HomeMy WebLinkAboutContract - Indiana Housing and Community Development Authority - DCIBOARD OF PUBLIC WORKS
AGENDA ITEM REVIEW REQUEST FORM
Date July 29, 2016
Name Pam Mever Department
Community Investment
BPW Date August 9, 2016 Phone Extension 5845
Required Prior to Submittal to Board
Legal ® Attorney Name Michael Schmidt, Ben Dougherty
Controller ® Controller review is required for all Contracts $5,000.00 or more and
greater than one year in length per the City Purchasing Policy
Purchasing ❑
Check the Appropriate Item Type — Required for All Submissions
❑ Agreement ® Contract ❑ Proposal ❑ Addendum
❑ Professional Services ❑ Resolution
❑ Bid Opening ❑ Bid Award ❑ Req. to Advertise ❑ Title Sheet
❑ Quote Opening ❑ Quote Award
❑ Change Order No. ❑ C/O & PCA No. ❑ PCA
❑ Ease/Encroach. ❑ Traffic Control
1-I Other:
ired Information
Company or Vendor Name Indiana Housing and Community Development Authority (IHCDA)
New Vendor
MBE/WBE Contractor
Project Name
Project Number
Funding Source
Account No.
Amount
Terms of Contract
Purpose/Description
Yes Z No ❑ If Yes, Approved by Purchasing
MBE I-1 WBE
Indiana Foreclosure Prevention Network
State of Indiana
211.1001.339.03.00 DCI Dept. Admin Staff C;pontract Revenue
13,297.87
July 1, 2016-June 30, 2017
Foreclosure prevention counseling
referred thru IFPN
to those
❑ Required Contractor's Certification Form Attached (Non -
Collusion, Non -Discrimination, Non -Debarment, E-Verifv, Iran, etc
I Required For Change Orders Only I
Amount of ❑ Increase $
❑ Decrease $
Previous Amount $
Current Percent of Change: %
New Amount
Total Percent of Change: %
Dispersal After Approval
Copy Original
® ® Pam Meyer, DCI
® ❑ Ben Dougherty, Legal
❑ ❑
INDIANA FORECLOSURE PREVENTION NETWORK
PROFESSIONAL SERVICES CONTRACT
This is a Subaward
This is Not a Research and Development Award
National Foreclosure Mitigation Counseling Program
CFDA No. 21.000 PL114-113X1350
Neighborhood Reinvestment Corporation d/b/a NeighborWorks America
Approximately_80% Federal Funding
IHCDA Received an Award in the Amount of $427,291.50 from
Neighborhood Reinvestment Corporation d/b/a NeighborWorks America
FAIN: N/A
Federal Award Date: June 10, 2016
Activity Description: Foreclosure Mitigation Counseling
Contract # IFPN-2016-024
EDS # A161-16-IFPN-024
This Indiana Foreclosure Prevention Network Professional Services Contract ("Contract'), entered
into by and between the Indiana Housing and Community Development Authority ("IHCDA")
and City of South Bend having a DUNS# of 74327123, (the "Contractor"), is executed pursuant to
the terms and conditions set forth herein. In consideration of those mutual undertakings and
covenants, the parties agree as follows:
1. Duties of Contractor.
The duties of the Contractor are set forth in Exhibit A, attached hereto and incorporated fully herein,
and are summarized below:
Conduct foreclosure prevention counseling and intervention, by telephone or in
person, with and on behalf of homeowners who have been referred by the Indiana
Foreclosure Prevention Network ("IFPN").
2. Consideration.
The Contractor will be paid as described more fully in Exhibit B, attached hereto and made a part
hereof. Total remuneration under this Contract shall not exceed Thirteen Thousand, Two Hundred
Ninety -Seven and 87/100 Dollars ($13,297.87).
3. Term.
This Contract shall take effect as of July 1, 2016 ("Effective Date") and remain in effect through
June 30, 2017 (the "Term").
4. Access to Records.
The Contractor and its subcontractors, if any, shall maintain all financial records, supporting
documentation, statistical records, books, documents, papers, other evidence pertaining to all costs
incurred or fees earned under this Contract, and any other records pertinent to this Contract. The
Contractor shall make such materials available at its office at all reasonable times during the Term,
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and for three (3) years from the date of final payment under this Contract, for inspection by IHCDA,
NeighborWorks America, or the authorized representative, agent or third -party contractor of either
entity. Upon request, copies shall be furnished at no cost to IHCDA, NeighborWorks America, or the
authorized representative, agent or third -party contractor of either entity. The only exceptions are the
following: (1) If any litigation, claim, or audit is started before the expiration of the three (3) year
period, the records shall be retained until the litigation, claims or audit findings involving the records
have been resolved and final action taken: and (2) Records for real property and equipment acquired
with funds hereunder shall be retained for three (3) years after final disposition. Notwithstanding the
foregoing, IHCDA, NeighborWorks America, or the authorized representative, agent or third -party
contractor of either entity rights to site, document and personnel access for evaluation purposes are not
limited to the required retention period, but shall last as long as records are retained.
5. Assignment; Successors.
The Contractor binds its successors and assignees to all the terms and conditions of this Contract. The
Contractor shall not assign or subcontract the whole or any part of this Contract without IHCDA's prior
written consent. The Contractor may assign its right to receive payments to such third parties as
the Contractor may desire without the prior written consent of IHCDA, provided that the Contractor
gives written notice (including evidence of such assignment) to IHCDA thirty (30) days in advance of
any payment so assigned. The assignment shall cover all unpaid amounts under this Contract and shall
not be made to more than one party.
6. Assignment of Antitrust Claims.
As part of the consideration for the award of this Contract, the Contractor assigns to IHCDA all right,
title, and interest in and to any claims the Contractor now has, or may acquire, under state or federal
antitrust laws relating to the products or services which are the subject of this Contract.
7. Audits.
Contractor shall comply with 2 CFR 200, as applicable. If the Contractor expends $750,000 or more
in federal awards during the Contract's fiscal year, it must submit its single audit to the IHCDA within
the earlier of thirty (30) days after receipt of the auditor's report(s), or nine (9) months after the end
of the audit period. According to NFMC guidance, Contractor must have completed an independent
audit within nine months of the completion of its most recent fiscal year. If Contractor has revenues
less than $300,000 annually and receives less than $25,000 in NFMC funding, the Contractor may
submit a Review Statement or Compilation Statement in lieu of independent audited financial
statements.
8. Authority to Bind Contractor.
The signatory for the Contractor represents that he/she has been duly authorized by Contractor to
execute this Contract on behalf of the Contractor and has obtained all necessary or applicable approvals
to make this Contract fully binding upon the Contractor when his/her signature is affixed, and accepted
by IHCDA.
9. Changes in Work.
The Contractor shall not commence any additional work or change the scope of the work until
authorized in writing by IHCDA. The Contractor shall make no claim for additional compensation
in the absence of a prior written approval and amendment executed by all signatories hereto. This
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Contract may only be amended, supplemented or modified by a written document executed in the same
manner as this Contract.
