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HomeMy WebLinkAboutHome_Consortium_Agmnt_(2025-2028)_-_6.2.2025 Docusign Envelope ID:01103EED-C1AO-4BA5-8038-OC40EB96CC3F HOME INVESTMENT PARTNERSHIP PROGRAM CONSORTIUM COOPERATION AGREEMENT FEDERAL FISCAL YEARS 2022, 2023 AND 2024 (October 1, 2025 to September 30, 2028) City Program Years (July 1,2025 to June 30,2028) THIS CONSORTIUM COOPERATION AGREEMENT is entered into by and between the City of Cedar Falls, a Municipal Corporation in Black Hawk County, Iowa (sometimes hereinafter referred to as the "City") and the City of Waterloo, a Municipal Corporation in Black Hawk County, Iowa (hereinafter referred to as the "Lead Entity") for the purpose of continuing a HOME Consortium pursuant to the HOME Investment Partnerships Act(hereinafter referred to as the "HOME Program"); Title II of the Cranston-Gonzales National Affordable Housing Act, as amended(42 U.S.C. 12701 et seq.) (hereinafter referred to as the "Act"). WHEREAS, Section 216(2) of the Act provides that a consortium of geographically contiguous units of general local government is considered a unit of general local government for purposes of the Home Investment Partnerships Program if the Secretary of the U.S. Department of Housing and Urban Development (hereinafter referred to as "HUD") determines that the consortium has sufficient authority and administrative capability to carry out the purposes of the Act on behalf of its member jurisdictions and will direct its activities to the alleviation of housing problems within States; and, WHEREAS, in accordance with Section 217(b)(3) of the Act, HUD will include, as jurisdictions eligible to receive allocations of HOME funds by formula,approved consortia of units of general local government; and, WHEREAS, the City of Cedar Falls, Iowa, and the City of Waterloo, Iowa, desire to enter into a HOME Program Consortium Agreement for the purpose of expanding the supply of decent, safe, sanitary and affordable housing for low and moderate-income residents. NOW, THEREFORE, in consideration of these mutual covenants,the City of Cedar Falls, Iowa, and the City of Waterloo, Iowa do hereby agree as follows: SECTION 1. DEFINITIONS-ABBREVIATIONS 1.1 "City" shall mean-the City of Cedar Falls, an Iowa Municipal Corporation. 1.2 "Lead Entity" shall mean-the City of Waterloo, an Iowa Municipal Corporation. 1.3 "HUD" shall mean-the U.S. Department of Housing and Urban Development. 1.4 "Act" shall mean - the Cranston-Gonzales National Affordable Housing Act, as amended 1 of 8 Docusign Envelope ID:01103EED-C1AO-4BA5-8038-OC40EB96CC3F (42 U.S.C. 12701 et seq.). 1.5 "HOME Program" shall mean - the program conducted under the provision of the Cranston-Gonzales National Affordable Housing Act, Title II, Subtitle A-HOME Investment Partnerships Program(P.L. 101-625) and the Code of Federal Regulations(24 CFR Part 92). 1.6 "HOME Funds" shall mean - HOME Program Entitlement Grant Funds awarded by the Secretary of HUD to the Consortium in accordance with the allocation formula prescribed by HUD. 1.7 "Consortium"or"HOME Consortium"shall mean-a consortium of geographically contiguous units of general local government,which HUD treats as a single unit of local government under the HOME Program, formed for the purpose of furthering the objectives of the HOME Program. Under this Agreement, the cities of Cedar Falls and Waterloo comprise the HOME Consortium. 1.8 "Housing Unit or Units" shall mean - decent, safe, sanitary and affordable housing developed or assisted with HOME Funds pursuant to this Agreement. 1.9 "Qualification Period" shall mean-the Federal Fiscal Years for which the HOME Consortium is to qualify to receive allocations as a participating jurisdiction in the HOME Program. SECTION 2. RESPONSIBILITIES OF THE PARTIES 2.1 Pursuant to this Agreement, the City and the Lead Entity agree to cooperate to undertake or to assist in undertaking housing assistance activities for the HOME Program. 2.2 The Lead Entity shall act in a representative capacity for all member units of general local government, or the Consortium members, for the purposes of the HOME Program. 2.3 The Lead Entity shall assume overall responsibility for ensuring that the Consortium's HOME Program is carried out in compliance with the requirements of the HOME Program, including requirements concerning a Consolidated Submission of Community Planning and Development Programs ("Consolidated Plan") in accordance with HUD regulation in 24 CFR Parts 91 and 92. 2.3.1 This Agreement does not contain a provision for veto or other restriction that would allow any member unit of local government to obstruct the implementation of the Consortium's approved Consolidated Plan. 2.3.2 The 5- Year Consolidated Plan document shall be prepared by Lead Entity in collaboration with staff from City. If a consulting firm is hired to prepare said document, Lead Entity and City will come to a mutually acceptable agreement to split the cost of the consulting firm. 2.3.3 Lead Entity and City agree that necessary adjustments to the Consolidated Plan 2 of 8 Docusign Envelope ID:01103EED-C1AO-4BA5-8038-OC40EB96CC3F development process will be made when necessary as required by the United States Department of Housing and Urban Development, including, but not limited to, any Consolidated Plan process. 