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Backup Documents 06/25/2019 Item #16D11 ORIGINAL DOCUMENTS CHECKLIST & ROUTING SLIP 16 D 11 TO ACCOMPANY ALL ORIGINAL DOCUMENTS SENT TO THE BOARD OF COUNTY COMMISSIONERS OFFICE FOR SIGNATURE Print on pink paper. Attach to original document. The completed routing slip and original documents are to be forwarded to the County Attorney Office at the time the item is placed on the agenda. All completed routing slips and original documents must be received in the County Attorney Office no later than Monday preceding the Board meeting. **NEW** ROUTING SLIP Complete routing lines#1 through#2 as appropriate for additional signatures,dates,and/or information needed. If the document is already complete with the exception of the Chairman's signature,draw a line through routing lines#1 through#2,complete the checklist,and forward to the County Attorney Office. Route to Addressee(s) (List in routing order) Office Initials Date 1. Lisa N. Carr Community and Human LNC 6/26/19 Services 2. County Attorney Office County Attorney Office accf) G [4 3. BCC Office Board of County w0Lr) Commissioners \/, 02-4c\ 4. Minutes and Records Clerk of Court's Office ` p tt;0t,,, — tC PRIMARY CONTACT INFORMATION Normally the primary contact is the person who created/prepared the Executive Summary. Primary contact information is needed in the event one of the addressees above,may need to contact staff for additional or missing information. Name of Primary Staff Lisa N.Carr, Sr.Grant Coordinator, Phone Number 239-252-2339 Contact/ Department Community and H Services Agenda Date Item was 6/25/2019 Agenda Item Number 16.D11 Approved by the BCC i. Type of Document Agreement Between Collier County and Number of Original 3 Attached Residential Options of Florida,Inc/ Documents Attached PO number or account number if document is N/A to be recorded INSTRUCTIONS & CHECKLIST Initial the Yes column or mark"N/A"in the Not Applicable column,whichever is Yes N/A(Not appropriate. (Initial) Applicable) 1. Does the document require the chairman's original signature? S 0 K tea- to 1 2. Does the document need to be sent to another agency for additional signatures? 1'f yes, LNC provide the Contact Information(Name;Agency;Address;Phone)on an attached sheet. 3. Original document has been signed/initialed for legal sufficiency. (All documents to be LNC signed by the Chairman,with the exception of most letters,must be reviewed and signed by the Office of the County Attorney. 4. All handwritten strike-through and revisions have been initialed by the County Attorney's LNC Office and all other parties except the BCC Chairman and the Clerk to the Board 5. The Chairman's signature line date has been entered as the date of BCC approval of the LNC document or the final negotiated contract date whichever is applicable. 6. "Sign here"tabs are placed on the appropriate pages indicating where the Chairman's LNC signature and initials are required. 7. In most cases(some contracts are an exception),the original document and this routing slip LNC should be provided to the County Attorney Office at the time the item is input into SIRE. Some documents are time sensitive and require forwarding to Tallahassee within a certain time frame or the BCC's actions are nullified. Be aware of your deadlines! 8. The document was approved by the BCC on 06/25/19 and all changes made during N/A is not the meeting have been incorporated in the attached document. The County ,co, an option for Attorney's Office has reviewed the changes,if applicable. this line. 9. Initials of attorney verifying that the attached document is the version approved by the /A is not BCC,all changes directed by the BCC have been made,and the document is ready for an option for Chairman's signature. .. this line. I:Forms/County Forms/BCC Forms/Original Documents Routing Slip WWS Original 9.03.04,Revised 1.26.05,Revised 2.24.05;Revised 11/30/12 16011 MEMORANDUM Date: June 27, 2019 To: Lisa Carr, Grant Coordinator Community and Human Services From: Teresa Cannon, Deputy Clerk Minutes & Records Department Re: Agreement w/Residential Options of Florida, Inc. Attached are two originals of the document referenced above, (Item #16D11) approved by the Board of County Commissioners on Tuesday, June 25, 2019. An original has been kept by the Minutes and Record's Department for the Board's Official Record. If you have any questions, please feel free to contact me at 252-8411. Thank you Attachment 16011 Grant - SHIP FY 2018-2019 Agreement#: SHIP RA 2019-01 Activity: Rental Acquisition SPONSOR: Residential Options of Florida,Inc. • CSFA#: 52.901 DUNS#: 081166518 FEIN: 47-1232139 FISCAL YEAR: December 31st MONITORING END: Annually through June 2036 AGREEMENT BETWEEN COLLIER COUNTY AND RESIDENTIAL OPTIONS OF FLORIDA,INC. THIS AGREEMENT is made and entered into this 25th day of June, 2019, by and between Collier County, a political subdivision of the State of Florida, ("COUNTY" or Grantee") having its principal address as 3339 E. Tamiami Trail, Suite 211, Naples FL 34112, and Residential Options of Florida, Inc., hereinafter referred to as "SPONSOR", a private not-for-profit corporation existing under the laws of the State of Florida, having its principal office 3050 Horseshoe Drive N., Suite 285, Naples,FL 34104. WHEREAS,the William E. Sadowski Affordable Housing Act adopted by the State of Florida in 1992 provided a dedicated revenue source for affordable housing in Florida and created the State Housing Initiatives Partnership(SHIP)Program; WHEREAS, the State Housing Initiative Program is established in accordance with Section 420.907- 9079,Florida Statutes and Chapter 67-37, Florida Administrative Code;and WHEREAS,the COUNTY is a participant in the State Housing Initiatives Partnership Program; and WHEREAS,pursuant to the State Housing Initiatives Partnership Program,the COUNTY is undertaking certain activities to primarily benefit persons or households earning not greater than 120 percent of median annual income adjusted for family size;and WHEREAS,the Fiscal Year 2016-2019 Local Housing Assistance Plan as amended was adopted by the Board of County Commissioners on April 26, 2016, Resolution No, 2016-75, amended September 26, 2017, amended October 10,2017,technical revision April 2018,and amended September 25,2018. WHEREAS, the COUNTY and the SPONSOR desire to provide rental acquisition as in accordance with this Agreement and the aforementioned Local Housing Assistance Plans; and WHEREAS,the COUNTY desires to engage the SPONSOR to implement such undertakings as specified in Exhibit"B"and determines that they are valid and worthwhile County purposes. NOW,THEREFORE, in consideration of the mutual promises and covenants herein contained, it is agreed by the Parties as follows: SHIP Rental Acquisition 1 1 16011 DEFINITIONS AND PURPOSE A. DEFINITIONS Terms shall be as defined in the State Housing Incentives Partnership (SHIP) Program, Section 420,9071, Florida Statutes and Chapter 67-37 of the Florida Administrative Code, and any amendments thereto(also referred to as the SHIP Program). B. PURPOSE The purpose of this Agreement is to state the covenants and conditions under which the SPONSOR will implement the Scope of Service summarized in Section II and Exhibit B of this Agreement. II. SCOPE OF SERVICE The SPONSOR shall, in a satisfactory and proper manner as determined by the COUNTY, perform the necessary tasks to administer and implement the described services herein incorporated by reference as Exhibits B — C (Rental Acquisition Project Requirements and Budget Narrative), in accordance with the terms and conditions of Requests for Applications. Rental Acquisition,State Housing Initiatives Partnership Funding Cycle Fiscal Years 2018-2019 and SPONSOR's Application dated February 10, 2019. III. GRANT AND SPECIAL CONDITIONS A. Within 60 days of the execution of this Agreement, the SPONSOR must deliver to Community and Human Services Division(CHS)for approval a detailed project schedule for the implementation through completion of the project to include staff assignment. B. The following resolutions and policies must be submitted by SPONSOR within sixty(60) days of this agreement: 1. Affirmative Fair Housing Policy 2. Procurement Policy including Code of Conduct 3. Affirmative Action Policy 4. Conflict of Interest Policy 5. Equal Opportunity Policy 6. Sexual Harassment Policy 7. Procedures for meeting the requirements set forth in Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. 