10. Compliance with Laws.
A. The Contractor shall comply with all applicable federal, state, and local laws, rules, regulations, and
ordinances, standards and guidelines including the requirements set forth in the National Foreclosure
Mitigation Counseling ("NFMC") Program FINAL Funding Announcement issued on December 1,
2010 (located at: http://www.nw.org/network/nfmcp/documents/Round5FundingA.nnouncement.
pdf) as amended, and the National Industry Standards for Homeownership Counseling Foreclosure
Prevention Intervention Specialty issued January, 2008 (located at: http://www.nw.org/network/
nfmcp/documents/Nati6naadustryForeclosure CounselingStandards-FINAL.pdf) as amended, and
all provisions required thereby to be included herein are hereby incorporated by reference. The
enactment or modification of any applicable state or federal statute or the promulgation of
rules or regulations thereunder after execution of this Contract shall be reviewed by IHCDA and
the Contractor to determine whether the provisions of this Contract require formal modification.
B. The Contractor and its agents shall abide by all ethical requirements that apply to persons who have
a business relationship with IHCDA as set forth in IC § 4-2-6 et seq., IC § 4-2-7, et. seq., the
regulations promulgated thereunder. If the Contractor has knowledge, or would have acquired
knowledge with reasonable inquiry, that a state officer, employee, or special state appointee,
as those terms are defined in IC 4-2-6-1, has a financial interest in the Contract, the Contractor
shall ensure compliance with the disclosure requirements in IC 4-2-6-10.5 prior to the
execution of this contract. If the Contractor is not familiar with these ethical requirements, the
Contractor should refer any questions to the Indiana State Ethics Commission, or visit the
Inspector General's website at http://www.in.gov/ig/. If the Contractor or its agents violate any
applicable ethical standards, IHCDA may, in its sole discretion, terminate this Contract immediately
upon notice to the Contractor. In addition, the Contractor may be subject to penalties under IC §§ 4-
2-6, 4-2-7, 35-44.1-1-4, and under any other applicable laws.
C. The Contractor certifies by entering into this Contract that neither it nor its principal(s) is presently
in arrears in payment of taxes, permit fees or other statutory, regulatory or judicially required
payments to the State of Indiana. The Contractor agrees that any payments currently due to the
State of Indiana may be withheld from payments due to the Contractor. Additionally, further work
or payments may be withheld, delayed, or denied and/or this Contract suspended until the
Contractor is current in its payments and has submitted proof of such payment to the State.
D. The Contractor warrants that it has no current, pending or outstanding criminal, civil, or enforcement
actions initiated by the State, and agrees that it will immediately notify IHCDA of any such actions.
During the term of such actions, the Contractor agrees that IHCDA may delay, withhold, or deny
work under any supplement, amendment, change order or other contractual device issued pursuant
to this Contract.
E. If a valid dispute exists as to the Contractor's liability or guilt in any action initiated by the State or its
agencies, and IHCDA decides to delay, withhold, or deny work to the Contractor, the Contractor
may request that it be allowed to continue, or receive work, without delay. The Contractor must
submit, in writing, a request for review to the Indiana Department of Administration (IDOA)
following the procedures for disputes outlined herein. A determination by IDOA shall be binding on
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the parties. Any payments that the State may delay, withhold, deny, or apply under this section shall
not be subject to penalty or interest, except as permitted by IC §5-17-5
F. The Contractor warrants that the Contractor, its employees, agents, and subcontractors, if any, shall
obtain and maintain all required certifications, permits, licenses, registrations and approvals, and
shall comply with all health, safety, and environmental statutes, rules, or regulations in the
performance of work activities for IHCDA. Failure to do so may be deemed a material breach of
this Contract and grounds for immediate termination and denial of further work with IHCDA.
G. The Contractor affirms that, if it is an entity described in IC Title 23, it is properly registered and
owes no outstanding reports to the Indiana Secretary of State.
H. As required by IC 5-22-3-7:
(1) The Contractor and any principals of the Contractor certify that:
(A) the Contractor, except for de minimis and nonsystematic violations, has not violated the
terms of:
(i) IC 24-4.7 (Telephone Solicitation of Consumers);
(ii) IC 24-5-12 (Telephone Solicitations); or
(iii) IC 24-5-14 (Regulation of Automatic Dialing Machines);
in the previous three hundred sixty-five (365) days, even if IC 24-4.7 is preempted by federal
law; and
(B) the Contractor will not violate the terms of IC 24-4.7 for the duration of the Contract, even
if IC 24-4.7 is preempted by federal law.
(2) The Contractor and any principals of the Contractor certify that an affiliate or principal of the
Contractor and any agent acting on behalf of the Contractor or on behalf of an affiliate or principal
of the Contractor
(A) except for de minimis and nonsystematic violations, has not violated the terms of IC 24-4.7
in the previous three hundred sixty-five (365) days, even if IC 24-4.7 is preempted by federal
law; and
(B) will not violate the terms of IC 24-4.7 for the duration of the Contract, even if IC 24-4.7 is
preempted by federal law.
11. Condition of Payment.
All services provided by the Contractor under this Contract must be performed to IHCDA's
reasonable satisfaction, as determined at the discretion of the undersigned IHCDA representative and
in accordance with Exhibit A and all applicable federal, state, and local laws, ordinances, rules and
regulations. IHCDA shall not be required to pay for work found to be unsatisfactory, inconsistent
with this Contract or performed in violation of any federal, state or local statute, ordinance, rule or
regulation. As required by IC 4-13-2-14.8, payments to the Contractor shall be made via electronic
funds transfer in accordance with instructions filed by the Contractor with the Controller of IHCDA.
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As a further condition of payment, the Contractor shall complete in full and return to IHCDA a federal
Form W-9 (Request for Taxpayer Identification Number and Certification), the form of which is
attached hereto as Exhibit C and made a part hereof.
12. Confidentiality of Information.
The Contractor understands and agrees that data, materials, and information disclosed to the
Contractor may contain confidential and protected information. The Contractor covenants that data,
material and information gathered, based upon or disclosed to the Contractor for the purpose of this
Contract, will not be disclosed to or discussed with third parties without the prior written consent of
IHCDA.
The parties acknowledge that the services to be performed by Contractor for IHCDA under this
contract may require or allow access to data, materials, and information containing Social Security
numbers or other personal information maintained by or on behalf of IHCDA in a computer system
or other records. In addition to the covenant made above in this section and pursuant to 10 IAC 5-3-
1(4), the Contractor and IHCDA agree to comply with the provisions of IC 4-1-10 and IC 4-1-11. If
any Social Security number(s) is/are disclosed by Contractor, Contractor agrees to pay the cost of the
notice of disclosure of a breach of the security of the system in addition to any other claims and
expenses for which it is liable under the terms of this Contract.
