reporting. Other reporting requirements may be required by the County Manager or their designee in the event of Program changes; the need for additional information or documentation arises; and/or legislative amendments are enacted. Reports and/or requested documentation not received by the due date shall be considered delinquent and may be cause for default and termination of this Agreement. During the term, SUBRECIPIENT shall submit an annual audit monitoring report (Exhibit E)to the COUNTY no later than 180 days after the SUBRECIPIENT's fiscal year end. The SUBRECIPIENT agrees that HHVS will carry out no less than one (1) annual on-site monitoring visit and evaluation activities as determined necessary. At the COUNTY's discretion, a desk top review of the activities may be conducted in lieu of an on-site visit. The continuation of this Agreement is dependent upon satisfactory evaluations. The SUBRECIPIENT shall, upon the request of HHVS, submit information and status reports required by HHVS, DEO or HUD to enable HHVS to evaluate said progress and to allow for completion of reports required. The SUBRECIPIENT shall allow HHVS, DEO or HUD to monitor the SUBRECIPIENT on site. Such site visits may be scheduled or unscheduled as determined by HHVS, DEO or HUD. The COUNTY will monitor the performance of the SUBRECIPIENT based on goals and performance standards as stated with all other applicable federal, state and local laws, regulations, and policies governing the funds provided under this contract. Substandard performance as deteuuined by the COUNTY will constitute noncompliance with this Agreement. If corrective action is not taken by the SUBRECIPIENT within a reasonable period of time after being notified by the COUNTY. contract suspension or termination procedures will be initiated. SUBRECIPIENT agrees to provide HUD, the HUD Office of Inspector General, the General Accounting Office, the COUNTY, or the COUNTY's internal auditor(s) access to all records related to performance of activities in this agreement Page 4 of 7 Big Cypress Housing Corporation DREF 08-06,DRI 05-06,DRI 05-11 and DRI 08-I3 Hatcher's Preserve Affordable Housing Contract Amendment#2 w Packet Page -1570- 12/9/2014 16.D.2. CORRECTIVE ACTION Corrective action plans may be required for noncompliance, nonperformance, or unacceptable performance under this contract. Penalties may be imposed for failures to implement or to make acceptable progress on such corrective action plans. In order to effectively enforce Resolution No. 2013-228, Housing Human and Veteran Services (HHVS) has adopted an escalation policy to ensure continued compliance by Subrecipients, Developers, or any entity receiving grant funds from HHVS's policy for escalation for non-compliance is as follows: 1. Initial non-compliance may result in Findings or Concerns being issued to the entity and will require a corrective action plan be submitted to the Department within 15 days following the monitoring visit. o Any pay requests that have been submitted to the Department for payment will be held until the corrective action elan has been submitted. o HHVS will be available to provide Technical Assistance (TA) to the entity as needed in order to correct the non-compliance issue. 2. If in the case an Entity fails to submit the corrective action plan in a timely manner to the Department, the Department may require a portion of the awarded grant amount be returned to the Department. o The County may require upwards of five percent (5%) of the acquisition amount be returned to the Department, at the discretion of the Board of County Commissioners. o The entity may be considered in violation of Resolution No. 2013-228 3. If in the case an Entity continues to fail to correct the outstanding issue or repeats an issue that was previously corrected, and has been informed by the Department of their substantial non-compliance by certified mail; the Department may require a portion of the awarded grant amount or the amount of the CDBG/DRI and DREF investment for acquisition of the properties conveyed, be returned to the Department. o The Department may require upwards of ten percent (10%) of the acquisition amount be returned to the Department, at the discretion of the Board of County Commissioners. Page 5 of 7 Big Cypress Housing Corporation DREF 08-06,DRI 05-06,DRI 05-11 and DRI 08-13 Hatcher's Preserve Affordable Housing Contract Amendment#2 0 Yr) Packet Page -1571- 12/9/2014 16.D.2. o The entity will be considered in violation of Resolution No. 2013-228 4. If in the case after repeated notification the Entity continues to be substantially non- compliant, the Department may recommend the contract or award be terminated. o The Department will make a recommendation to the Board of County Commissioners to immediately terminate the agreement or contract. The Entity will be required to repay all funds disbursed by the County for project that was terminated. This includes the amount invested by the County for the initial acquisition of the properties. o The entity will be considered in violation of Resolution No. 2013-228 If in the case the Entity has multiple agreements with the Department and is found to be non- compliant, the above sanctions may be imposed across all awards at the discretion of the Board of County Commissioners. X. OTHER PROGRAM REQUIREMENTS E. CONFLICT OF INTEREST The SUBRECIPIENT covenants that no person under its employ who presently exercises any functions or responsibilities in connection with the Project, has any personal financial interest, direct or indirect, in the Project areas or any parcels therein, which would conflict in any manner or degree with the performance of this Agreement and that no person having any conflict of interest shall be employed by or subcontracted by the SUBRECIPIENT. The SUBRECIPIENT covenants that it will comply with all provisions of 24 CFR 570.611 "Conflict of Interest", and the State and County statutes, regulations, ordinance or resolutions governing conflicts of interest. Any possible conflict of interest on the part of the SUBRECIPIENT or its employees shall be disclosed in writing to HHVS provided, however, that this paragraph shall be interpreted in such a manner so as not to unreasonably impede the statutory requirement that maximum opportunity be provided for employment of and participation of low and moderate- income residents of the project target area. The SUBRECIPIENT will notify the COUNTY in writing and seek COUNTY approval prior to entering into any contract with an entity owned in whole or in part by a covered person or an entity owned or controlled in whole or in part by the SUBRECIPIENT. The COUNTY Page 6 of 7 Big Cypress Housing Corporation DREF 08-06,DRI 05-06,DRI 05-11 and DRI 08-13 Hatcher's Preserve Affordable Housing Contract Amendment#2 \C'>>I Packet Page -1572- 12/9/2014 16.D.2. may review the proposed contract to ensure that the contractor is qualified and that the costs are reasonable. Approval of an identity of interest contract will be in the COUNTY's sole discretion. This provision is not intended to limit SUBRECIPIENT's ability to self-manage the projects using its own employees. Any possible conflict of interest on the part of the SUBRECIPIENT or its employees shall be disclosed in writing to HHVS provided, however, that this paragraph shall be interpreted in such a manner so an not to unreasonably impede the statutory requirement that maximum opportunity be provided for employment of and participation of low and moderate income residents of the project target area. IN WITNESS WHEREOF, the parties have each, respectively, by an authorized person or agent,hereunder set their hands and seals on the date first written above. ATTEST: BOARD OF COUNTY COMMISSIONERS OF DWIGHT E. BROCK, CLERK COLLIER COUNTY,FLORIDA By: , Deputy Clerk Tom Henning, Chairman Dated: Date: (SEAL) Big Cypress Housing Corporation By: Sub recipient Signature Steven Kirk,President Approved as to form and legality: Jennifer A. Belpedio Assistant County Attorney o '" et� Page7of7 `�\ Big Cypress Housing Corporation DREF 08-06,DR1 05-06, DR1 05-11 and DRI 08-13 Hatcher's Preserve Affordable Housing Contract Amendment#2 'ta Packet Page -1573-