794) 8. Fraud Policy 9. Tenant Waitlist Policy 10. Tenant Grievance Policy 11. Tenant Guidelines (Income) 12, Marketing Plan SHIP Rental Acquisition 2 16011 13. Property Maintenance Plan 14. Capital Needs Assessment Plan IV. PERIOD OF PERFORMANCE This Agreement shall be in effect from June 25, 2019 through June 30,2021, and all services required hereunder shall be completed in accordance with the schedule set forth in Exhibit B (Rental Acquisition Project Requirements).This agreement must remain in effect throughout the development process of the Project and is terminated upon completion of acquisition and initial lease-up of all units, including all SHIP-assisted units. The SPONSOR shall be responsible for ongoing reporting, subject to onsite monitoring, tenant income qualification activities and continued use for an affordability period of 15 years. In any event,all services required hereunder shall be completed by the SPONSOR prior to June 30, 2021. Any funds not obligated by the expiration date of this Agreement shall automatically revert to COUNTY. V. AGREEMENT AMOUNT It is expressly agreed and understood that the total amount to be disbursed by the COUNTY for the use by the SPONSOR during the term of the Agreement shall not exceed THREE HUNDRED THOUSAND DOLLARS AND NO CENTS ($300,000.00). The budget identified for the Project shall be as follows Line Item Description SHIP Funds Project Component One: Acquisition of rental $300,000.00 property. (Maximum is $300,000.00 per property.) TOTAL $300,000.00 Modifications to the "Budget and Scope" may only be made if approved, in advance, by the COUNTY. Budgeted fund shifts between cost categories and activities shall not be more than 10 percent and does not signify a change in scope. Fund shifts that exceed 10 percent of a cost category and activity shall only be made with Board approval. All services specified in Section II. Scope of Services, Exhibit B shall be performed by SPONSOR, or shall be put out to competitive bidding under a procedure acceptable to the COUNTY and State requirements. Contract administration shall be handled by the SPONSOR and monitored by CHS, which shall have access to all records and documents related to the project. The COUNTY will secure the awarded amount with a note and mortgage. The Note will bear interest at 0 percent interest per year and forgivable after 15 years if all SHIP terms and conditions are met. If the SPONSOR complies with the terms and conditions of this Agreement,the lien established by the Mortgage shall expire as set forth in the Mortgage. SHIP Rental Acquisition 3 al) 16011 If the SPONSOR offers the Property for sale before fifteen (15) years after the SPONSOR's receipt of the Certificate of Occupancy, or at any other time when there are existing mortgages on the Property, funded under the SHIP program, then the SPONSOR must give a right of first refusal (ROFR) for a 90 day period, to experienced non-profit organizations, reasonably approved by the COUNTY for purchase of the Property, at the then current market value, for continued occupancy by eligible persons. The 90-day right of first refusal period begins when a legal advertisement appears in a local newspaper of general circulation or other method authorized by statute or regulation, offering the Property for sale to non-profit organizations. COUNTY approval of any nonprofit organization submitting an offer of the full requested sale price or any other offer considered in the sole determination of the COUNTY to be reasonable, will be based on the criteria listed in the affordable multi-family rental housing development strategy sponsor selection criteria, in the COUNTY's FY 2016-2019 SHIP Local Housing Assistance Plan. Either (a) the 90-day right of first refusal period expires and the SPONSOR is not then a party to an active contract for purchase and sale of the Property, with an eligible nonprofit organization,reasonably approved by the COUNTY;or(b)a contract for purchase and sale of the Property is entered into by the SPONSOR and an eligible nonprofit organization, reasonably approved by the COUNTY,within such 90-day ROFR period but terminated by either party pursuant to the terms thereof subsequent to the 90-day period. The COUNTY shall wire funds and secure a 0 percent mortgage and forgivable for the acquisition at closing to the title company. The SPONSOR shall provide CHS closing disclosures seven (7) days prior to closing and submit Title Insurance to CHS the same day of closing. No wire transfer will be made until approved by CHS and the Collier County Clerk of Courts for grant compliance and adherence to any and all applicable local, state or federal requirements. Wire transfer will be made upon receipt of closing disclosures and in compliance with §218.70, Florida Statutes, otherwise known as the"Local Government Prompt Payment Act." The amount of wire transfer shall be not more than $300,000.00. The COUNTY reserves the right to deny payment of incomplete or altered closing disclosures, inadequately documented expenses, or expenses for items and services the COUNTY deems not to be usual, customary, and reasonable expenses related to the Project. VI. NOTICES Notices required by this Agreement shall be in writing and delivered via mail (postage prepaid), commercial courier, or personal delivery or sent by facsimile or other electronic means. Any notice delivered or sent as aforesaid shall be effective on the date of delivery or sending. All notices and other written communications under this Agreement shall be addressed to the individuals in the capacities indicated below, unless otherwise modified by subsequent written notice. COLLIER COUNTY ATTENTION: Lisa N. Carr, Sr. Grants Coordinator Collier County Government Community and Human Services 3339 E Tamiami Trial, Suite 211 Naples, Florida 34112 Email to: lisa.carr@colliercountyfl.gov Phone: 239-252-2339 SI-HP Rental Acquisition 4 3 G 16011 SPONSOR ATTENTION: Sheryl Soukup, Executive Director Residential Options of Florida, Inc. 3050 Horseshoe Drive, Suite 285 Naples, FL 34104 Email to: sheryl@flroof.org Telephone: 239-774-7663 VII. GENERAL CONDITIONS A. GENERAL COMPLIANCE The SPONSOR agrees to comply with the requirements as outlined in Section 420.907 of the Florida Statutes and Chapter 67-37 of the Florida Administrative Code. The SPONSOR also agrees to comply with all other applicable state and local laws,regulations, and policies governing the funds provided under this Agreement. The SPONSOR agrees to utilize funds available under this Agreement for Rental Acquisition. B. INDEPENDENT CONTRACTOR Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties.The SPONSOR shall at all times remain an "independent contractor" with respect to the services to be performed under this Agreement. The COUNTY shall be exempt from payment of all Unemployment Compensation, FICA, retirement benefits, life and/or medical insurance and Workers' Compensation Insurance, as the SPONSOR is an independent SPONSOR. C. WORKERS' COMPENSATION The SPONSOR, its contractors and subcontractors,shall provide Workers'Compensation Insurance coverage for all of its employees involved in the performance of this contract. D. INSURANCE The SPONSOR shall furnish a Certificate of Insurance naming Collier County as an additional insured with general liability limits of at least $1,000,000 per occurrence in accordance with Exhibit A. E. INDEMNIFICATION To the maximum extent permitted by Florida law, the SPONSOR shall indemnify and hold harmless Collier County, its officers,agents,and employees from any and all claims, liabilities, damages, losses, costs, and causes of action which may arise out of an act, or omission, including, but not limited to, reasonable attorneys' fees and paralegals' fees, to the extent caused by the negligence, recklessness, or intentionally wrongful conduct of the SPONSOR or any of its agents, officers, servants, employees, contractors, patrons, guests, clients, licensees, invitees, or any persons acting under the direction, control, or SHIP Rental Acquisition 5 Gpv � 16011 supervision of the SPONSOR in the performance of this Agreement.This indemnification obligation shall not be construed to negate,abridge,or reduce any other rights or remedies which otherwise may be available to an indemnified party or person described in this paragraph. The SPONSOR shall pay all claims and losses of any nature whatsoever in connection