The Contractor agrees to handle and dispose of clients' personal information in accordance with the
National Industry Standards for Homeownership Counseling, HUD's standards for approval of
housing counseling, and applicable laws and regulations. A copy of the "Standards for
Homeownership Education and Counseling — Foreclosure Intervention Specialty" are set forth in
Exhibit F to this Contract. Attached hereto and incorporated herein by reference as Exhibit D is a
copy of Contractor's internal privacy/confidential information policy, which includes policies
required under the May 25, 2010 Memorandum from NeighborWorks America on the subject of
protection disposal of personal information (http://www.in.gov/ihcda/files/NFMC_Program_
Protection_ and, Disposal_ of Client_ Information.pdf), as amended. Contractor agrees to comply
with such internal privacy/confidential information policy with regard to data, materials, and
information disclosed or otherwise provided to Contractor by IFPN clients under the terms of this
Contract. IF THE CONTRACTOR HAS PREVIOUSLY PROVIDED IHCDA WITH A COPY
OF THE CONTRACTOR'S INTERNAL PRIVACY/CONFIDENTIAL INFORMATION
POLICY, AND SUCH POLICY HAS NOT CHANGED, THE CONTRACTOR SHALL
PREPARE AND SUBMIT THE FOLLOWING FOR EXHIBIT Dc "Contractor's Internal
Privacy/Confidential Information Policy has not changed since the time it was submitted to IHCDA
in conjunction with Contract # /-q/&/ /,?-1E,04 - C, // " BY DOING SO, THE
CONTRACTOR WILL NOT NEED TO RESUBMIT ITS POLICY.
13. Continuity of Services. Intentionally omitted.
14. Debarment and Suspension.
A. The Contractor certifies by entering into this Contract that neither it nor its principals nor any of its
subcontractors are presently debarred, suspended, proposed for debarment, declared ineligible or
voluntarily excluded from entering into this Contract by any federal agency or by any department,
agency or political subdivision of the State of Indiana. The term "principal" for purposes of this
Contract means an officer, director, owner, partner, key employee or other person with primary
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management or supervisory responsibilities, or a person who has a critical influence on or substantive
control over the operations of the Contractor.
B. The Contractor certifies that it has verified the state and federal suspension and debarment status for
all subcontractors receiving funds under this Contract and shall be solely responsible for any
recoupment, penalties or costs that might arise from use of a suspended or debarred subcontractor.
The Contractor shall immediately notify IHCDA if any subcontractor becomes debarred or
suspended, and shall, at IHCDA's request, take all steps required by IHCDA to terminate its
contractual relationship with the subcontractor for work to be performed under this Contract.
15. Default by IHCDA.
If IHCDA, sixty (60) days after receipt of written notice, fails to correct or cure any material breach of
this Contract, the Contractor may cancel and terminate this Contract and institute the appropriate
measures to collect monies due up to and including the date of termination.
16. Disputes.
A. Should any disputes arise with respect to this Contract, the Contractor and IHCDA agree to act
immediately to resolve such disputes. Time is of the essence in the resolution of disputes.
B. The Contractor agrees that, the existence of a dispute notwithstanding, it will continue without delay
to carry out all of its responsibilities under this Contract that are not affected by the dispute. Should
the Contractor fail to continue to perform its responsibilities regarding all non -disputed work, without
delay, any additional costs incurred by IHCDA or the Contractor as a result of such failure to proceed
shall be borne by the Contractor, and the Contractor shall make no claim against IHCDA for such
costs.
C. If the parties are unable to resolve a contract dispute between them after good faith attempts to do so,
a dissatisfied party shall submit the dispute to the Commissioner of the Indiana Department of
Administration for resolution. The dissatisfied party shall give written notice to the Commissioner
and the other party. The notice shall include (1) a description of the disputed issues, (2) the efforts
made to resolve the dispute, and (3) a proposed resolution. The Commissioner shall promptly issue
a Notice setting out documents and materials to be submitted to the Commissioner in order to resolve
the dispute; the Notice may also afford the parties the opportunity to make presentations and enter
into further negotiations. Within 10 business days of the conclusion of the final presentations, the
Commissioner shall issue a written decision and furnish it to both parties. The Commissioner's
decision shall be the final and conclusive administrative decision unless either party serves on the
Commissioner and the other party, within ten business days after receipt of the Commissioner's
decision, a written request for reconsideration and modification of the written decision. If the
Commissioner does not modify the written decision within 30 business days, either party may take
such other action helpful to resolving the dispute, including submitting the dispute to an Indiana court
of competentjurisdiction. If the parties accept the Commissioner's decision, it may be memorialized
as a written Amendment to this Contract if appropriate.
D. IHCDA may withhold payments on disputed items pending resolution of the dispute. The
unintentional nonpayment by IHCDA to the Contractor of one or more invoices not in dispute in
accordance with the terms of this Contract will not be cause for the Contractor to terminate this
Contract, and the Contractor may bring suit to collect these amounts without following the disputes
procedure contained herein.
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E. With the written approval of the Commissioner of the Indiana Department of Administration, the
parties may agree to forego the process described in subdivision C. relating to submission of the
dispute to the Commissioner.
F. This paragraph shall not be construed to abrogate provisions of Ind. Code 4-6-2-11 in situations
where dispute resolution efforts lead to a compromise of claims in favor of the State as described in
that statute. In particular, releases or settlement agreements involving releases of legal claims or
potential legal claims of the State should be processed consistent with Ind. Code 4-6-2-11, which
requires approval of the Governor and Attorney General.
17. Drug -Free Workplace Certification.
As required by Executive Order No. 90-5 dated April 12, 1990, issued by the Governor of Indiana, the
Contractor hereby covenants and agrees to make a good faith effort to provide and maintain a drug -free
workplace. The Contractor will give written notice to IHCDA within ten (10) days after receiving
actual notice that the Contractor or an employee of the Contractor in the State of Indiana has been
convicted of a criminal drug violation occurring in the workplace. False certification or violation of
this certification may result in sanctions including, but not limited to, suspension of contract
payments, termination of this Contract, and/or debarment of contracting opportunities with IHCDA
for up to three (3) years.
In addition to the provisions of the above paragraph, if the total contract amount set forth in this
Contract is in excess of $25,000.00, the Contractor certifies and agrees that it will provide a drug -free
workplace by:
A. Publishing and providing to all of its employees a statement notifying them that the unlawful
manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in
the Contractor's workplace, and specifying the actions that will be taken against employees for
violations of such prohibition;
B. Establishing a drug -free awareness program to inform its employees of (1) the dangers of drug
abuse in the workplace; (2) the Contractor's policy of maintaining a drug -free workplace; (3) any
available drug counseling, rehabilitation, and employee assistance programs; and (4) the penalties
that may be imposed upon an employee for drug abuse violations occurring in the workplace;
C. Notifying all employees in the statement required by subparagraph (A) above that as a condition
of continued employment, the employee will (1) abide by the terms of the statement; and (2) notify
the Contractor of any criminal drug statute conviction for a violation occurring in the workplace
no later than five (5) days after such conviction;
D. Notifying IHCDA, in writing, within ten (10) days after receiving notice from an employee under
subdivision (C)(2) above, or otherwise receiving actual notice of such conviction;
E. Within thirty (30) days after receiving notice under subdivision (C)(2) above of a
conviction, imposing the following sanctions or remedial measures on any employee who is
convicted of drug abuse violations occurring in the workplace: (1) taking appropriate personnel
action against the employee, up to and including termination; or (2) requiring such employee to
satisfactorily participate in a drug abuse assistance or rehabilitation program approved for such
purposes by a federal, state, or local health, law enforcement, or other appropriate agency; and
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F. Making a good faith effort to maintain a drug -free workplace through the .implementation of
subparagraphs (A) through (E) above.
