HomeMy WebLinkAboutContract 1685Grant No.
METROPOLITAN LIVABLE COMMUNITIES ACT
LOCAL HOUSING INCENTIVES ACCOUNT
GRANT AGREEMENT
THIS GRANT AGREEMENT is made and entered into by the Metropolitan Council ("Council")
and the City of Columbia Heights ("Grantee").
WHEREAS, Minnesota Statutes section 473.251 creates the Metropolitan Livable Communities
Fund, the uses of which fund must be consistent with and promote the purposes of the Metropolitan
Livable Communities Act and the policies of the Metropolitan Development Guide adopted by the
Council; and
WI:IEREAS, Minnesota Statutes sections 473.251 and 473.254 establish within the Metropolitan
Livable Communities Fund a Local Housing Incentives Account and require the Council to
annually distribute funds in the account to participating municipalities that have not met their
affordable and life-cycle housing goals, as determined by the Council, and are actively funding
projects designed to help meet the goals, or to development authorities for projects located in
eligible municipalities; and
WHEREAS, the Grantee is a "municipality" as defined in Minnesota Statutes section 473.254,
subdivision 6 which has negotiated affordable and life-cycle housing goals pursuant to Minnesota
Statutes section 473.254, subdivision 2 and has elected to participate in the Local Housing
Incentives Account program, or is a "development authority" as defined in Minnesota Statutes
section 473.254, subdivision 6; and
WHEREAS, the municipality within which the project is located has not yet met its affordable and
life-cycle housing goals as determined by the Council and is actively funding projects designed to
help meet the goals; and
WHEREAS, the Grantee agrees to provide the grant funds made available under this agreement to
help fund a project identified in an application for affordable housing funds submitted in response to
a Request for Proposals issued in December 2001 by the Metropolitan Housing Implementation
Group; and
WHEREAS, at its May 22, 2002 regular meeting, the Council awarded Local Housing Incentives
Account funds to certain municipalities or development authorities that submitted grant applications
in response to the December 2001 Request for Proposals, including the Grantee.
NOW THEREFORE, in consideration of the mutual promises and covenants contained in this
agreement, the Grantee and the Council agree as follows:
Page 1 of 7 Pages
I. DEFINITIONS
1.01 Def'mition of Terms. For the purposes of this agreement, the terms defined in this paragraph
have the meanings given them in this paragraph unless otherwise provided or indicated by the
context.
(a) "D~evelopment Authority" means a housing and redevelopment authority, economic
development authority, or port authority.
Co) "Metropolitan Area" means the seven-county metropolitan area as defined by Minnesota
Statutes section 473.121, subdivision 2.
(c) "Municipality" means a statutory or home rule charter city or town in the Metropolitan Area.
(d) "Participating Municipality" means a Municipality electing to participate in the Local
Housing Incentives Account program under Minnesota Statutes section 473.254.
II. GRANT FUNDS
2.01 Total Grant Amount. The Council will grant to the Grantee a total sum of $25,000.00 which
shall be funds from the Local Housing Incentives Account of the Metropolitan Livable
Communities Fund. Notwithstanding any other provision of this agreement, the Grantee
understands and agrees that any reduction or termination of Local Housing Incentives Account
funds made available to the Council, or any reduction or termination of the dollar-for-dollar match
amount required under paragraph 2.02, may result in a like reduction to the Grantee.
2.02 Match Requirement. Pursuant to Minnesota Statutes section 473.254, subdivision 6, the
Grantee shall match on a dollar-for-dollar basis the total grant amount received from the Council
under paragraph 2.01. The source and amount of the dollar-for-dollar match shall be identified by
the Grantee in the report(s) required under paragraph 3.03.