therewith and shall defend all suits in the name of the COUNTY and shall pay all costs (including attorney's fees) and judgments which may issue there-on. This Indemnification shall survive the termination and/or expiration of this Agreement. This section does not pertain to any incident arising from the sole negligence of Collier County. The foregoing indemnification shall not constitute a waiver of sovereign immunity beyond the limits set forth in Section 768.28, Florida Statutes. F. GRANTOR RECOGNITION The SPONSOR agrees that all notices, informational pamphlets, press releases, advertisements, descriptions of the sponsorships of the Program, research reports and similar public notices,whether printed or digital,prepared and released by the SPONSOR for,on behalf of, and/or about the Program shall include the statement: "FINANCED BY FLORIDA HOUSING FINANCING COPORATION (FHFC) AND COLLIER COUNTY COMMUNITY AND HUMAN SERVICES DIVISION" and shall appear in the same size letters or type as the name of the SPONSOR.This design concept is intended to disseminate key information regarding the development team as well as Equal Housing Opportunity to the general public. Construction signs shall comply with applicable COUNTY codes. G. AMENDMENTS The COUNTY and/or SPONSOR may amend this Agreement, at any time,provided that such amendments make specific reference to this Agreement,and are executed in writing, signed by a duly authorized representative of each organization, and approved by the Grantee's governing body. Such amendments shall not invalidate this Agreement, nor relieve or release the Grantee or SPONSOR from its obligations under this Agreement. The COUNTY may, in its discretion, amend this Agreement to conform with federal, state or local governmental guidelines, policies and available funding amounts, or for other reasons. If such amendments result in a change in the funding,the scope of services, or schedule of the activities to be undertaken as part of this Agreement, such modifications will be incorporated only by written amendment signed by both Grantee and SPONSOR. Expiration of Agreement: If the SPONSOR does not complete the project within the time period, the COUNTY Manager or designee may grant a cumulative time extension of no more than 180 days and modify any subsequent project work plans to reflect the extension. SHIP Rental Acquisition 6 3 16011 H. SUSPENSION OR TERMINATION Either party may terminate this Agreement, at any time, by giving written notice to the other party of such termination, and specifying the effective date thereof, at least 90 days before the effective date of such termination. In the event of any termination for convenience,all finished or unfinished documents, data, studies,drawings, maps, models, photographs, reports or other materials prepared by the SPONSOR under this Agreement shall,at the option of the COUNTY, become the property of the COUNTY. The COUNTY may also suspend or terminate this Agreement, in whole or in part, if the SPONSOR materially fails to comply with any term of this Agreement, or with any of the rules,regulations or provisions referred to herein,in addition to other remedies as provided by law. If through any cause, the SPONSOR shall fail to fulfill in a timely and proper manner its obligations under this Agreement,or violates any of the covenants,agreements, or stipulations of this Agreement,the COUNTY shall thereupon have the right to terminate this Agreement or suspend payment in whole or part by giving written notice to the SPONSOR of such termination or suspension of payment and specify the effective date thereof, at least five (5) working days before the effective date of termination or suspension. See Section VIII. G. — Corrective Action for escalation steps leading to suspension or termination for non-compliance. If payments are withheld, Community and Human Services Division (CHS) staff shall specify, in writing, the actions that must be taken by the SPONSOR as a condition precedent to resumption of payments and shall specify a reasonable date for compliance. Sufficient cause for suspension of payments shall include, but not be limited to: * Ineffective use of funds. * Failure to comply with Section II, Scope of Service of this Agreement. * Failure to submit periodic reports as determined by the COUNTY. PURCHASING Al! purchasing for consumables, capital equipment and services shall be made by purchase order or by a written contract and in conformity and in full compliance with the procedures prescribed by applicable Florida Statutes(FL 287.017)and the Collier County Purchasing Policy,whichever is more stringent. Purchasing Threshold Policy Dollar Range($) Competition Required $0 -$3,000 1 Verbal Quote $3,001 - $50,000 3 Written Quotes $50,000+ Bids,Proposals, Contracts(RFP, IFB etc.) All improvements specified in Part I Scope of Work, shall be performed by SPONSOR employees, or shall be put out to competitive bidding,under a procedure acceptable to the COUNTY and FL State requirements. The SPONSOR shall enter into contracts with the lowest, responsible and qualified bidder. Contract administration shall be handled by the SHIP Rental Acquisition 7 16011 SPONSOR and monitored by CHS, which shall have access to all records and documents related to the project. As provided in Section 287.133, Florida Statutes by entering into this Agreement or performing any work in furtherance hereof, the SPONSOR certifies that it, its affiliates, suppliers, subcontractors and consultants who will perform hereunder, have not been placed on the convicted vendor list maintained by the State of Florida Department of Management Services within the 36 months immediately preceding the date hereof. This notice is required by Section 287.133 (3)(a), Florida Statutes. J. DEBARMENT The SPONSOR certifies that no officer or agent of the SPONSOR has been debarred from bidding, proposing, or contracting for federal, state, or local government programs. The SPONSOR assures that all its subcontractors who will participate in activities, which are subject to this agreement, are eligible and have not been debarred. VIII. ADMINISTRATIVE REQUIREMENTS A. RECORDS TO BE MAINTAINED The SPONSOR shall maintain all records required by the COUNTY that are pertinent to the activities to be funded under this Agreement, as established in Exhibit B (Rental Acquisition Project Requirements). B. RETENTION The SPONSOR shall retain all records pertinent to expenditures incurred under this Agreement for a period of five (5) fiscal years after the funds have been expended and accounted for, provided applicable audits have been released.Notwithstanding the above, if there is litigation, claims, audits, negotiations or other actions that involve any of the records cited and that have started before the expiration of the five-year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the ten-year period, whichever occurs later. C. DISCLOSURE The SPONSOR shall maintain records in accordance with Florida's Public Information Law(F.S. 119). D. GRANT CLOSE PROCEDURE The SPONSOR'S obligation to the COUNTY shall not end until all closeout requirements are completed. Activities during this closeout period shall include, but not be limited to: making final payments, disposing of program assets (including the return of all unused materials, equipment, program income balances, and receivable accounts to the COUNTY), close out monitoring and determining the custodianship of records. In addition to the records retention outlined in Section VIII.B,the SPONSOR shall comply SHIP Rental Acquisition g 16011 with Section 119.021 Florida Statutes regarding records maintenance, preservation and retention. A conflict between state and federal law records retention requirements will result in the more stringent law being applied such that the record must be held for the longer duration. Any balance of unobligated funds which have been advanced or paid must be returned to the COUNTY. Any funds paid in excess of the amount to which the SPONSOR is entitled under the terms and conditions of this Agreement must be refunded to the COUNTY. The SPONSOR shall also produce records and information that complies with Section 215.97, Florida Single Audit Act. At the time of closeout, if not already done, the COUNTY shall secure a note and mortgage on the property for the amount of SHIP funds invested. The SPONSOR shall be responsible for ongoing reporting, subject to onsite monitoring, tenant