18. Employment Eligibility Verification.
As required by IC §22-5-1.7, the Contractor swears or affirms under the penalties of perjury that the
Contractor does not knowingly employ an unauthorized alien. The Contractor further agrees that:
A. The Contractor shall enroll in and verify the work eligibility status of all his/her/its newly hired
employees through the E-Verify program as defined in IC §22-5-1.7-3. The Contractor is not
required to participate should the E-Verify program cease to exist. Additionally, the Contractor is
not required to participate if the Contractor is self-employed and does not employ any employees.
B. The Contractor shall not knowingly employ or contract with an unauthorized alien. The Contractor
shall not retain an employee or contract with a person that the Contractor subsequently learns is an
unauthorized alien.
C. The Contractor shall require his/her/its subcontractors, who perform work under this Contract, to
certify to the Contractor that the subcontractor does not knowingly employ or contract with an
unauthorized alien and that the subcontractor has enrolled and is participating in the E-Verify
program. The Contractor agrees to maintain this certification throughout the duration of the term
of a contract with a subcontractor.
IHCDA may terminate for default if the Contractor fails to cure a breach of this provision no later
than thirty (30) days after being notified by IHCDA.
19. Employment Option. Intentionally omitted.
20. Force Maieure.
In the event that either party is unable to perform any of its obligations under this Contract or to enjoy
any of its benefits because of natural disaster or decrees of governmental bodies not the fault of the
affected party (hereinafter referred to as a "Force Majeure Event"), the party who has been so affected
shall immediately, or as is soon as reasonably possible under the circumstances, give notice to the other
party and shall do everything possible to resume performance. Upon receipt of such notice, all
obligations under this Contract shall be immediately suspended. If the period of nonperformance
exceeds thirty (30) days from the receipt of notice of the Force Majeure Event, the party whose ability
to perform has not been so affected may, by giving written notice, terminate this Contract.
21. Funding Cancellation.
When the Executive Director of IHCDA or the State Budget Agency makes a written determination
that funds are not appropriated or otherwise available to support continuation of performance of this
Contract, this Contract shall be canceled. A determination by the Executive Director of IHCDA or
the Director of the State Budget Agency that funds are not appropriated or otherwise available to
support continuation of performance shall be final and conclusive.
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22. Governin2 Laws.
This Contract shall be governed, construed, and enforced in accordance with the laws of the State of
Indiana, without regard to its conflict of laws rules. Suit, if any, must be brought in courts located in
Marion County, Indiana.
23. HIPAA Compliance.
If this Contract involves services, activities or products subject to the Health Insurance Portability
and Accountability Act of 1996 (HIPAA), the Contractor covenants that it will appropriately
safeguard Protected Health Information (defined in 45 CFR 160.103), and agrees that it is subject to,
and shall comply with, the provisions of 45 CFR 164 Subpart E regarding use and disclosure of
Protected Health Information.
24. Indemnification.
The Contractor agrees to indemnify, defend, and hold harmless IHCDA, its agents, officials, and
employees from all claims and suits including court costs, attorney's fees, and other expenses any
act or omission of the Contractor and/or its subcontractors, if any, in the performance of this Contract.
IHCDA shall not provide such indemnification to the Contractor.
25. Independent Contractor; Workers' Compensation Insurance.
The Contractor is performing as an independent entity under this Contract. No part of this Contract
shall be construed to represent the creation of an employment, agency, partnership, or joint venture
agreement between the parties. Except as provided in Section 24 above, neither party will assume
liability for any injury (including death) to any persons, or damage to any property, arising out of the
acts or omissions of the agents, employees, or subcontractors of the other party. The Contractor shall
provide all necessary unemployment and workers' compensation insurance for the Contractor's
employees and shall provide IHCDA with a Certificate of Insurance evidencing such coverage prior
to starting work under this Contract, upon request.
26. Information Technology Enterprise Architecture Requirement. Intentionally omitted.
27. Insurance.
A. The Contractor and their subcontractors (if any) shall secure and keep in force during the Term of
this Contract, the following insurance coverages (if applicable) covering the Contractor for any and
all claims of any nature which may in any manner arise out of or result from Contractor's
performance under this Contract:
1. Commercial general liability, including contractual coverage, and products or completed
operations coverage (if applicable), with minimum liability limits not less than $700,000 per
occurrence and $2,000,000 in the aggregate unless additional coverage is required by the
IHCDA. The IHCDA is to be named as an additional insured on a primary, non-contributory
basis for any liability arising directly or indirectly under or in connection with this Contract.
2. Automobile Liability. Deleted; not applicable.
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Professional Liability, also known as Errors and Omissions Insurance, for those Contractors
required to hold a professional license by the Indiana Professional Licensing Agency with
limits not less than $700,000 per cause of action and $2,000,000 per occurrence. This is
coverage available to pay for liability arising out of the performance of professional or
business related duties, with coverage tailored to the needs of the specific profession.
Coverage for the benefit of the IHCDA shall continue for a period of two (2) years after the
date of service provided under this Contract.
4. Fiduciary Liability. Deleted; not applicable.
5. Valuable Papers coverage. Deleted; not applicable.
6. Surety or Fidelity Bond(s). Deleted; not applicable.
The Contractor shall provide proof of such insurance coverage by tendering to the undersigned
IHCDA representative a certificate of insurance upon request and proof of workers
compensation coverage meeting all statutory requirements of IC 22-3-2, upon request. In
addition, proof of an "all states endorsement" covering claims occurring outside the State is
required if any of the services provided under this Contract involve work outside of Indiana.
B. The Contractor's insurance coverage must meet the following additional requirements:
1. The insurer must have a certificate of authority or other appropriate authorization to operate
in the state in which the policy was issued.
2. Any deductible or self -insured retention amount or other similar obligation under the
insurance policies shall be the sole obligation of the Contractor.
3. IHCDA will be defended, indemnified and held harmless to the full extent of any coverage
actually secured by the Contractor in excess of the minimum requirements set forth above.
The duty to indemnify IHCDA under this Contract shall not be limited by the insurance
required in this Contract.
4. The insurance required in this Contract, through a policy or endorsement(s), shall include a
provision that the policy and endorsements may not be canceled or modified without thirty
(30) days' prior written notice to IHCDA.
5. The Contractor waives and agrees to require their insurer to waive their rights of
subrogation against IHCDA.
C. Failure to provide insurance as required in this Contract maybe deemed a material breach of contract
entitling IHCDA to immediately terminate this Contract. The Contractor shall furnish a certificate of
insurance and all endorsements to IHCDA upon request.
28. Key Person(s).
A. If both parties have designated that certain individual(s) are essential to the services offered, the
parties agree that should such individual(s) leave their employment during the term of this contract
for whatever reason, IHCDA shall have the right to terminate this Contract upon thirty (30) days
prior written notice.
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B. In the event that the Contractor is an individual, that individual shall be considered a key person and,
as such, essential to this Contract. Substitution of another for the Contractor shall not be permitted
without express written consent of IHCDA.