2.03 Authorized Use of Grant Funds. The total grant amount made available to the Grantee
under this agreement shall be used only for the purposes and activities described in the application
for Local Housing Incentives Account funds. A copy of the project summary that identifies eligible
uses of the grant funds and was approved by the Council is attached to and incorporated into this
agreement as Attachment A. Grant funds must be used for purposes consistent with Minnesota
Statutes section 473.25(a), in a Participating Municipality. Grant funds must be used for costs
directly associated with the specific proposed activities and are intended to be used for "hard costs"
rather than "sott costs" such as: administrative overhead; activities prior to the start of the grant
project; travel expenses; legal fees; permits, licenses or authorization fees; costs associated with
preparing other grant proposals; operating expenses; planning costs, including comprehensive
planning costs; and prorated lease and salary costs. If consistent with the application and the project
summary in Attachment A, the Grantee may use the grant funds to make deferred loans (loans made
without interest or periodic payments), revolving loans (loans made with interest and periodic
payments) or othenvise make the grant funds available on a "revolving" basis for the purposes of
implementing the project activities described in Attachment A. The Council shall bear no
responsibility for cost overruns which may be incurred by the Grantee or others in the
implementation or performance of the project activities described in Attachment A. The Grantee
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agrees to remit to the Council in a prompt manner: any unspent grant funds; any grant funds which
are-not used for the authorized purposes specified in this paragraph; any grant funds that are not
matched on a dollar-for-dollar basis as required by paragraph 2.02; any interest earnings described
in paragraph 2.06 that are not used for the purposes of implementing the project activities described
in Attachment A; and any "revolved" funds described in paragraph 2.06 that are not used by the
Grantee to implement affordable and life-cycle housing initiatives pursuant to paragraph 2.06.
2.04 Budget Variance. A variance of ten percent (10%) in the amounts allocated to various
eligible uses identified in Attachment A shall be considered acceptable without further
documentation or Council approval. Budget variances exceeding ten percent (10%) may require
approval of the governing body of the Metropolitan Council. Notwithstanding the aggregate or net
effect of any variances, the Council's obligation to provide grant funds under this agreement shall
not exceed the maximum grant amount specified in paragraph 2.01 of this agreement.
2.05 Disbursement Schedule. The Council will disburse the grant funds to the Grantee in
accordance with the grant fund disbursement schedule contained in Attachment B, which is
incorporated into and made a part of this agreement. The Council will make disbursements only
upon receipt of a written disbursement request from the Grantee's authorized agent or
representative.
2.06 Interest Earnings and Revolved Funds. If the Grantee earns any. interest or other income
from the grant funds received from the Council under this agreement, the Grantee will use the
interest earnings or income only for the purposes of implementing the project activities described in
Attachment A. If the Grantee uses the grant funds on a "revolving" basis or otherwise receives
revolved funds from the project activities described in Attachment A, the Grantee must: (a) use the
revolved funds to implement similar eligible projects that will help the Grantee meet its affordable
and life-cycle housing goals and implement the purposes of Minnesota Statutes sections 473.25 and
473.254; or (b) return the revolved funds to the Council for use with other eligible projects. The
Grantee shall report to the Council any revolved funds received by the Grantee and the Grantee's
uses of those revolved funds.
2.07 Effect of Grant Issuance of this grant neither implies any Council responsibility for
contamination, if any, at the project site nor imposes any obligation on the Council to participate in
any pollution cleanup of the project site if such cleanup is undertaken or required.
2.08 Resale Limitations. The Grantee is required to impose resale limitations regarding the
disposition of any equity realized by the purchasers of "affordable" units if Minnesota Housing
Finance Agency ("MHFA") funds and grant funds received from the Council under this agreement
are used for gap financing in the project described in Attachment A. The intent of this resale
limitation is to protect the public investment in the project and ensure that a proportion of the
affordability gap provided by the public investment in the form of MI-IFA funds or grant funds
received from the Council under this agreement is recaptured for reuse in conjunction with other
affordable housing efforts and does not become a windfall for any purchaser who might sell the
home within a predetermined and agreed upon time period of ownership. An equitable proportion
of the affordability gap filled by MHFA funds and grant funds received from the Council under this
agreement must be returned to the granting agency if a purchaser sells the "affordable" home within
a certain time frame. The length of the ownership time period and the proportion of the affordability
gap to be recovered will be agreed upon by the Grantee, the MHFA and the Council so that the
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MHFA funds and the grant funds received from the Council under this agreement may be recycled
to support additional affordable housing opportunities.