income qualification activities and continued use for a period of 15 years. E. AUDITS AND INSPECTIONS 1. Audits Pursuant to Florida Statute 215.97(6)(Florida Single Audit Act), in the event that the SPONSOR expends a total amount of State awards equal to or in excess of $750,000 in any fiscal year of such SPONSOR, the SPONSOR must have a State single or project-specific audit for such fiscal year, in accordance with Section 215.97,Florida Statutes;applicable rules of the Executive Office of the Governor and the Comptroller, and Chapter 10.650, Rules of the Auditor General. In connection with these audit requirements, the SPONSOR shall ensure that the audit complies with the requirements of Section 215.97(7),Florida Statutes. This includes submission of a reporting package, as defined by Section 215.97(2)(d), Florida Statutes,and Chapter 10.650, Rules of the Auditor General.The financial reporting package must be delivered to the COUNTY within 45 days after delivery of the financial reporting package to the SPONSOR but no later than 180 days after the SPONSOR's fiscal year end. Submit the financial reporting package and Exhibit F to the Grant Coordinator. If the SPONSOR expends less than $750,000 in State awards in its fiscal year, an audit conducted in accordance with the provisions of Section 215.97, Florida Statutes, is not required. In the event that the SPONSOR expends less than $750,000 in State awards in its fiscal year and elects to have an audit in accordance with provisions of Section 215.97, Florida Statutes, the cost of the audit must be paid from non-State funds. 2. Inspections The SPONSOR'S records with respect to any matters covered by this Agreement shall be made available to the COUNTY and/or the FHFC at any time during normal business hours, as often as the COUNTY or the FHFC deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. SHIP Rental Acquisition 9 -) 16011 F. MONITORING The SPONSOR agrees that CHS will carry out no less than one (1) annual on-site monitoring visit and evaluation activities,as determined necessary,for a period of fifteen (15) years. 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 SPONSOR shall, upon the request of CHS, submit information and status reports required by CHS to enable CHS to evaluate said progress and to allow for completion of reports required. The SPONSOR shall allow CHS to monitor the SPONSOR on site. Such site visits may be scheduled or unscheduled, as determined by CHS. The COUNTY will monitor the performance of the SPONSOR 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 Agreement. Substandard performance, as determined by the COUNTY, will constitute noncompliance with this Agreement. If corrective action is not taken by the SPONSOR within a reasonable period of time after being notified by the COUNTY, contract suspension or termination procedures will be initiated. The SPONSOR agrees to provide the COUNTY, or the COUNTY's internal auditor(s) access to all records related to performance of activities in this agreement. G. CORRECTIVE ACTION Corrective action plans may be required for noncompliance, nonperformance, or unacceptable performance under this Agreement. Penalties may be imposed for failures to implement or to make acceptable progress on such corrective action plans. In order to effectively enforce Resolution 2013-228, Community and Human Services (CHS) Division has adopted an escalation policy to ensure continued compliance by subrecipients, sponsors, or any entity receiving grant funds from CHS. CHS'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 Division within 15 days following the monitoring visit. • Any pay requests that have been submitted to the Division for payment will be held until the corrective action plan has been submitted. • CHS 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 Division, the Division may require a portion of the awarded grant amount be returned to the Division. SHIP Rental Acquisition 10 16011 • The Division may require upwards of five percent (5%) of the awarded amount be returned to the Division, at the discretion of the CHS Director. • The entity may be considered in violation of Resolution 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 Division of their substantial non-compliance, by certified mail; the Division may require a portion of the awarded grant amount be returned to the Division. • The Division may require upwards of ten percent (10%) of the awarded amount be returned to the Division, at the discretion of the CHS Director. • The entity will be considered in violation of Resolution 2013-228 4, if in the case after repeated notification the Entity continues to be substantially non-compliant,the Division may recommend the contract or award be terminated. • The Division 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. • The entity will be considered in violation of Resolution No. 2013-228 If in the case the Entity has multiple agreements with the Division and is found to be non- compliant, the above sanctions may be imposed across all awards at the Director's discretion. H. PROGRESS REPORTS The SPONSOR shall submit regular Quarterly Progress Report (Exhibit E) to the COUNTY via Neighborly software database (https://portal.neighborlysoftware.com/ colliercountyfi/participant) in the form, content, and frequency required by the COUNTY. IX. CIVIL RIGHTS COMPLIANCE The SPONSOR agrees that no person shall, on the ground of race,creed,color, religion,national origin, sex, handicap, familial status, marital status, or age be excluded from the benefits of or subjected to discrimination under any activity carried out by the SPONSOR in performance of this Agreement. Upon receipt of evidence of such discrimination, the COUNTY shall have the right to terminate this Agreement. The SPONSOR will take affirmative action to ensure that all employment practices are free from such discrimination. Such employment practices include but are not limited to the following:hiring,upgrading,demotion,transfer,recruitment or recruitment advertising, layoff, termination, rate of pay or other forms of compensation, and selection for training, including apprenticeship. The SPONSOR agrees to post in conspicuous places, available to employees and applicants for employment,notices setting forth the provisions of this nondiscrimination clause. SHIP Renal Acquisition 11 '9 16011 X. PROHIBITED ACTIVITY The SPONSOR is prohibited from using funds provided herein or personnel employed in the administration of the program for: political activities; sectarian or religious activities; lobbying, political patronage, and nepotism activities. XI. SEVERABILITY OF PROVISIONS If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby,if such remainder would then continue to conform to the terms and requirements of applicable law. XII. AVAILABILITY OF FUNDS The parties acknowledge that the Funds originate from SHIP grant funds from FHFC and must be implemented in full compliance with all of SHIP rules and regulations and any agreement between COUNTY and FHFC governing FHFC funds pertaining to this Agreement. In the event of curtailment or non-production of said state funds, the financial sources necessary to continue to pay the SPONSOR all or any portions of the funds will not be available. In that event, the COUNTY may terminate this Agreement,which termination shall be effective as of the date that it is determined by the County Manager or designee, in his-her sole discretion and judgment,that the funds are no longer available. In the event of such termination,the SPONSOR agrees that it will not look to, nor seek to hold the COUNTY, nor any individual member of the County Commissioners and/or County Administration, personally liable for the performance of this Agreement,and the COUNTY shall be released from any further liability to the SPONSOR under the terms of this Agreement. XIII. DEFAULTS,REMEDIES,AND TERMINATION This Agreement may also be terminated for convenience by either the COUNTY or the SPONSOR, in whole or in part, by setting forth the reasons for such termination, the effective date,and,in the case of partial terminations,the portion to be terminated. However, if in the case of a partial termination, the COUNTY determined that the remaining portion of the award will not accomplish the purpose for which the award was made, the COUNTY may terminate the award in its entirety. The following actions or inactions by the SPONSOR shall constitute a Default under