Nothing in subsection A and B above shall be construed to prevent the Contractor from using the
services of others to perform tasks ancillary to those tasks which directly require the expertise of the
key person. Examples of such ancillary tasks include secretarial, clerical, and common labor duties.
The Contractor shall, at all times, remain responsible for the performance of all necessary tasks,
whether performed by a key person or others.
Key person(s) to this Contract is/are Pamela Meyer, Nancy Schrager, and Hedy Robbinson.
29. Licensing Standards.
The Contractor, its employees and subcontractors shall comply with all applicable licensing standards,
certification standards, accrediting standards and any other laws, rules or regulations governing
services to be provided by the Contractor pursuant to this Contract. IHCDA will not pay the
Contractor for any services performed when the Contractor, its employees or subcontractors are not
in compliance with such applicable standards, laws, rules or regulations. If any license, certification
or accreditation expires or is revoked, or any disciplinary action is taken against an applicable license,
certification or accreditation, the Contractor shall notify IHCDA immediately and IHCDA, at its
option, may immediately terminate this Contract.
30. Merger & Modification.
This Contract contains the entire agreement between the parties. No understandings agreements,
representations, inducements, promises or oral agreements not embodied herein shall be of any
force or effect. This Contract may not be modified, supplemented, or amended, except by written
agreement signed by all necessary parties.
31. Minority and Women's Business Enterprises Compliance. Deleted; not applicable.
32. Nondiscrimination.
Pursuant to the Indiana Civil Rights Law, specifically including IC § 22-9-1-10, and in keeping with
the purposes of the federal Civil Rights Act of 1964, the Age Discrimination in Employment Act, and
the Americans with Disabilities Act, the Contractor covenants that it shall not discriminate against
any employee or applicant for employment relating to this Contract with respect to the hire, tenure,
terms, conditions, or privileges of employment or any matter directly or indirectly related to
employment, because of the employee or applicant's race, color, national origin, religion, gender, age,
disability, ancestry, creed, pregnancy, marital, parental status, familial status, sexual orientation, status
as a veteran, physical, mental, emotional or learning disability, or any other characteristic protected by
federal, state, or local law ("Protected Characteristics"). Contractor certifies compliance with
applicable federal laws, regulations, and executive orders prohibiting discrimination based on the
Protected Characteristics in the provision of services. Breach of this paragraph may be regarded as a
material breach'of this Contract, but nothing in this paragraph shall be construed to imply or establish
an employment relationship between IHCDA and any applicant or employee of the Contractor or any
subcontractor.
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IHCDA is a recipient of federal funds, and therefore, where applicable, Contractor and any
subcontractors agree to comply with requisite affirmative action requirements, including reporting,
pursuant to 41 CFR Chapter 60, as amended, and Section 202 of Executive Order 11246.
In addition, Contractor shall not discriminate against clients on the basis of their gender, race, color,
religion, national origin, ancestry, creed, pregnancy, marital or parental status, familial status, sexual
orientation, or physical, mental, emotional or learning disability.
33. Notice to Parties.
Whenever any notice, statement, or other communication is required under this Contract, it shall be
sent by first class mail or via an established courier/delivery service to the following addresses, unless
otherwise specifically advised.
A. Notices to IHCDA shall be sent to:
Mark Neyland
Director of Asset Preservation
Indiana Housing and Community
Development Authority
30 South Meridian Street, Suite 1000
Indianapolis, Indiana 46204
With a copy to:
David W. Stewart
General Counsel
Indiana Housing and Community
Development Authority
30 South Meridian Street, Suite 1000
Indianapolis, Indiana 46204
B. Notices to the Contractor shall be sent to:
Pamela Meyer, Executive Director
City of South Bend
227 West Jefferson Boulevard, 14th Floor
South Bend, Indiana 46601
C. Awarding Official
J. Jacob Sipe
Executive Director
Indiana Housing and Community
Development Authority
30 South Meridian Street, Suite 1000
Indianapolis, Indiana 46204
As required by IC §4-13-2-14.8, payments to the Contractor shall be made via electronic funds
transfer in accordance with instructions filed by the Contractor with IHCDA's Controller.
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34. Order of Precedence; Incorporation by Reference.
Any inconsistency or ambiguity in this Contract shall be resolved by giving precedence in the following
order: (1) this Contract, (2) attachments prepared by IHCDA, and (3) attachments prepared by the
Contractor. All attachments, and all documents referred to in this paragraph are hereby
incorporated fully by reference.
35. Ownership of Documents and Materials.
C. All documents, records, programs, applications, data, algorithms, film, tape, articles, memoranda,
and other materials (the "Materials") not developed or licensed by the Contractor prior to execution
of this Contract, but specifically developed under this Contract shall be considered "work for hire"
and the Contractor hereby transfers and assigns any ownership claims to IHCDA so that all Materials
will be the property of IHCDA. If ownership interest in the Materials cannot be assigned to IHCDA,
the Contractor grants IHCDA a non-exclusive, non -cancelable, perpetual, worldwide royalty -free
license to use the Materials and to use, modify, copy and create derivative works of the Materials.
D. Use of the Materials, other than related to contract performance by the Contractor, without the prior
written consent of IHCDA, is prohibited. During the performance of this Contract, the Contractor
shall be responsible for any loss of or damage to the Materials developed for or supplied by IHCDA
and used to develop or assist in the services provided while the Materials are in the possession of the
Contractor. Any loss or damage thereto shall be restored at the Contractor's expense. The Contractor
shall provide IHCDA full, immediate, and unrestricted access to the Materials and to Contractor's
work product during the term of this Contract.
36. Payments.
All payments shall be made 35 days in arrears in conformance with State fiscal policies and
procedures and, as required by IC § 4-13-2-14.8, by electronic funds transfer to the financial
institution designated by the Contractor, in writing, unless a specific waiver has been obtained
from IHCDA's Controller. No payments will be made in advance of receipt of the goods or
services that are the subject of this Contract except as permitted by IC § 4-13-2-20.
37. Penalties/Interest/Attorney's Fees.
IHCDA will in good faith perform its required obligations hereunder and does not agree to pay any
penalties, liquidated damages, interest, or attorney's fees, except as permitted by Indiana law, in part,
IC §5-17-5,IC §34-54-8,IC §34-13-1 and IC § 34-52-2-3.
Notwithstanding the provisions contained in IC 5-17-5, any liability resulting from IHCDA's failure
to make prompt payment shall be based solely on the amount of funding originating from IHCDA
and shall not be based on funding from federal or other sources.