IlL 'ACCOUNTING, AUDIT AND REPORT REQUIREMENTS
3.01 Accounting and Records. The Grantee agrees to establish and maintain accurate and
comple~te accounts and records relating to the receipt and expenditure of all grant funds received
from the Council. Notwithstanding the expiration and termination provisions of paragraphs 4.01
and 4.02, such accounts and records shall be kept and maintained by the Grantee for a period of six
(6) years following the completion of the project activities described in Attachment A or six (6)
years following the expenditure of the grant funds, whichever occurs earlier. For all expenditures of
grant funds received pumuant to this agreement, the Grantee will keep proper financial records
including invoices, contracts, receipts, vouchers and other appropriate documents sufficient to
evidence in proper detail the nature and propriety of the expenditure. The Grantee also will keep
proper financial records and other appropriate documents sufficient to evidence the nature and
expenditure of the dollar-for-dollar match funds required under paragraph 2.02. Accounting
methods shall be in accordance with generally accepted accounting principles.
3.02 Audits. The above accounts and records of the Grantee shall be audited in the same manner
as all other accounts and records of the Grantee are audited and may be audited or inspected on the
Grantee's premises or otherwise by individuals or organizations designated and authorized by the
Council at any time, following reasonable notification to the Grantee, for a period of six (6) years
following the completion of the project activities described in Attachment A or six (6) years
following the expenditure of the grant funds, whichever occurs earlier.
3.03 Report Requirements. The Grantee will provide to the Council one or more written reports
which report on the status of the project activities described in Attachment A, the expenditures of
the grant funds, and the source and expenditure of the dollar-for-dollar match funds required under
paragraph 2.02. The reporting schedule and the content of the written report(s) are identified in
Attachment C, which is incorporated into and made a part of this agreement.
3.04 Environmental Site Assessment. The Grantee represents that a Phase I Environmental Site
Assessment or other environmental review has been or will be carried out, if such environmental
assessment or review is appropriate for the scope and nature of the project activities funded by this
grant, and that any environmental issues have been or will be adequately addressed.
IV. AGREEMENT TERM
4.01 Term. This agreement is effective upon execution of the agreement by the Council. Unless
terminated pursuant to paragraph 4.02, this agreement expires December 31, 2003.
4.02 Termination. This agreement may be terminated by the Council for cause at any time upon
fourteen (14) calendar days' written notice to the Grantee. Cause shall mean a material breach of
this agreement and any amendments of this agreement. If this agreement is terminated, the Grantee
shall receive payment on a pro rata basis for project activities described in Attachment A that have
been completed. Termination of this agreement does not alter the Council's authority to recover
grant funds on the basis of a later audit or other review, and does not alter the Grantee's obligation
to return any grant funds due to the Council as a result of later audits or corrections. If the Council
Page 4 of 7 Pages
determines the Grantee has failed to comply with the terms and conditions of this agreement and the
applicable provisions of the Metropolitan Livable Communities Act, the Council may take any
action to protect the Council's interests and may refuse to disburse additional grant funds and may
require the Grantee to return all or part of the grant funds already disbursed.
4,03 Amendments. The Council and the Grantee may amend this agreement by mutual agreement.
Amendments,~ changes or modifications of this agreement shall be effective only on the execution of
written amendments signed by authorized representatives of the Council and the Grantee.
V. GENERAL PROVISIONS
5.01 Equal Opportunity. The Grantee agrees it will not discriminate against any employee or
applicant for employment because of race, color, creed, religion, national origin, sex, marital status,
status with regard to public assistance, membership or activity in a local civil rights commission,
disability, sexual orientation or age and will take affirmative action to insure applicants and
employees are treated equally with respect to all aspects of employment, rates of pay and other
forms of compensation, and selection for training.
5.02 Conflict of Interest The members, officers and employees of the Grantee shall comply with
all applicable state statutory and regulatory conflict of interest laws and provisions.
5.03 Liability. Subject to the limitations provided in Minnesota Statutes chapter 466, to the fullest
extent permitted by law, the Grantee shall defend, indemnify and hold harmless the Council and its
members, employees and agents from and against all claims, damages, losses and expenses,
including but not limited to attorneys' fees, arising out of or resulting from the conduct or
implementation of the project activities funded by this grant, except to the extent the claims,
damages, losses and expenses arise from the Council's own negligence. Claims included in this
indemnification include, without limitation, any claims asserted pursuant to the Minnesota
Environmental Response and Liability Act (MERLA), Minnesota Statutes chapter 115B, the federal
Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) as
amended, 42 U.S.C. sections 9601 et seq., and the federal Resource Conservation and Recovery Act
of 1976 (RCRA) as amended, 42 U.S.C. sections 6901 etseq. This obligation shall not be construed
to negate, abridge or otherwise reduce any other right or obligation of indemnity which otherwise
would exist between the Council and the Grantee. The provisions of this paragraph shall survive the
termination of this agreement. This indemnification shall not be construed as a waiver on the part
of either the Grantee or the Council of any immunities or limits on liability provided by Minnesota
Statutes chapter 466, or other applicable state or federal law.