this Agreement: A. Failure to comply with any of the rules, regulations or provisions referred to herein, or such statutes,regulations,executive orders,and SHIP guidelines,policies or directives as may become applicable at any time; B. Failure, for any reason, of the SPONSOR to fulfill, in a timely and proper manner, its obligations under this Agreement; C. Ineffective or improper use of funds provided under this Agreement; SHIP Rental Acquisition 12 16011 D. Submission, by the SPONSOR to the COUNTY, of reports that are incorrect or incomplete in any material respect. E. Submission by the SPONSOR of any false certification; F. Failure to materially comply with any terms of this Agreement; G. Failure to materially comply with the terms of any other agreement between the COUNTY and the SPONSOR relating to the project. In the event of any default by the SPONSOR under this Agreement,the COUNTY may seek any combination of one or more of the following remedies; 1. Require specific performance of the Agreement, in whole or in part; 2. Require the use of,or change in, professional property management; 3. Require immediate repayment by the SPONSOR to the COUNTY of all SHIP • funds the SPONSOR has received under•this Agreement; 4. Apply sanctions, if determined by the COUNTY to be applicable; 5. Stop all payments, until identified deficiencies are corrected; 6. Terminate this Agreement by giving written notice to the SPONSOR of such termination and specifying the effective date of such termination. If the Agreement is terminated by the COUNTY as provided herein, the SPONSOR shall have no claim of payment or claim of benefit for any incomplete project activities undertaken under this Agreement. XIV. OPPORTUNITIES FOR RESIDENTS To the greatest extent feasible, lower-income residents of the project areas shall be given opportunities for training and employment; and to the greatest feasible extent eligible business concerns located in or owned in substantial part by persons residing in the project areas shall be awarded contracts in connection with the project.The SPONSOR is encouraged to comply with Section 3 of the Housing and Community Development Act of 1968. XV. OPPORTUNITIES FOR SMALL AND MINORITY/WOMEN OWNED BUSINESS ENTERPRISES The SPONSOR will use its best efforts to afford small businesses,minority business enterprises, and women owned business enterprises the maximum practicable opportunity to participate in the performance of this contract. As used in this contract, the terms "small business" means a • business that meets the criteria set forth in section 3(a) of the Small Business Act, as amended (15 U.S.C. 632),and "minority and women's business enterprise"means a business at least fifty- SHIP Rental Acquisition 13 CA 16011 one (51) percent owned and controlled by minority group members or women. For the purpose of this definition, "minority group members" are Afro-Americans, Spanish-speaking, Spanish surnamed or Spanish-heritage Americans, Asian-Americans, and American Indians. The SPONSOR may rely on written representations by businesses regarding their status as minority and female business enterprises, in lieu of an independent investigation. XVI. AFFIRMATIVE ACTION The SPONSOR agrees that it shall be committed to carry out pursuant to the COUNTY's specifications an Affirmative Action Program in keeping with the principles as provided in President's Executive Order 11246 of September 24, 1966. The COUNTY shall provide Affirmative Action guidelines to the SPONSOR to assist in the formulation of such program. Prior to the award of funds, the SPONSOR shall submit for approval, a plan for an Affirmative Action Program.The Affirmative Action Program will need to be updated throughout the fifteen- year affordability period and must be re-submitted to COUNTY within 30 days of each update/modification. XVII. CONFLICT OF INTEREST The SPONSOR 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 SPONSOR. The SPONSOR covenants that it will comply with all provisions of FL 287.057 "Conflict of Interest", and 2 CFR 200.318, and any additional State and County statutes,regulations, ordinance or resolutions governing conflicts of interest. Any possible conflict of interest on the part of the SPONSOR or its employees shall be disclosed, in writing,to CHS 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 very low-income residents of the project target area. The SPONSOR 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 SPONSOR. The COUNTY 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 the SPONSOR's ability to self-manage the projects using its own employees. XVIII.INCIDENT REPORTING If services to clients are to be provided under this agreement, the SPONSOR and any subcontractors shall report knowledge or reasonable suspicion of abuse, neglect, or exploitation of a child,aged person, or disabled adult to the COUNTY. SHIP Rental Acquisition 14 Cit 16011 XIX. RELIGIOUS ORGANIZATIONS State funds may be used by religious organizations or on property owned by religious organizations only in accordance with requirements set in Florida Statue, Chapter 196.011. The SPONSOR shall comply with First Amendment Church/State principles as follows: A. It will not discriminate against any employee or applicant for employment on the basis of religion and will not limit employment or give preference in employment to persons on the basis of religion. B. It will not discriminate against any person applying for public services on the basis of religion and will not limit such services or give preference to persons on the basis of religion. C. It will retain its independence from Federal, State and Local Governments and may continue to carry out its mission, including the definition, practice and expression of its religious beliefs,provided that it does not use direct State funds to support any inherently religious activities, such as worship, religious instruction or proselytizing. D. The funds shall not be used for the acquisition,construction or rehabilitation of structures to the extent that those structures are used for inherently religious activities. Where a structure is used for both eligible and inherently religious activities, SHIP funds may not exceed the cost of those portions of the acquisition, construction or rehabilitation that are attributable to eligible activities in accordance with the cost accounting requirements applicable to SHIP funds in this part. Sanctuaries, chapels, or other rooms that a SHIP funded religious congregation uses as its principal place of worship, however, are ineligible for SHIP funded improvements. XX. NATURAL DISASTER In the event of a natural disaster, this Agreement may be suspended or terminated and funds transferred to recovery activities as determined by the COUNTY. Funds subject to this provision shall be those that are not contractually committed for construction, design or other such third- party private vendors. XXI. ENFORCEMENT OF AGREEMENT The benefits of this Agreement shall inure to and may be enforced by the COUNTY for the duration of the Agreement, whether or not the COUNTY shall continue to be the holder of the Mortgage, whether or not the Project loan may be paid in full, and whether or not any bonds issued for the purpose of providing funds for the project are outstanding. The SPONSOR warrants that it has not, and will not, execute any other agreement with provisions contradictory to, or in opposition to, the provisions hereof, and that, in any event, the requirements of this Agreement are paramount and controlling as to the rights and obligations herein set forth and supersede any other requirements in conflict herewith. However,this shall not preclude the COUNTY from subordinating its loan to construction financing. SHIP Rental Acquisition 15 cA 16011 XXII. ACQUISITION, RELOCATION,AND DISPLACEMENT The SPONSOR acknowledges that the SPONSOR will bear sole responsibility for any costs or reimbursements, legal or otherwise, from person or persons claiming that they have been involuntarily displaced by the acquisition of real property associated with development of the Project. XXIII.COPYRIGHTS AND PATENTS If this Agreement results in a book or other copyright materials or patent materials, The SPONSOR may copyright or patent such, but Collier COUNTY and the State of Florida reserve a royalty-free, nonexclusive, and irrevocable license to reproduce,publish or otherwise use such materials and to authorize others to do so. XXIV.COUNTERPARTS OF THE AGREEMENT This Agreement, consisting of twenty-eight (28) enumerated pages and the exhibits and attachments referenced herein, shall be executed in two counterparts, each of which shall be deemed to be some original,and such counterparts will constitute one and the same instrument. XXV. ENTIRE UNDERSTANDING This Agreement and its provisions merge any prior agreements, if any, between the parties and constitute the entire understanding. The parties herby acknowledge that there have been and are no representations, warranties, covenants, or undertakings other than those expressly set forth herein. (Signature Page to Follow) SHIP Rental Acquisition 16 Cf} 16D11 IN WITNESS WHEREOF, the SPONSOR and the County, have each, respectively, by an authorized person or agent, hereunder set their hands and seals on the date first written above. ATTEST: fi , BOARD OF C• �` MISSIONERS OF CRYST Ki KIWZ4 LERK COLWO. FLORI O y. P, ut Cleric WI IAM L. Mc DANIEL,JR., A';e,t as 10 CH IRMAN • . I�3ture otdy Date: (PIas ) 1g (aM RESIDENTIAL OPTIONS OF FLORIDA, INC. Dated: (SEAL) By: 110. SHE' YL SOUKUP, " ECUTIVE DIRECTOR Date: 50iq Approved as to form .nd legality: I% 1 N Jennifer A. Belpedio ` 11\a Assistant County Attorney 9 Date: 6 a .S. I —1 !tem# ! 