2.3.4 The Lead Entity shall initiate the 5-Year Consolidated Plan and Annual Action Plans in IDIS for Lead Entity and City, and submit to HUD on IDIS. Annual reporting (CAPER)will be completed by each entity separately in IDIS. 2.4 The Lead Entity and/or City if necessary, shall secure from the State of Iowa a written certification that the Consortium will direct its activities to the alleviation of housing problems within the State of Iowa. 2.5 The Lead Entity shall submit to HUD the required HOME Consortia qualification documents including required certifications and a fully executed Consortium Cooperation Agreement. 2.6 The Lead Entity and the City shall act affirmatively to further fair housing by: 2.6.1 Employing affirmative marketing procedures in the advertising and marketing of Housing Units, and 2.6.2 Conforming to the non-discrimination provisions hereinafter set forth. 2.7 Lead Entity, after approval by City, is hereby authorized to amend this Consortium Agreement, on behalf of the Consortium, for the purpose of adding new members to the Consortium. 2.7.1 Should it become necessary to change the language of this Agreement to meet HUD approval, without making major changes and without altering the intent of the Agreement, such changes may be made administratively with written consent of the Consortium staff. 2.7.2 This Agreement may be amended for purposes other than those described in 2.7 and 2.7.1 above by written Agreement of the Lead Entity and City. 2.8 Lead Entity and City each shall be solely responsible for such individual financial and/or legal responsibilities which may arise from participation as a member of this Consortium. 2.9 Lead Entity and City each shall be solely responsible for the administration of their respective HOME Programs including: 2.9.1 The development of Housing Units within their respective jurisdictions, and the 3 of 8 Docusign Envelope ID:01103EED-C1AO-4BA5-8038-OC40EB96CC3F use of any public or private funds or loans, or other means of financial assistance. 2.9.2 Additionally, any real or personal property acquired pursuant to this Agreement shall be acquired and maintained in the name of the individual Consortium member performing the acquisition. 2.9.3 Members will abide by their own local codes and standards but acknowledge that in federally funded projects, they are subject to the regulations for addressing lead-paint hazards. 2.10 Match obligations will be met for City by using carryover match funds reported by Lead Entity and reported at the end of the fiscal year. If City completes a project with contributing match it may be reported to the Lead Entity during the request for reimbursement. 2.11 Program Income generated by Lead Entity or City with HOME funds will be accounted for in IDIS by Lead Entity then used for eligible activities by each agency separately. 2.12 It is the City's responsibility to assure compliance with all HOME requirements during project implementation and the affordability period. The Lead Entity has the right to monitor projects compliance. City will submit to Lead Entity the Environmental Review (ER) for each HOME project, and Lead Entity will approve the ER, before said project begins by City. 2.13 City and Lead Entity will follow the regulations of the HOME Final Rule with updates including April 20, 2025, and any updates published within the period covered by this agreement. SECTION 3. PROVISIONS OF THE AGREEMENT 3.1 Lead Entity and City agree that the Consortium start date shall be July 1, 2025, and that they, and any new members added to this Consortium,pursuant to Section 2.7 above, shall establish July 1 through June 30 as their respective fiscal year for the following Federal programs: 1) the Community Development Block Grant under Title I of the Housing and Community Development Act of 1974, as amended(PL 93-383), 2)the Home Investment Partnership Program under Title II of the Cranston-Gonzalez National Affordable Housing Act, as amended, (PL 101-625), 3) the Emergency Shelter Grant Program under Subtitle B of Title IV of the Stewart B. McKinney Homeless Assistance Act of 1988, as amended (PL 100-628), and 4) the Housing Opportunities for Persons With Aids Program under Title II of the Cranston-Gonzalez National Affordable Housing Act,as Amended,(PL 101- 625), as applicable. 3.2 Though this Agreement may be amended, no Consortium member, including any new member added pursuant to Section 2.7 above,may withdraw from this Agreement while it remains in effect. A member desiring to terminate the Agreement and its participation in the Waterloo HOME Consortium may do so by giving no less than 6 months prior written notice. The notice must be sent to the Lead Entity at the addresses appearing on the 4 of 8 Docusign Envelope ID:01103EED-C1AO-4BA5-8038-OC40EB96CC3F signature page and the notice must specify the effective date of the termination. The Agreement will terminate on the effective date specified in the notice. 3.3 For the Lead Entity and City, this Agreement is made and entered into pursuant to: 3.3.1 Iowa Code, Chapter 364 (2015), entitled "Powers and Duties of Cities". 