38. Progress Reports.
The Contractor shall submit progress reports to IHCDA on a monthly basis or more often upon
request. The report shall be electronic, unless the IHCDA, upon receipt of the electronic report,
should deem it necessary to have it in written form. The progress reports shall serve the purpose of
assuring the IHCDA that persons referred to Contractor are receiving prompt and efficient services,
as well as assisting in monitoring the status of the IFPN initiative and shall contain, at a minimum,
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all information required by the National Foreclosure Mitigation Counseling Program. The Contractor
acknowledges that data collection and statistics, particularly with regard to settlement conferences,
are central to the success and viability of the IFPN. As such, the progress reports submitted by
Contractor shall indicate, with regard to each client of Contractor, whether client requested a
settlement conference, and if so, whether the settlement conference was "Successful" or `'Not
Successful". For the purposes of this Agreement, "Successful" means any one of the following
outcomes: a reinstated loan, a loan modification, a repayment plan, a forbearance agreement or plan,
a refinancing, a short sale or pre -foreclosure sale, a deed -in -lieu of foreclosure, an agreement to stay
foreclosure proceedings or other outcome which the Deputy Director of Asset Preservation or his
designee, in writing, has indicated is a Successful Outcome. A settlement conference resulting in an
outcome not above listed shall be reported as "Not Successful" by Contractor. Further, Contractor
shall capture and report to IHCDA the above -described settlement conference data for clients serviced
partially with sources of funding outside this Contract.
39. Public Record.
The Contractor acknowledges that IHCDA will not treat this Contract as containing confidential
information, and will post this Contract on its website as required by Executive Order 05-07. Use by
the public of the information contained in this Contract shall not be considered an act of IHCDA.
40. Renewal Option.
This Contract may be renewed under the same terms and conditions, subject to approval of the
IHCDA Board of Directors, and in compliance with IC 5-22-17-4. The term of the renewed Contract
may not be longer than the term of the original Contract.
41. Severability.
The invalidity of any section, subsection, clause or provision of this Contract shall not affect the
validity of the remaining sections, subsections, clauses or provisions of this Contract.
42. Substantial Performance.
This Contract shall be deemed to be substantially performed only when fully performed according to
its terms and conditions and any written amendments or supplements.
43. Taxes.
IHCDA is exempt from most state and local taxes and many federal taxes. IHCDA will not be
responsible for any taxes levied on the Contractor as a result of this Contract.
44. Termination for Convenience.
This Contract may be terminated, in whole or in part by IHCDA which shall include and is not limited
to the Indiana Department of Administration and the State Budget Agency whenever, for any reason,
IHCDA, IDOA or the State Budget Agency determines that such termination is in its best interest.
Termination of services shall be effected by delivery to the Contractor of a Termination Notice at least
thirty (30) days prior to the termination effective date, specifying the extent to which performance of
services under such termination may continue. The Contractor shall be compensated for services
properly rendered prior to the effective date of termination. IHCDA will not be liable for services
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performed after the effective date of termination. The Contractor shall be compensated for services
herein provided but in no case shall total payment made to the Contractor exceed the original contract
price or shall any price increase be allowed on individual line items if canceled only in part prior to
the original termination date. For the purposes of this paragraph, the parties stipulate and agree that
the Indiana Department of Administration shall be deemed to be a party to this agreement with
authority to terminate the same for convenience when such termination is determined by the
Commissioner of IDOA to be in the best interests of IHCDA.
45. Termination for Default.
A. With the provision of thirty (30) days' notice to the Contractor, IHCDA may terminate this Contract
in whole or in part if the Contractor fails to:
Correct or cure any breach of this Contract; the time to correct or cure the breach may be
extended beyond thirty (30) days if IHCDA determines progress is being made and the
extension is agreed by the parties;
2. Deliver the supplies or perform the services within the time specified in this Contract or any
extension;
3. Make progress so as to endanger performance of this Contract; or
4. Perform any of the other provisions of this Contract.
B. If IHCDA terminates this Contract in whole or in part, it may acquire, under the terms and in
the manner IHCDA considers appropriate, supplies or services similar to those terminated, and the
Contractor will be liable to IHCDA for any excess costs for those supplies or services. However, the
Contractor shall continue the work not terminated.
C. IHCDA shall pay the contract price for completed supplies delivered and services accepted. The
Contractor and IHCDA shall agree on the amount of payment for manufacturing materials delivered
and accepted and for the protection and preservation of the property. Failure to agree will be
a dispute under the Disputes clause. IHCDA may withhold from these amounts any sum IHCDA
determines to be necessary to protect IHCDA against loss because of outstanding liens or claims of
former lien holders.
D. The rights and remedies of IHCDA in this clause are in addition to any other rights and remedies
provided by law or equity or under this Contract.
E. This Contract may be suspended and/or terminated immediately if the Contractor has breached,
defaulted, or committed fraud under this Contract or another contract between the Contractor and
IHCDA. Further, Contractor's breach or default of other agreements or obligations related to this
Contract shall constitute a material breach of this Contract.
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46. Travel. Intentionally omitted.
47. Indiana Veteran's Business Enterprise Compliance. Deleted; not applicable.
48. Waiver of Rights.
No right conferred on either party under this Contract shall be deemed waived, and no breach of this
Contract excused, unless such waiver is in writing and signed by the party claimed to have waived
such right. Neither IHCDA's review, approval or acceptance of, nor payment for, the services
required under this Contract shall be construed to operate as a waiver of any rights under this Contract
or of any cause of action arising out of the performance of this Contract, and the Contractor shall be
and remain liable to IHCDA in accordance with applicable law for all damages to IHCDA caused by
the Contractor's negligent performance of any of the services furnished under this Contract.
49. Work Standards.
The Contractor shall execute its responsibilities by following and applying at all times the highest
professional and technical guidelines and standards. If IHCDA becomes dissatisfied with the work
product of or the working relationship with those individuals assigned to work on this Contract,
IHCDA may request in writing the replacement of any or all such individuals, and the Contractor
shall grant such request. Contractor represents and warrants that all employees or independent
contractors working for Contractor under this Contract either (a) are IFPN state -certified foreclosure
prevention specialists under the Indiana Housing Educators Licensing Procedures and Standards
("HELPS"), (b) are, as of the Effective Date, enrolled in HELPS training to become IFPN state -
certified foreclosure prevention specialists, or (c) will, within thirty (30) days of the Effective Date,
enroll in HELPS training to become IFPN state -certified foreclosure prevention specialists.
Contractor acknowledges that IC 32-30-10.5-10(a)(5)(A) states that an individual has the right to be
assisted by a mortgage foreclosure counselor at a settlement conference, and that, if requested,
Contractor will attend a settlement conference with a client. Notwithstanding the foregoing,
Contractor shall use its best efforts to obtain an attorney to represent the client at a settlement
conference. Failure to comply with this Section may result in immediate termination of the Contract.
50. Accessibility.
The Contractor will ensure that counseling offices and services will be accessible to persons with
disabilities, or have a referral list for clients that need accessibility if its building does not provide
access. If Contractor does not provide translation services, it must access translation services through
Language Line Solutions using IHCDA's account, as detailed in Exhibit E, attached hereto and fully
incorporated herein.
51. Buy American Act.
To the greatest extent practicable, all equipment and products purchased with funds under this
Contract shall be in compliance with the requirements of the Buy American Act (41 U.S.C. § 10).
52. Clean Air Act.
If the total consideration set forth in Section 2 of this Contract exceeds $100,000.00, the Contractor
agrees to comply with all applicable standards, orders or regulations pursuant to the Clean Air Act
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(42 U.S.C. § 7401 et seq.) and the Federal Water Pollution Control Act as amended (33 U.S.C. § 1251
et seq.).
