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HomeMy WebLinkAboutHabitat for Humanity - ARPA Agreement - 11.15.2025AMERICAN RESCUE PLAN ACT SUBRECIPIENT AGREEMENT RECITALS This American Rescue Plan Act Subrecipient Agreement ("Agreement") is entered into by and between the Community Planning and Development Department for the City of Waterloo ("Department"), an instrumentality of the City of Waterloo, Iowa, a municipality, and Iowa Heartland Habitat for Humanity, whose address is 803 West 5th Street, Waterloo, Iowa (Subrecipient). WHEREAS, the Department has State and Local Fiscal Recovery Funds ("SLFRF") available to it for Revenue Loss (or Lost Revenue) pursuant to Sections 602 and 603 of the Social Security Act, as added by section 9901 of the American Rescue Plan Act of 2021 ("ARPA"). WHEREAS, the Department seeks to make one or more Grants to Subrecipient, said Grant or Grants to be funded by SLFRF-Lost Revenue funds, in the amount of $500,000.00, to enable Subrecipient to carry out certain eligible activities in compliance with applicable federal, state, and local laws and regulations on behalf of the Department. WHEREAS, the provision, development, rehabilitation, and preservation of affordable housing constitutes a traditional and essential governmental service that addresses the public and general welfare, safety, and health of the City, and is a proper or eligible use of SLFRF funds under the Revenue Loss / Lost Revenue category. AGREEMENT 1. Purpose and Intent. The purpose of the Agreement is to provide Grants to Subrecipient to enable the Subrecipient to undertake activities consistent with the City of Waterloo's Elevate Housing Policies, attached hereto as Exhibit A , including, but not limited to, the restoration, rehabilitation, and development of affordable residential housing. It is the intention of the parties that Subrecipient be cognizant of and comply with all applicable federal, local, and state laws, regulations, and guidance with respect to this Agreement, and its performance thereof, including but not limited to, the ARPA, its implementing regulations and interpretations, and related laws and regulations. Each property that Subrecipient performs activities on pursuant to this Agreement shall be referred to as a "Project." 2. Representations of the Subrecipient. Recognizing that the Department is relying hereon, the Subrecipient represents, as of the date of this Agreement, the following: (a) The Subrecipient is duly organized and has the full legal right and power to authorize, execute, and deliver this Agreement, to receive the Grant, to perform the terms of this Agreement. (b) Subrecipient, including its officers, employees, agents, and contractors, will comply with all applicable federal, state, and Local laws, rules, regulations, and ordinances in connection with this Agreement, and shall furthermore ensure that proper licenses or permits are obtained with respect to actions or activities performed in connection with this Agreement. (c) No action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, public board or body, other than as disclosed to the Department in writing, is pending or, to the knowledge of the Subrecipient, has been threatened (1) seeking to restrain or enjoin the execution and delivery of this Agreement, or the undertaking of any Project or (2) contesting or affecting the validity of this Agreement. (d) The authorization, execution and delivery of this Agreement, and performance by the Subrecipient and of its obligations under this Agreement, will not constitute a breach of, or a default under, any law, ordinance, resolution, agreement, indenture or other instrument to which the Subrecipient is a party or by which it or any of its properties is bound. (e) Subrecipient shall inform the Department whether or not it is actively registered with the System for Award Management ("SAM") and of its Unique Entity Identifier ("UEI") or Taxpayer Identification Number ("TINS"). If Subrecipient is not registered with the System for Award Management ("SAM") they will be required to register and provide the Department with the foregoing information before Grants will be paid to it. (f) Subrecipient shall provide access to records and documents, and provide any additional information, as requested by the Department that it determines to be reasonably necessary for the terms of this Agreement to be effectuated or to comply with applicable federal, state, and local laws and regulations. (g) All information, reports, and other documents and data submitted to the Department in connection with this Agreement will be true, correct, and complete in all material respects. 