5.04 Acknowledgments. The Grantee shall acknowledge the financial assistance provided by the
Council in promotional materials, press releases, reports and publications relating to the project
activities described in Attachment A which are funded in whole or in part with the grant funds. The
acknowledgment should contain the following language:
Financing for this project was provided by the Metropolitan Council Metropolitan
Livable Communities Fund.
Until the project activities funded by this agreement are completed, the Grantee shall ensure the
above acknowledgment language, or alternative language approved by the Council's authorized
Page 5 of 7 Pages
agent, is included on all signs located at project or construction sites that identify project sponsors
or entities providing financial support for the project.
5.05 Permits, Bonds and Approvals. The Council assumes no responsibility for obtaining any
applicable local, state or federal licenses, permits, bonds, authorizations or approvals necessary to
perform or complete the project activities described in Attachment A.
5.06 Contractors and Subcontractors. The Grantee shall include in any contract or subcontract
for project activities appropriate contract provisions to ensure contractor and subcontractor
compliance with all applicable state and federal laws. Along with such provisions, the Grantee shall
require that contractors and subcontractors performing work covered by this grant comply with alt
applicable state and federal Occupational Safety and Health Act regulations.
5.07 Stormwater Discharge Requirements. If any grant funds are used for urban site
redevelopment, the Grantee shall at such redevelopment site meet or require to be met:
all requirements of federal and state law relating to stormwater, discharges including, without
limitation, any applicable requirements of title 40, Code of Federal Regulations, parts 122 and
123; and
any additional requirements of the Council's Interim Strategy to Reduce Nonpoint Source
Pollution to All Metropolitan Water Bodies (1992) including, without limitation: (1) the
requirement to utilize the Minnesota Pollution Control Agency's urban best management
practices entitled Protecting Water Quality in Urban Areas; and (2) the requirement that all
stormwater must be pretreated by facilities designed to provide pollutant removal efficiencies
equal to or greater than those observed in wet-detention basin facilities designed in accordance
with the National Urban Runoff Program (NURP) design criteria.
5.08 Attachments. The following are attached to this agreement and are incorporated into and
made a part of this agreement:
(a) Attachment A - Summary of the project activity and budget provisions of the application for
Local Housing Incentives Account funds
(b) Attachment B - Grant Fund Disbursement Schedule
(c) Attachment C - Written Report Submission Schedule
5.09 Warranty of Legal Capacity. The individuals signing this agreement on behalf of the
Grantee and on behalf of the Council represent and warrant on the Grantee's and the Council's
behalf respectively that the individuals are duly authorized to execute this agreement on the
Grantee's and the Council's behalf respectively and that this agreement constitutes the Grantee's
and the Council's valid, binding and enforceable agreements.
IN WITNESS WHEREOF, the Grantee and the Council have caused this agreement to be
executed by their duly authorized representatives. This agreement is effective on the date when
both parties have finally executed this document.
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Approved as to form:
Associato~Jonoral Counsel
METROPOLITAN COUN~C~IL ~,
By ~~~ ~// ....
Eli~be~ J. ~y~~or
Hous~g ~d Li~~ti~
Date ~. x~ _ ~
CITY OF COLUMBIA ItEIGHTS
,y
W alt FehsS~Ci~anager
Date
MC 06/0~
Page 7 of 7 Pages
ATTACHMENT A
APPLICATION FOR LOCAL HOUSING INCENTIVES ACCOUNT FUNDS
This attachment comprises this page and page .4-1 and contains a summary of the project identified
in the ~pplication for Local Housing Incentives Account grant funds submitted in response to a
Request for Proposals issued in December 2001 by the Metropolitan Housing Implementation
Group. The summary reflects the Grantee's proposed project as approved by the Council on May
22, 2002 and may reflect changes in project funding sources, changes in funding mounts, or minor
changes in the proposed project that occurred subsequent to application submission. The application
is incorporated into this grant agreement by reference and is made a part of this grant agreement as
follows. If the application or any provision in the application conflicts with or is inconsistent with
other provisions of this agreement or the project summary contained in this Attachment A, the
terms, descriptions and dollar mounts contained in this grant agreement and the project summary
contained on page .4-1 shall prevail.