53. Cooperation.
The Contractor agrees to comply with the quality control and compliance measures consisting of site
visits, file audits, and other measures to ensure compliance. By entering into this Contract the
Contractor agrees to cooperate with quality control and compliance efforts of IFPN which include:
A. Standard compliance reviews of program operations and counseling files for clients reported to
IFPN, in which reviews are conducted on -site or remotely;
B. Additional client file reviews and site visits, in which files are selected at random for remote
compliance reviews of specific client files; and/or
C. Special compliance reviews that are performed when NeighborWorks America receives reports of
non-compliance or has concerns about IFPN program management or financial management.
The Contractor agrees to fully cooperate with IHCDA, NeighborWorks America, or the authorized
representative, agent, or third -party contractor of either entity during compliance audits and agrees to
allow them to come onto the site of the Contractor and to conduct a full review of compliance with
IFPN requirements.
54. Ineliaible Expenses.
The Contractor shall promptly repay IHCDA, out of non-federal resources, for any funds under this
Contract that it utilizes for expenses that are deemed "ineligible" and/or "improperly documented"
by any of the following: IHCDA, NeighborWorks America, IFPN Counselor Resource Guide, or this
Agreement. In addition, the Contractor is prohibited from receiving payment under this Contract for
any counseling activities for which it has billed, is planning to bill, or has received payment from the
U.S. Department of Housing or Urban Development ("HUD") or vice versa. Accordingly, any such
expenses shall be deemed "ineligible". If the Contractor receives payment from a client through the
IFPN, it is not allowed to receive funds for that client through the MHA Outreach and Intake Project,
or vice versa.
The Contractor shall not submit subordinate liens for a homeowner whose primary lien was already
service by the Contractor previously and where there is no significant change in circumstance for the
borrower or change in work-out options available to the borrower, nor should the Contractor resubmit
clients that it has taken longer than expected to counsel or to receive a final outcome.
Tenants, heirs, owners who do not have a mortgage on the subject property, and owners (including
investors) who do not live in the subject property are not eligible to receive counseling through IFPN.
No IFPN funds may be provided directly to lenders or homeowners to discharge outstanding mortgage
balances or for any other direct debt reduction payments. These funds may only be used to assist
owner -occupants of one -to -four -unit properties.
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55. Mandatory Disclosure to Clients.
The Contractor shall provide all clients a disclosure statement that explicitly describes the various
types of services provided and any financial relationships between the Contractor and any other
industry partners. The disclosure must clearly state that the client is not obligated to receive any other
services offered by the Contractor or its exclusive partners. The Contractor must allow client access
to its privacy policy statement and document receipt of the privacy statement in the client's file.
56. National Industry Standards Code of Ethics and Conduct and Minimum Standard
Activities for Foreclosure Intervention and Default Counseling.
The Contractor hereby certifies that all counselors performing services under this Agreement have
signed the National Industry Standards Code of Ethics and Conduct. If Contractor is not a HUD -
approved housing counseling agency, it certifies that it meets or exceeds HUD's housing counseling
approval requirements. The Contractor certifies that all work performed under this Contract will meet
the Minimum Standard Activities for Foreclosure Intervention and Default Counseling. If the
Contractor is a HUD -approved housing counseling it must be in good standing with HUD. "Not in
good standing" is defined as a failure to comply with the laws and regulations that govern the HUD
housing counseling program, or the inability of the Contractor to draw down HUD housing counseling
grant funds for any reason. IF the Contractor has received Housing Counseling grants from HUD in
the past are "not in good standing" unless they (a) continue to be a HUD -Approved Counseling
Agency and (b) are not under investigation(s) by HUD for possible non-compliance that have resulted
in funds being withheld by HUD.
57. Political Activity.
If the total consideration set forth in Section 2 of this Contract exceeds $100,000.00, the Contractor
hereby certifies that it will not and has not used these funds to pay any person or organization for
influencing or attempting to influence an officer or employee of any agency, a member of Congress,
an officer or employee of Congress, or an employee of a member of Congress in connection with
obtaining any Federal contract, grant, or other award covered by 31 U.S.C. § 1352.
58. Public Statements Press Releases, and Media.
Contractor acknowledges that IHCDA is solely responsible for all public statements, press releases
and media related to IFPN and the services provided by Contractor under this Contract. Contractor
shall (a) distribute the marketing material provided by IHCDA at the times and according to the
instructions given by IHCDA; (b) promptly refer all media inquiries on IFPN or the Contract to
IHCDA; (c) immediately contact IHCDA with any questions about media or marketing materials; (d)
not alter the marketing materials provided by IHCDA; (e) not contact media (traditional or otherwise)
regarding IFPN or this Contract; and (D not create marketing materials related to IFPN or the
Contract. Breach of this Section may be deemed a material breach of this Contract and grounds for
immediate termination and denial of further work with IHCDA.
59. Client Fees.
To ensure no financial barriers would prohibit clients from receiving foreclosure mitigation
counseling services through IFPN, the Contractor agrees not to charge fees (service fees, membership
fees or otherwise) to any foreclosure or delinquency counseling clients in exchange for foreclosure
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counseling services. Contractor may charge a nominal fee for pulling credit reports if the cost does
not deter clients from seeking counseling.
60. Conflicts of Interest.
The Contractor must ensure that staff and volunteers who provide foreclosure intervention counseling
services under IFPN do not have any conflicts of interest due to relationships with servicers, real
estate agencies, mortgage lenders, and/or other entities (including itself) that may stand to benefit
from particular assistance outcomes.
61. Good Standing.
The Contractor must be currently authorized to do business in all states where it proposes to provide
counseling services and the Contractor has current certificates of good standing in all states in which
it operates.
62. Duplicate Client Reset.
Any client who received counseling services prior to January 1, 2016 will be eligible to be counseled
again by the Contractor on or after January 1, 2016 at any level. The duplicate reset only applies to
level 1 and 2 clients. Contractor will be required to document that the client received the appropriate
level of service again, after January 1, 2016 and all current required documentation is maintained in
the client file, with the new intake date. In order for a client to be uploaded into the Data Collection
System for payment, the homeowners must have received a new counseling session after January 1,
2016 and all required documentation must be updated as of the new intake date and recorded in the
client file. The Contractor cannot submit subordinate liens for a homeowner whose primary lien was
already serviced by the counselor previously and where this is not a change in circumstance for the
borrower or change in workout options available to the borrower, nor should the Contractor resubmit
clients who have on -going cases without any substantial change in circumstances and that have
already been filled in a previous round of funding.
63. Client Rights.
In order to keep as many options as possible available to clients, the Contractor must not engage in
exclusivity agreements with clients .seeking foreclosure or delinquency counseling or interested
parties such as servicers or lenders, not shall they otherwise engage in practices which exclude other
counseling agencies from working with its clients or its clients' servicers or lenders, should the client
willingly seek assistance from another organization.
64. Indirect Cost Rate.
According to 2 CFR 200.414(f), the Contractor may charge a de minimis rate of 10% of modified
total direct costs (MTDC). As described in 2 CFR 200.403, Factors affecting allowability of costs,
costs must be consistently charged as either indirect or direct costs, but may not be double charged or
inconsistently charged as both. If chosen, this methodology once elected must be used consistently
for all Federal awards until such time as the Contractor chooses to negotiate a rate, which the
Contractor may apply to do at any time.