3. Grant(s). The City agrees to make and the Subrecipient agrees to accept, on the terms and conditions stated in this Agreement, and consistent with the purposes and intent of the same, one or more Grants, the total amount of which shall not exceed $500,000.00. (a) Purpose, Scope. and Compliance with Applicable Laws and Regulations. Any Grant made available or paid to Subrecipient is an expenditure or use of SLFRF funds under the Revenue Loss category under the ARPA and its implementing regulations and interpretations. Any Grant made available or paid to Subrecipient is for the purpose of enabling Subrecipient to undertake, in compliance with all applicable federal, state, and local laws and regulations, activities consistent with the City of Waterloo's Elevate Housing Policies, attached hereto as Exhibit A , including, but not limited to, the restoration, rehabilitation, and development of affordable residential housing. Subrecipient shall be knowledgeable of and comply with all applicable laws, rules, regulations, ordinances, and US Department of the Treasury interpretations and guidance, including but not limited to, and to the extent applicable, 2 C.F.R. Part 200 (containing administrative requirements, cost principles, and report and audit requirements). Without limiting the foregoing, Subrecipient shall ensure that required permits, licenses, and approvals are obtained in connection with its actions or activities in connection with or furtherance of this Agreement. (b) Payment of Grant(s); Reporting. The Department shall pay a lump sum Grant in the amount of $500,000.00 within a reasonable time after executing this Agreement. In connection with Subrecipient's use of Grant funds, Subrecipient shall submit monthly reports to the Department that contain information regarding each Project undertaken, including but not limited to, the location of each Project, the activities or work performed for each Project, the amount of costs reasonably incurred for each Project, and shall further provide, upon request by the Department, information, records, and documents that substantiate the same. In any event, Subrecipient shall provide the Department with such other information, records, or documents with respect to Subrecipient's use of Grant funds or any Project as reasonably requested by the Department. (c) Schedule. The Subrecipient shall not expend any Grant funds after December 31, 2026. If, in its reasonable determination, Subrecipient is not going to be able to expend the all Grant funds paid to it under this Agreement, Subrecipient agrees to notify the Department in writing before June 30, 2026. Any Grant funds that remain unexpended as of as of June 30, 2026, must be returned to the Department unless, on or before June 30, 2026, the Subrecipient submits a satisfactory plan to expend the remaining funds by December 31, 2026. (d) Fraud, Waste, and Abuse. Subrecipient shall report any real or apparent fraud, waste, abuse or other improper use of Grant funds received under this Agreement to the Department, which shall not be responsible for any expenditure by Subrecipient under the terms of this Agreement. Subrecipient shall be responsible for reimbursing any Grant hinds used inconsistent with the terms of this Agreement to the Department Agency, and such funds shall be other than those provided to Subrecipient pursuant to this Agreement. 4. Termination and Remedies. (a) Termination by the Department. The Department, in its sole and absolute discretion, and with or without cause, may terminate this Agreement or any one or more Grants hereunder: (i) if the Subrecipient has failed to comply with or has breached any provision of this Agreement, including but not limited to, if the Subrecipient has failed to comply with or has breached any law, regulation, or ordinance applicable to any Project or any Grant; or (2) if any applicable law, regulation, or ordinance prevents any term under this Agreement from being performed. (b) Notice of Termination. In the event that the Department seeks to terminate this Agreement, then the Department shall provide the Subrecipient with written notice of termination of this Agreement. The termination of this Agreement shall be effective as of the date such notice of termination. (c) Return of Grant(s). Within 30 days of the termination of this Agreement, the Subrecipient shall return any and all unexpended Grant funds to the Department. (d) Recoupment; Recovery. Any and all Grant funds that are not used in compliance with the terms of this Agreement, including any and all applicable laws, regulations, or ordinances, may be recovered by the City by way of recoupment or by way of commencing legal action against Subrecipient. 5. Recordkeeping. Subrecipient shall keep and maintain all documents and records relating to Subrecipient's receipt and use of any Grant paid to it for a period of seven years following December 31, 2026. 6. Indemnification. To the fullest extent permitted by law, the Subrecipient agrees to indemnify and hold harmless the Department and all of its officials, employees, and agents (collectively, "Indemnified Persons") from and against any and all losses, costs, damages, expenses, judgments, and liabilities of whatever nature (including, but not limited to, attorneys', accountants' and other professionals' fees and expenses, litigation and court costs and expenses, amounts paid in settlement and amounts paid to discharge judgments and amounts owed by an Indemnified Person) relating to or arising out of (i) the actual or alleged failure of the Subrecipient to comply with the terms of this Agreement, including but not limited to, the requirement that Subrecipient comply with all applicable laws or regulations, or with any other requirement or condition applicable to any Grant or the use thereof; or (ii) the operation or undertaking of any Project; provided that no indemnification shall be required of an Indemnified Person to the extent such losses are determined by the final judgment of a court of competent jurisdiction to be the result of the willful misconduct of such Indemnified Person. The provisions of this Section shall survive the termination, for any reason, of this Agreement. 