3.4 The parties to this Agreement shall not,in the performance of this Agreement,discriminate or permit discrimination in violation of Federal or other laws or local ordinances because of race, color,handicap, familial status, sex, age,political or religious opinions, affiliations or national origin. SECTION 4. DISTRIBUTION OF HOME FUNDS 4.1 Lead Entity shall be the recipient of each annual allocation of HOME Funds awarded to the Consortium by HUD and shall secure such funds in a manner prescribed by HUD. 4.2 For each annual allocation of HOME Funds, funds will be disbursed as follows: 4.2.1 10% of the entire annual HOME allocation will go to Lead Entity for allowable administration/planning costs of the HOME Program. 4.2.2 15% of the entire HOME allocation goes to the local Community Housing Development Organization(s) (CHDO). The CHDO may use each allocation in the corresponding jurisdiction. If the CHDO is unable to use the City's allocation in City's jurisdiction it may be used in the Lead Entity's jurisdiction. The Lead Entity will oversee the CHDO requirements. Please see Appendix A for a sample breakdown of funding. 4.2.3 The annual HOME allocation will be split after deducting administrative/planning costs and CHDO set-aside, at a rate of 72% to Lead Entity and 28%to City unless an alternate mutually agreeable allocation formula is approved by Lead Entity and City. 4.2.4 The allocation formula listed in 4.2.3 will be revised should additional members be added to the HOME Consortium. The revised allocation formula must be approved by Lead Entity and City before any additional members may be added. 4.2.5 City may not expend HOME Funds for any administrative or planning expenses. 4.2.6 HOME Funds shall be allocated to City through correspondence when Lead Entity receives Authority to Use Grant Funds from HUD. 4.3 Some members existing programs may need to be modified if carried out with HOME 5 of 8 Docusign Envelope ID:01103EED-C1AO-4BA5-8038-OC40EB96CC3F funds, but the Consortium Activities do not impact CDBG-funded programs. SECTION 5. TERM OF THE AGREEMENT/QUALIFICATION PERIOD 5.1 This Agreement shall be in full force and effect for a period of three years beginning on October 1, 2025, and ending September 30, 2028, said period comprising the Qualification Period, or until such time the HOME Funds are closed out as specified in Section 5.3, below. City program years are July 1, 2025 to June 30, 2028. By the date specified in HUD's consortia designation notices, the consortium lead entity will notify each participating unit of general local government in writing of its right not to participate for the successive three-year qualification periods. The consortium will adopt any amendment to the agreement incorporating changes necessary to meet the requirements for cooperation agreements set forth in a Consortia Qualification Notice applicable for a subsequent three-year consortia qualification period, and to submit the amendment to HUD as specified in the Consortia Qualification Notice for that period, and that failure to comply will void the automatic renewal of the consortia agreement. 5.2 The Federal fiscal years of this Agreement shall include FY 2025, 2026, and 2027. 5.3 Notwithstanding the above, this Agreement shall remain in effect until the HOME Funds from each of the Federal Fiscal Years of the Qualification Period are closed out pursuant to 24 CFR 92.507. SECTION 6. AUTHORIZED REPRESENTATIVES In further consideration of the mutual covenants herein contained, the parties hereto expressly agree that for purposes of notice, including legal service of process, during the term of this Agreement, and for the period of any applicable statute of limitations thereafter,the following named individuals or their successors shall be authorized representatives of the parties: (1) Quentin Hart, Mayor City of Waterloo 715 Mulberry Street Waterloo, Iowa 50703 (2) Danny Laudick, Mayor City of Cedar Falls 220 Clay Street Cedar Falls, Iowa 50613 6 of 8 Docusign Envelope ID:01103EED-C1AO-4BA5-8038-OC40EB96CC3F With copies to: (3) Rudy D. Jones Community Development Director 620 Mulberry Street Waterloo, Iowa 50703 and (4) Stephanie Sheetz Director of Community Development 220 Clay Street Cedar Falls, Iowa 50613 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date indicated below. ATTEST: CITY OF WATERLOO: DocuSigned by: DocuSigned by: F4'mV, Rof 09AR44F r City Clerk Quentm art, Mayor City of Waterloo, Iowa City of Waterloo, Iowa 6/2/2025 6/2/2025 Date Date ATTEST: CITY OF CEDAR FALLS City Clerk Danny Laudick, Mayor City of Cedar Falls, Iowa City of Cedar Falls, Iowa Date Date 7 of 8 Docusign Envelope ID:01103EED-C1AO-4BA5-8038-OC40EB96CC3F APPENDIX A Sample HOME Allocation Amount$453,195 1.) Administrative and Planning $453,195.00 X 10% $45,319.50 To Lead Entity 2.) CHDO Set-aside $453,195.00 Waterloo 72% $50,385.06 X 15% Cedar Falls 28% $19,594.19 $69,979.25 To CHDO Set-aside 3.) Annual Allocation 72/28 Split for Activities $453,195.00 Annual Allocation - 45,319.50 Administrative/Planning - 69,979.25 CHDO set-aside $337,896.25 Waterloo Cedar Falls $337,896.25 $337,896.25 X 72% X 28% $2439285.30 $949610.95 8 of 8