6 D 1 ( A�mda Date 1v-\I—it Gf Date 6,/,11 Rec'd Deputy Clerk SHIP Rental Acquisition 17 (17) 16 D 1 1 EXHIBIT A INSURANCE REQUIREMENTS The SPONSOR shall furnish to Collier County, c/o Community and Human Services Division, 3339 E. Tamiami Trail, Suite 211, Naples, Florida 34112, Certificate(s) of Insurance evidencing insurance coverage that meets the requirements as outlined below: 1, Workers' Compensation as required by Chapter 440, Florida Statutes. 2. Commercial General Liability, including products and completed operations insurance, in the amount of$1,000,000 per occurrence and $2,000,000 aggregate. Collier County must be shown as an additional insured with respect to this coverage. 3. Automobile Liability Insurance covering all owned, non-owned, and hired vehicles used in connection with this contract, in an amount not less than $1,000,000 combined single limit for combined Bodily Injury and Property Damage. DESIGN STAGE(IF APPLICABLE) In addition to the insurance required in 1 — 3 above, a Certificate of Insurance must be provided as follows: 4. Professional Liability Insurance, in the name of the SPONSOR or the licensed design professional employed by the SPONSOR, in an amount not less than $1,000,000 per occurrence/$1,000,000 aggregate providing for all sums which the SPONSOR and/or the design professional shall become legally obligated to pay as damages for claims arising out of the services performed by the SPONSOR or any person employed by the SPONSOR in connection with this contract. This insurance shall be maintained for a period of two (2) years after the certificate of Occupancy is issued. CONSTRUCTION PHASE(IF APPLICABLE) In addition to the insurance required in 1 — 4 above, the SPONSOR shall provide, or cause its Subcontractors to provide,original certificates indicating the following types of insurance coverage prior to any construction: 5. Completed Value Builder's Risk Insurance on an "All Risk" basis, in an amount not less than one hundred (100%)percent of the insurable value of the building(s) or structure(s), The policy shall be in the name of Collier County and the SPONSOR. 6. In accordance with the requirements of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4001), the SPONSOR shall assure that for activities located in an area identified by the Federal Emergency Management Agency(FEMA)as having special flood hazards,flood insurance under SHIP Rental Acquisition 1$ 16011 the National Flood Insurance Program is obtained and maintained, as a condition of financial assistance for acquisition or construction purposes (including rehabilitation). OPERATION/MANAGEMENT PHASE (IF APPLICABLE) After the Construction Phase is completed and occupancy begins,the following insurance must be kept in force throughout the duration of the loan and/or contract: 7. Workers' Compensation as required by Chapter 440,Florida Statutes. 8. Commercial General Liability including products and completed operations insurance in the amount of$1,000,000 per occurrence and $2,000,000 aggregate. Collier County must be shown as an additional insured with respect to this coverage. 9. Automobile Liability Insurance covering all owned, non-owned and hired vehicles used in connection with this contract in an amount not less than $1,000,000 combined single limit for combined Bodily Injury and Property Damage. 10, Property Insurance coverage on an "All Risk" basis, in an amount not less than one hundred (100%) of the replacement cost of the property. Collier County must be shown as a Loss payee, with respect to this coverage A.T.I.M.A. 11. Flood Insurance coverage for those properties found to be within a flood hazard zone,for the full replacement values of the structure(s)or the maximum amount of coverage available through the National Flood Insurance Program(NFIP).The policy must show Collier County as a Loss Payee A.T.I.M.A. SHIP Rental Acquisition 19 C3 1 6 D 1 1 EXHIBIT B RENTAL ACQUISITION PROJECT REQUIREMENTS RENTAL ACQUISITION ONLY The Project is to be developed as affordable residential rental housing in accordance with the SHIP Program and the Collier County LHAP FY 2016-2019. The SPONSOR shall perform the following activity under this agreement: a) Acquire rental property 1) Affordability of SHIP -Assisted Units: For the duration of the Affordability Period (15 years), as defined in the Note, Mortgage, and Land Use Restriction Agreement (LURA) of even date, a minimum of 1 unit in the Project shall be a SHIP-Assisted unit. All SHIP-Assisted units in the Project shall be fixed and rented or held available for rental on a continuous basis to persons or families who, at the commencement of occupancy shall have a verified annual income that does not exceed 80 percent of the Area Median Income (AMI), as defined by the Department of Housing and Urban Development (HUD) and Florida Housing Finance Corporation. Rents on these units shall be restricted to the SHIP Program rent limits. Maximum eligible income and rent limits are revised annually and are available from the COUNTY. The SPONSOR covenants that all of the units will be rented to income-eligible tenants as defined by the Department of Housing and Urban Development (HUD). Income Limits will be restrictive in accordance to HUD income limits for a minimum affordability period of fifteen(15) years from the date of tenant occupancy. All units carry rent and occupancy restrictions until June 30,2036,which remain in force regardless of transfer of ownership. SHIP-Assisted units shall be reserved for and rented to households which qualify for the following: SHIP-Assisted Units According to Income Limits Income Limits Number SHIP-Assisted Units 80% - Low I Total of Units (Minimum) 1 *Units divided into income category according to SHIP-Assisted units under affordability period. A household income will be determined by the number of persons listed on each executed lease agreement. The combined rent of each tenant of a single unit cannot exceed the SI-IIP Program rent limits. This Agreement incorporates, by reference, terms and conditions described in the Mortgage, Note and Land Use Restriction Agreement of even date and any other agreements enforcing the SHIP requirements associated with said loan documents. The budget for the Project is estimated to be THREE HUNDRED THOUSAND DOLLARS ($300,000) is provided by the COUNTY through the SHIP PROGRAM. Project acquisition will commence and be completed as defined and set forth in the affordable housing development schedule incorporated by reference. In no event will acquisition be completed later than June 30, 2020. Acquisition will progress in accordance with the deliverable schedule submitted by the SPONSOR to obtain financing. SHIP Rental Acquisition 2Q (� 16011 The SPONSOR shall submit evidence of mortgagee title insurance prior to the closing of the County's acquisition loan, which conforms to the following specifications: A paid title insurance policy, in form and content, with a company acceptable to the County, insuring that the Mortgage Loan Documents (as defined in the Note) constitute a valid position lien on the Property, free and clear of all defects and encumbrances, and containing: a) no survey exceptions, other than those heretofore approved by the County; b) coverage to the extent of any disbursement of the Loan together with a pending disbursements clause, in form and substance, satisfactory to the Lender and its counsel; and c) Zoning coverage—As applicable The SPONSOR shall provide evidence of annual renewals of insurance coverage during the period of affordability. 