7. Notices. Notice under this Agreement shall be in writing and shall be delivered in person, by overnight air courier service, by United States registered or certified mail, postage prepaid, and addressed: (a) if to City, 715 Mulberry Street, Waterloo, Iowa 50703, Attention: Mayor, with copies to the City Attorney and the Community Planning and Development Director; (b) if to Subrecipient, at 803 W. 5th Street, Waterloo, Iowa 50702, Attention: Executive Director. Delivery of notice shall be deemed to occur (i) on the date of delivery when delivered in person, (ii) one (1) business day following deposit for overnight delivery to an overnight air courier service which guarantees next day delivery, (iii) three (3) business days following the date of deposit if mailed by United States registered or certified mail, postage prepaid, or (iv) when transmitted by facsimile so long as the sender obtains written electronic confirmation from the sending facsimile machine that such transmission was successful. Upon mutual agreement, the parties may agree to any other form of or method of notice. 8. Limitations on Agreement and Grants. In the event that any of the provisions of this Agreement are determined by a court of competent jurisdiction, the City of Waterloo, the Department, or counsel for the City of Waterloo or the Department, to create or result in the creation of legal indebtedness of the City countable against the City's constitutional or statutory debt limitations, then this Agreement, the performance of this Agreement, and the enforceability of this Agreement shall terminate at the option of the Department, such option to be exercised by providing written notice of termination to Subrecipient. Additionally, in the event that the City of Waterloo, the Department, or counsel for either or both, conclude that any provision of this Agreement is unlawful or otherwise improper under existing and applicable federal, state, or local law or regulations, then this Agreement shall be terminated upon Department's written notice of termination to Subrecipient. A termination of this of this Agreement under this Section shall be effective as of the date of the written notice of termination. 9. No Joint Venture. Nothing in this Agreement shall, or shall be deemed or construed to, create or constitute any joint venture, partnership, agency, employment, or any other relationship between the City and Company nor to create any liability for one party with respect to the liabilities or obligations of the other party or any other person. 10. Amendment, Modification, and Waiver. No amendment, modification, or waiver of any condition, provision, or term of this Agreement shall be valid or of any effect unless made in writing, signed by the party or parties to be bound or by the duly authorized representative of same, and specifying with particularity the extent and nature of the amendment, modification, or waiver. Any waiver by any party of any default by another party shall not affect or impair any rights arising from any subsequent default. 11. Severability; Reformation. Each provision, section, sentence, clause, phrase, and word of this Agreement is intended to be severable. If any portion of this Agreement shall be deemed invalid or unenforceable, whether in whole or in part, the offending provision or part thereof shall be deemed severed from this Agreement and the remaining provisions of this Agreement shall not be affected thereby and shall continue in fiill force and effect. If, for any reason, a court finds that any portion of this Agreement is invalid or unenforceable as Written, but that by limiting such provision or portion thereof it would become valid and enforceable, then such provision or portion thereof shall be deemed to be written, and shall be construed and enforced, as so limited. 12. Captions. All captions, headings, or titles in the paragraphs or sections of this Agreement are inserted only as a matter of convenience and/or reference, and they shall in no way be construed as limiting, extending, or describing either the scope or intent of this Agreement or of any provisions hereof. 13. Interpretation. This Agreement shall not be construed more strictly against one party than against the other merely by virtue of the fact that it may have been prepared by counsel for one of the parties. 14. Binding Effect. This Agreement shall be binding and shall inure to the benefit of the parties and their respective successors, assigns, and legal representatives. 15. Counterparts. This may be executed in multiple counterparts, each of which shall be deemed an original and all of which, taken together, shall constitute one and the same instrument. 16. Entire Agreement. This Agreement, together with the exhibits attached hereto, constitutes the entire agreement of the parties and supersedes all prior or contemporaneous negotiations, discussions, understandings, or agreements, whether oral or written, with respect to the subject matter hereof. Community Planning and Dev Department for the City of W By: Noel Anderson, Director Date: I/ / 7� t Iowa Heartland Habitat for Humanity Name: ,. L t S b.