2015/12/30 Council Agenda Packet

Exhibit "A" Scope of Service, Time of Performance, Budget, • Payment, Notices, and Other Provisions (With Amendment 2 Changes) I. Scope of Service A. Activities/Project Description In accordance with.this Agreement and the CTED Grant Agreement, the City shall deliver$546,899 in Neighborhood Stabilization Program funds to the Subgrantee (the "Subgrant"). The Subgrantee shall use the Subgrant in accordance with this Agreement, the CTED Grant Agreement, and all applicable laws and regulations. - The Subgrantee's administration and use of the Subgrant shall comply with the following: Program Delivery The Subgrantee shall use $525,000 of the Subgrant to provide funds to nonprofit organizations to provide Rehabilitation and Homeowner Assistance as described below: Rehabilitation. The Subgrantee shall provide funds to one or more nonprofit organizations that will purchase, rehabilitate and sell or rent approximately four(4) foreclosed properties to income- eligible homebuyers. These funds are referred to in this Agreement as "Rehabilitation Funds." Each of these nonprofit organizations is referred to in this Agreement as a "Rehabilitation Nonprofit Organization." Each of the foreclosed properties is referred to in this Agreement as a "Rehabilitation Property." The Subgrantee shall not deliver any Rehabilitation Funds to a Rehabilitation Nonprofit Organization unless the City has approved the Rehabilitation Nonprofit Organization and has approved the contract between the Subgrantee and the Rehabilitation Nonprofit Organization. Each contract between the Subgrantee and a Rehabilitation Nonprofit Organization must include at least the following items, all of which must be acceptable to the City: (1) the form of promissory note to be executed by the Rehabilitation Nonprofit Organization, obligating the Rehabilitation Nonprofit Organization to repay the Rehabilitation Funds to the Subgrantee; (2) the form of the deed of trust to be recorded against Rehabilitation Property; (3) the form of the covenant, if any, to be recorded against Rehabilitation Property; (4) a requirement that the Rehabilitation Nonprofit Organization record the deed of trust and covenant at the closing of its purchase of Rehabilitation Property; (5) a provision stating the requirements for the priorityposition of the deed of trust and covenant; (6) a provision incorporating the CTED Grant Agreement and this Agreement, and requiring that the Rehabilitation Nonprofit Organization fully cooperate in assisting the City and the Subgrantee to comply with both such agreements; (7) indemnity and insurance provisions in favor of the City and the State of Washington; and (8) any other provision that the City may determine necessary. If the Subgrantee receives any repayments of Rehabilitation Funds from the Rehabilitation Nonprofit Organization, the Subgrantee shall promptly deliver those repayments to the City. A-1 8