Greater Minneapolis Metropolitan Housing Corporation (GMMHC) - City of
Columbia Heights - Rehab Incentive Program
LHIA Award: $25,000
The grant will administer a rehab incentive program in the city of Columbia Heights. This
model is based on the successful (rehab incentive) program currently administered by
GMMHC out of its Housing Resource Center. The program provides a cash rebate to
homeowners who complete home improvement projects. This rebate is part of the
rehabilitation work and is not a cash payment to the homeowner. The rebate is
calculated as a percentage of the improvement work - 15 percent for homeowners at or
below 50 percent of median income, 12 percent for those at or below 80 percent, and 10
percent for those with an income between 80 and 115 percent of median income. The
maximum rebate is $3,000. This program is expected to generate approximately
$340,000 in home rehabilitation. Approximately 27 households are expected to be
served.
ATTACHMENT B
GRANT FUND DISBURSEMENT SCHEDULE
The total grant amount specified in paragraph 2.01 of this agreement shall be disbursed to the
Grante~ for uses consistent with this agreement according to the following schedUle:
The Council will disburse grant funds in response to written disbursement requests
submitted by the Grantee and reviewed and approved by the Council. Written
disbursement requests shall indicate the project activity funded by this. agreement,
the contractor(s)/vendor(s) to be paid, and the time period within which the project
activity was or will be performed. Disbursements prior to the performance of a
project activity will be subject to terms and conditions mutually agreed to by the
Council's authorized agent and the Grantee. Individual disbursement requests should
specify the,project or activity to be funded and identify dollar amounts by project or
activity. Subject to verification of a written disbursement request and approval for
consistency with this agreement, the Council will disburse a requested amount to the
Grantee within two (2) weeks after receipt of a written disbursement request.
ATTACHMENT C
WRITTEN REPORTS AND SUBMISSION SCHEDULE
Beginning three (3) months aider the Grantee initially receives grant funds, the Grantee shall submit
to the (~ouncil written quarterly reports which shall contain at least the following elements:
A summary description of the grant funds received and expended to date, including a
description of the purposes or uses for which the grant funds were expended, and an itemized
list of all project costs and sources of funds used to cover the project costs.
A summary of the required dollar-for-dollar match funds expended to date. The summary must
identify the source and amount of the match funds required under paragraph 2.02 of this
contract and describe the purposes or uses for which the match funds were expended.
· A statement identifying expected grant and match fund expenditures within the next quarter.
The Grantee's final written quarterly report shall be submitted within two (2) months following the
expenditure of all grant Hinds by the Grantee and must: include a summary description of the
project assisted with the grant funds; contain a certification by the Grantee's chief financial officer
that all grant funds and match funds have been expended in accordance with this agreement and the
provisions of the Metropolitan Livable Communities Act; identify the final number of households
served by the project; identify the final number of unit sizes and rent ranges; and include a statement
describing in reasonable detail how the project helped the Participating Municipality within which
the project is located meet the negotiated affordable and life-cycle housing goals established with
the Council.
The Grantee also shall complete and submit to the Council a Monitoring and Evaluation Report
which will assist the Council in monitoring and evaluating the implementation of the Local Housing
Incentives Account program. The contents, format and completion date of the Monitoring and
Evaluation Report will be determined by the Council. This reporting requirement and the reporting
requirement of paragraph 2.06 shall survive the termination or expiration of this agreement.
AUTHORIZED AGENT
The Council's authorized agent for the purposes of administering this agreement is Wayne Nelson
or another designated Council employee. The written report(s) submitted to the Council shall be
directed to the attention of the Council's authorized agent at the following address:
Metropolitan Council
Meat's Park Centre
230 East Fifth Street
Saint Paul, Minnesota 55101-1634
Working for the Region, Planning for the
Future
230 E. Fifth Street
St. Paul, MN 55101
July 19, 2002
City of Columbia Heights
Walt Fehst, City Manager
590 40th Ave NE
Columbia Heights, MN 55421-3835
JUL ~ 2, 2~ j
Re: SG-02-64
Enclosed is your original copy of the above noted grant agreement.
Sincerely,
Pam Marks
Accountant