(1 S k E>eI ( f Title: Date: Exhibit "A" Elevate Housing Policies 2025 1. Sale of City Residential Property Policy a. The overall Sale of Property Policy stays same for all City Property (2019). • Infill Site — public or private lot within a subdivision that is at least 20 years old and over 60% of the subdivision has been built upon. . For larger infill sites (i.e. Baltimore Field) staff will determine the eligibility of areas as infill if they require additional platting. Y Infill Site incentives may apply to any City -owned lots for residential construction. Note — all land will be sold through Development Agreements to state timeline for construction, design for construction, and note incentives by City, either TIF, ARPA, Nuisance Bonds, or Urban Revitalization (CURA or CLURA) or a combination of the incentives, to gain positive new housing units for the City of Waterloo. This process is for residential development of Infill Sites. CommerciaUlndustrial redevelopment of infill lots or sales will follow the Economic Development Policy Plan for the City of Waterloo. 2. Housing ConstructionlRehabilitation a City acquired housing units will be sent through Request for Proposal process to determine interest in rehabilitation of structures by any private parties. b. City reserves the right to work directly with a proven developer in targeted areas to strengthen their ability to work in area (i.e. Habitat in Walnut) v. the RFP process. This will also work to help move faster for some rehabilitations, as well as plan ahead for larger redevelopment strategies for neighborhoods as a whole. All sales require a hearing, so other parties have the right to come and state their interest. c. Privately acquired Infill Housing sites may apply for incentives as long as site meets criteria as an Infill Site. d. Privately acquired housing projects for rehabilitation may request city assistance for incentives for projects on a case -by -case basis. (See 4B for factors to consider). e. City -built homes, if applicable, would be sold through a standard sales realtor, or through a partnership if needed, similar to how City partnered with Hawkeye Community College in past. 3. Acquisitions for Housing a The City will work with residential housing partners for the acquisition of homes for demolition or rehabilitation i. The City will use 657A when possible ii. The City will specifically work in Targeted Areas to help towards long-term planning for neighborhood revitalization iii. The City may work throughout the community for select housing sites for new development, prioritizing abandoned and deteriorating structures, as well as those needing a higher and better land use 4. Infill Sites incentives — a. New construction on eligible Infill Sites i. $5,000 per unit created upon Certificate of Occupancy ii. $7,500 per unit in Targeted Areas b. Rehabilitation on eligible Infill Sites i. $5,000 per unit on a case -by -case basis ii. $7,500 per unit in Targeted Areas, on a case -by -case basis The City Council will review all requests for assistance for rehabilitation. Key determining factors: . If the site is in a Targeted Area — is the project rehabilitation in accordance with the larger planning efforts for neighborhood revitalization If the site is not in a Targeted Area o is the site worthy of 657A action o has it been abandoned o has it been vacant for an extended period of time o is it in deteriorating condition o is it better for demolition o owner /history of deterioration of structure c New Infrastructure construction incentives i. The City has the ability to establish an Urban Renewal District (TIF District) over a site if needing to partner with a developer for a new subdivision type layout, whether on an Infill Site or greenfield site. ii. The City would establish such subdivisions with State Code regulations for timeline, and types of development to occur on -site or off -site or both, in regards to low to moderate income housing requirements. iii. Said goal would be to match incentives offered by abutting and adjacent communities for paying back 50% of infrastructure costs for the new roads, sewers, water, etc. within a 10-year timeline. iv If an Infill Site would receive TIF incentives as noted for infrastructure, housing on the site would not be eligible for CURA or CLURA tax abatement incentives. v. If an Infill Site would receive TIF incentives as noted for infrastructure, housing on the site would not be eligible for $5,000 or $7,500 per home infill incentive unless sold, and funding going to the new homeowner. d Funding Sources for Infill Site and overall Residential Development objectives TIF funds — if the site is in an eligible TIF area, that has housing as a goal, said funds could be used ii. Bonds — the City has bonds for nuisance abatement and housing improvements annually, and said funds could be used city-wide iii. ARPA funds — the City has dedicated $2,041,277 in ARPA funds for housing projects including acquisitions, demolitions, infrastructure, inspections, as well as new construction and rehabilitations. 5. Targeted Areas — a. The City will work to establish Targeted Areas for concentration of needed new housing to help strengthen existing neighborhoods, b. Initial Target Areas i. Walnut Historic Neighborhood ii Church Row Neighborhood iii. West Central Neighborhood iv. We Care Neighborhood v. City View Neighborhood vi Maywood Neighborhood