2) Compliance: The SPONSOR shall determine and verify the income eligibility of tenants in accordance with HUD housing assistance programs in 24 CFR Part 5 for the Project. Income shall be calculated by annualizing verified sources of income for the household as the amount of income to be received by a household, during the 12 months, following the effective date of the determination. The Annual Gross Income, as defined in Section 420.9071(4), F.S, must be used and the SHIP Program income limits cannot be exceeded. The SPONSOR shall maintain complete and accurate income records pertaining to each tenant occupying a SHIP-assisted unit. Onsite inspections will be conducted annually upon reasonable prior written notice to verify compliance with tenant income, rents and the minimum property standards as stated in Section 420.907-420.9079, Florida Statutes and Rule 67-37, Florida Administrative Code, as they may be amended from time to time. 3) Restriction on Use: The SPONSOR is required to comply with all applicable program requirements of the State Housing Initiatives Partnership (SHIP) Program, including but not limited to Section 420.907-420.9079, Florida Statutes; and Rule 67-37, Florida Administrative Code. Any or all of these regulations may, but are not required to, be specifically set forth in any additional loan documents executed in connection with the Loan. The SPONSOR shall include such language as the COUNTY may require in any agreements with prospective tenants of the Project,or any portion,thereof to evidence such requirements. 4) Default of Mortgage: The Mortgage and Note shall provide that a default shall occur if: a. Sale; if proceeds are not sufficient to pay off the mortgage note, then the property owner (not-for-profit or for profit) may contact the County regarding a settlement amount of the SHIP loan. b. Title transfer, either voluntarily or by operation of law, divested of title by judicial sale, levy or other proceedings, including foreclosure or Deed in Lieu. c. Refinance; a refinance of the first mortgage may be approved without repayment if the request is submitted in writing and the refinance is at a lower fixed rate, with no cash out, in accordance with the"Subordination Policy". SHIP Rental Acquisition 21 16011 d. Property will no longer serve the intended target population. e. Repayment of the loan is required in full when any of the aforementioned conditions is met, whichever occurs first. Other defaults may trigger repayment,if not cured within any applicable cure or notice period following a monitoring. f. Lack of compliance by the SPONSOR with the State statutes or County Codes,which has not been corrected within thirty days of written notice from the COUNTY; g. The SPONSOR has not begun to offer minimum of one(1)affordable rental housing to extremely low, very-low and low-income families and individuals, in accordance with the provisions of Section a) 1) of Exhibit B on or before June 30,2020; h. The SPONSOR abandons, and/or ceases to use the Property as affordable rental housing to tenants, without the prior written approval of the County. 5) Assurance of Public Purpose: The SPONSOR covenants that if the SPONSOR is unable or unwilling to develop the property in accordance with the terms and conditions incorporated herein, no lease, sale, or title transfer to any third party shall occur prior to giving the COUNTY, a 90 (Ninety) day notification, during which time- the COUNTY shall have the right, solely at the COUNTY'S discretion, to purchase or find another SPONSOR to purchase the Project, in order to carry out the eligible activities of the SHIP Program, for an amount not to exceed the amount of funds provided by the COUNTY through the Program. 6) Non-compliance includes, but is not limited to: a. Failure to maintain commitments in the Regulatory Agreement including: • Low-income set aside percentage requirements • Failure to respond to request for monitoring reviews b. Failure to document lower-income occupancy, including: • Lack of verification of income • Certification or recertification of household members • Non-disclosure of all income on Tenant Income Certifications • Incomplete Tenant Income Certifications • Undisclosed occupants in unit • Failure by owner to submit annual certification and/or other required reports 7) Affirmative Marketing: The SPONSOR shall adopt appropriate procedures for affirmatively marketing the SHIP-assisted units. Affirmative marketing consists of good faith efforts to provide information and otherwise to attract to the available housing, eligible persons from all racial, . ethnic and gender groups in the housing market area.The SPONSOR shall be required to use affirmative fair housing marketing practices in soliciting renters, determining eligibility, concluding transactions, and affirmatively further fair housing efforts. The SPONSOR must maintain a file containing all marketing efforts (i.e. copies of newspaper ads, memos of phone calls, copies of letters, etc.) to be available for inspection on request by the COUNTY. The SPONSOR must provide a description of intended actions that will inform and otherwise attract eligible persons from all racial,ethnic,and gender groups in the housing market of the available housing. The SPONSOR must provide the COUNTY with SHIP Rental Acquisition 22 0 16011 an assessment of the affirmative marketing program. Assessment must include: a) methods used to inform the public and potential renters about federal fair housing laws and affirmative marketing policy, b)methods used to inform and solicit applications from persons in the housing market who are not likely to apply without special outreach; and c) records describing actions taken by the participating entity and/or owner to affirmatively market units; and records to assess the results of these actions. 8) Tenant Leases and Protections: Tenants applying for rental housing units shall be qualified on a first-qualified,first-served basis. Tenants must be income-eligible. The SPONSOR shall comply with the provisions of the Florida Landlord Tenant Act defined in Chapter 83 Part II of the Florida Statutes, SHIP Program, and COUNTY requirements, which prohibit certain lease terms. All tenant leases for assisted units shall be expressly subordinate to the Mortgage and shall contain clauses, among others, wherein each individual lessee: A. Agrees that the household income, household composition, and other eligibility requirements shall be deemed substantial and material obligations of the tenancy;that the tenant will comply promptly with all requests for information with respect thereto from the SPONSOR or the COUNTY,and that tenant's failure to provide accurate information about household income or refusal to comply with a request for information with respect thereto shall be deemed a violation of a substantial obligation of his/her tenancy; and B. Agrees not to sublease to any person or family who does not meet income qualifications as determined, verified, and certified by the SPONSOR; and C. States that the rental unit is the primary residence of the tenant; and D. Agrees that the lease shall be for a one-year period,unless other terms are mutually agreed upon by the SPONSOR and tenant. E. Documentation of request of special needs. The SPONSOR will submit to the COUNTY, a copy of the tenant/owner lease agreement. Prior to the signing by the tenant,the lease will be reviewed for compliance with affirmative marketing, tenant selection and SHIP provisions stated in Section 420.907-420.9079, Florida Statues and Rule 67-37, Florida Administrative Code. 9) Project Requirements: The SPONSOR agrees to not undertake any activity that may adversely affect historic or environmental sensitivity of the site and to mitigate any findings identified in an environmental assessment. The SPONSOR agrees that in the event the Project is located in a Designated Flood Zone, all government requirements for construction in a flood zone shall be satisfied. The SPONSOR shall develop and submit to CHS, within 60 days of contract execution, an acquisition schedule to include the following: Project acquisition will commence and be completed in accordance with the schedule submitted and in no event will acquisition commence later than 120 days from the date of this Agreement nor will the project be completed later than June 30,2021 Further, "project completion date" will mean issuance of all certificates of occupancy and completion of initial lease-up. SHIP Rental Acquisition 23 1J 16D11 10) Property Standards: The SPONSOR attests that the Project will meet the standards of the Florida Building Code and all applicable local codes, standards, ordinances, and zoning ordinances at the time of project completion and throughout the duration of the affordability period. The Project will also meet the accessibility requirements at 24 CFR part 8, which implements Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and covered multifamily dwellings, as defined at 24 CFR 100.201, and the design and construction requirements at 24 CFR 100.205, which implement the Fair Housing Act(42 U.S.C. 3601-3619), in the event property rehabilitated at any time during affordability period. In accordance with the Local Housing Assistance Plan, a SPONSOR shall follow each SHIP Program strategy program requirements below: 11) Energy Efficient Best Practices: Section 420.9075(3)(d), F.S. defines Energy Efficient Best Practices as: Innovative design, green building principles, storm resistant construction, or other elements that reduce long term costs relating to maintenance, utilities,or insurance in the event property rehabilitated at any time during affordability period. Collier County requires the use or inclusion, when appropriate, of the following: energy star appliances: low-E windows, additional insulation (for increased R-value), ceramic tile, tank-less water heater; 14 and 15 SEER air conditioning units, stucco, florescent light bulbs, and impact resistant windows and doors. 12) Property Management. The COUNTY reserves the right to require the SPONSOR to enter into a contract with a property management firm approved by the COUNTY, for professional management services for the Property providing for leasing,collection of rents,maintenance, and repair of Property, and other property management tasks as the COUNTY may require in the event the SPONSOR is failing to meet tenant needs. Such contract shall stipulate that the contract will not be amended or terminated without prior written consent of the COUNTY. SHIP Rental Acquisition 24 0 16011 EXHIBIT C BUDGET NARRATIVE RENTAL ACQUISITION PROGRAM The total SHIP allocation to the SPONSOR for the Rental Acquisition Program shall not exceed THREE HUNDRED THOUSAND DOLLARS ($300,000.00). Sources for these favids are as follows. Fiscal Year Rental Acquisition Total 2018-2019 $300,000.00 $300,000.00 Total Funds $300,000.00 $300,000.00 Uses of these funds are as follows: Funds shall be disbursed in the following manner for the following uses: 1. Acquisition expenditure shall not exceed $300,000.00 per property acquired. 2. Funds will be disbursed via wire transfer at the time of closing. SHIP Rental Acquisition 25 o 16D11 EXHIBIT D PROJECT DELIVERABLES Report Title Documentation Required Due Date Special Grant Policies See Section III, B Within 60 days of contract execution. Project Schedule See Section III, A Within 60 days of contract execution. Insurance Proof of coverage in At time of Acquisition and (Flood, Property, O&D) accordance with Exhibit A/ annually within 30 days after Declaration page renewal,prior to the SPONSOR'S fiscal year until full lease up for 15 years. SPONSOR Audit Audit report, Management Within 9 months for Single Letter and Exhibit F Audit (otherwise 180 days) after the end of the SPONSOR fiscal year until full lease up for 15 years. Progress Report Progress report, detailing 10 days after the end of the accomplishments calendar quarter until June 30, 2021 and until full lease up for 15 years. Tenant Lease Agreement Lease Submit prior to signing by first tenant and any addendums or changes thereafter until full lease up for 15 years. Operating Expense Report Actual vs. Budget, revenue and Initial report due after lease up expense report and all and annually thereafter, prior to supporting documentation, as the SPONSOR'S fiscal year requested until full lease up for 15 years. Operating Expense Budget Detailed Operating budget for Initial report due after lease up Report the next fiscal year and annually thereafter, prior to the SPONSOR'S fiscal year until full lease up for 15 years. Capital Needs Assessment Plan approved by the COUNTY Initial Plan due after lease up and annually thereafter until full lease up for 15 years. Maintenance Plan Plan approved by the COUNTY At the time of acquisition and annually thereafter until full lease up for 15 years. Register of Tenant Income and Summary of Tenant Income At time of full lease up and Rent and Income Limit, Rent and annually thereafter until full Rent Limit, by unit(Rent Roll) lease up for 15 years. Maintenance Agreement Executed Agreement Initial lease up and annually thereafter until full lease up for 15 years. SHIP Rental Acquisition 26 16011 EXHIBIT"E" QUARTERLY PROGRESS REPORT Complete form for preceding quarter and submit to Community and Human Services staff by the I'of the following quarterly month. Status Report for the Quarter Ending: Submittal Date: Project Name: Project Number: SPONSOR: Contact Person: Telephone: Fax: E-mail: PROPERTY UNIT DATA Number of units under rehab this period Number of units completed this period Number of units completed to date EXPENDITURE DATA Amount of funds expended this period Amount of funds expended to date New Contracts executed this period Name of Contractor Address Amount of Contract Income Date Client Income Category Income Amount What events/actions are scheduled for the next month? Identify any issues that may cause delay in meeting scheduled expenditure deadline dates. Date Signature SHIP Rental Acquisition 27 GQ` 16011 EXHIBIT F ANNUAL AUDIT MONITORING REPORT Circular 2 CFR Part 200.331 requires Collier County to monitor subrecipients of federal awards to determine if subrecipients are compliant with established audit requirements(Subpart F). Accordingly, Collier County requires that all appropriate documentation is provided regarding your organization's compliance. In determining Federal awards expended in a fiscal year, the entity must consider all sources of Federal awards based on when the activity related to the Federal award occurs, including any Federal award provided by Collier County. The determination of amounts of Federal awards expended shall be in accordance with the guidelines established by established by 2 CFR Part 200, Subpart F—Audit Requirements. This form may be used to monitor Florida Single Audit Act(Statute 215.97) requirements. Subrecipient Name First Date of Fiscal Year(MM/DD/YY) Last Date of Fiscal Year(MM/DD/YY) Total Federal Financial Assistance Expended Total State Financial Assistance Expended during during most recently completed Fiscal Year most recently completed Fiscal Year $ $ Check A. or B. Check C if applicable A. The federal/state expenditure threshold for our fiscal year ending as indicated above has ❑ been met and a Single Audit as required by 2 CFR Part 200, Subpart F has been completed or will be completed by _ . Copies of the audit report and management letter are attached or will be provided within 30 days of completion. B. We are not subject to the requirements of OMB 2 CFR Part 200, Subpart F because we: ❑ Did not exceed the expenditure threshold for the fiscal year indicated above ❑ Are a for-profit organization ❑ Are exempt for other reasons—explain An audited financial statement is attached and if applicable, the independent auditor's management letter. C. Findings were noted, a current Status Update of the responses and corrective action plan is included separate from the written response provided within the audit report. While we ❑ understand that the audit report contains a written response to the finding(s), we are requesting an updated status of the corrective action(s) being taken. Please do not provide just a copy of the written response from your audit report, unless it includes details of the actions, procedures, policies, etc. implemented and when it was or will be implemented. Certification Statement I hereby certify that the above information is true and accurate. Signature Date Print Name and Title 06/18 SHIP Rental Acquisition 28 � w� I