A proposal to establish a cost allocation plan or an indirect (F&A) cost rate, whether submitted to a
Federal cognizant agency for indirect costs or maintained on file by the Contractor, must be certified
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by the Contractor using the Certificate of Cost Allocation Plan or Certificate of Indirect Costs as set
forth in Appendices III through VII, and Appendix IX in 2 CFR part 200. The certificate must be
signed on behalf of the Contractor by an individual at a level no lower than vice president or chief
financial officer of the Contractor.
65. Internal Controls.
The Contractor must:
A. Establish and maintain effective internal control over federal funds that provides reasonable
assurance that the Contractor is managing federal funds in compliance with Federal statutes,
regulations, and the terms and conditions of the federal funding. These internal controls should be in
compliance with guidance in "Standards for Internal Control in the Federal Government" issued by
the Comptroller General of the United States or the "Internal Control Integrated Framework", issued
by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
B. Comply with Federal statutes, regulations, and the terms and conditions of federal funds.
C. Evaluate and monitor the Contractor's compliance with statutes, regulations and the terms and
conditions of the federal funds.
D. Take prompt action when instances of noncompliance are identified including noncompliance
identified in audit findings.
E. Take reasonable measures to safeguard protected personally identifiable information and other
information that IHCDA or HUD designates as sensitive or the Contractor considers sensitive
consistent with applicable Federal, state, local, and tribal laws regarding privacy and obligations of
confidentiality.
66. Conflict of Interest Disclosure.
The Contractor must disclose in writing any potential conflict of interest to IHCDA.
67. Mandatory Disclosure.
The Contractor must disclose, in a timely manner, in writing to IHCDA all violations of Federal
criminal law involving fraud, bribery, or gratuity violations potentially affecting the Award. The
Contractor's failure to make these disclosures may subject to the Contractor to remedies of non-
compliance set forth in 2 CFR 200.338.
If the total value of the Contractor's currently active grants, cooperative agreements, and procurement
contracts from all Federal awarding agencies exceeds $10,000,000 for any period of time during the
period of performance of this Federal award, then the Contractor must maintain the currency of
information reported to the System for Award Management (SAM) that is made available in the
designated integrity and performance system (currently the Federal Awardee Performance and
Integrity Information System (FAPIIS)) about civil, criminal, or administrative proceedings described
in paragraph 2 of this award term and condition. This is a statutory requirement under section 872 of
Public Law 110-417, as amended (41 U.S.C. 2313). As required by section 3010 of Public Law I 1I-
212, all information posted in the designated integrity and performance system on or after April 15,
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2011, except past performance reviews required for Federal procurement contracts, will be publicly
available.
68. Closeout.
A. The Contractor must submit, no later than thirty (30) days after closeout of the program or
termination of this Agreement Date, all financial, performance information and other information as
required by the terms and conditions this Agreement.
B. The closeout of a Federal award does not affect any of the following:
1. The right of IHCDA to disallow costs and recover funds on the basis of a later audit or other
review.
2. The obligation of the Contractor to return any funds due as a result of later refunds,
corrections, or other transactions including final indirect cost rate adjustments.
3. Audit requirements in subpart F of 2 CFR part 200.
4. Recordkeeping and record retention requirements set forth herein.
69. Exhibits. Exhibits A, B, C, D, E, and F attached hereto, are fully incorporated herein.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
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Non -Collusion and Acceptance
The undersigned attests, subject to the penalties for perjury, that he/she is the Contractor, or that
he/she is the properly authorized representative, agent, member or officer of the Contractor, that
he/she has not, nor has any other member, employee, representative, agent or officer of the Contractor,
directly or indirectly, to the best of the undersigned's knowledge, entered into or offered to enter into
any combination, collusion or agreement to receive or pay, and that he/she has not received or paid,
any sum of money or other consideration for the execution of this Contract other than that which
appears upon the face of this Contract. Furthermore, if the undersigned has knowledge that a
state officer, employee, or special state appointee, as those terms are defined in IC 4-2-6-1, has
a financial interest in the Contract, the Contractor attests to compliance with the disclosure
requirements in IC 4-2-6-10.5.
In Witness Whereof, Contractor and IHCDA have, through their duly authorized representatives,
entered into this Contract. The parties, having read and understood the foregoing terms of this
Contract, do by their respective signatures dated below hereby agree to the terms thereof.
Indiana Housing and Community
City of South Bend APPROVED Development Authority
By: Board of Public Works By
:
Printed: AUG G 01 Printed: J. Jacob Sipe
Title: Title: Executive Director
Date: ate:
Approved by:
Indiana Department of Administration
By: (for)
Jessica Robertson, Commissioner
Date:
APPROVED as to Form and Legality:
Office of the Attorney General
Form approval has been granted by the
Office of the Attorney General pursuant to
IC4-13-2-14.3(e) on June 30, 2016
FA 16-21
Approved by:
State Budget Agency
By: (for)
Brian E. Bailey, Director
Date:
This document prepared by Brigitte Collier, Compliance Attorney.
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EXHIBIT A
NETWORK AGENCY SERVICES AND RESPONSIBILITIES
The Contractor shall serve as a trusted advisor to borrowers who are in default and facing foreclosure
and who are referred to the Contractor by the Indiana Foreclosure Prevention Network ("IFPN"). The
goal of the Contractor is to identify and attain the optimal housing solution for the IFPN client while
averting a foreclosure. Contractor shall provide the services described herein in compliance with the
standards and guidelines for the IFPN contained in the IFPN Participant Manual (the "Manual"),
which is incorporated herein by reference. The Contract to which this Exhibit is attached provides
additional payment levels for the following services:
Any client who received Level 1 and 2 counseling services prior to January 1, 2016 will be eligible
to be counseled again at any level.
Level One Counseling: (Action Plan Development) To qualify for a Level One payment ($150.00),
Contractor will be required to complete all of the following steps:
1. Intake. The Contractor must conduct an intake including client name and address, basic
demographic information, lender and loan information, and reason for delinquency. The
National Industry Standards for Homeownership Education and Counseling — Foreclosure
Intervention Specialty ("Standards") provide guidance on what should be included in an
Intake Form (See www.nw.org/nfmc). It is recommended, but not required, that contact
information for one additional person is collected at intake in the event that client moves or is
otherwise unable to be reached following initial intake. Contractor may conduct intake in a
variety of ways. Those that use electronic client management systems can submit a screenshot
from their system showing that the minimum required information has been collected. The
Contractor must ensure that the information is readily available in the client file when
requested by IHCDA or NFMC.
2. Authorization. The Contractor must collect a signed authorization form from the client or
have other legally -permissible client authorization on record that will allow Contractor to (a)
submit client -level information to the data collection system ("DCS"), (b) allow IHCDA and
NFMC to open files to be reviewed for program monitoring and compliance purposes, and (c)
allow IHCDA and NFMC to conduct follow-up with client related to program evaluation.
Clients may opt out of (c) above only, but proof of this must be retained in the client's file.
Clients that opt out of (a) or (b) above cannot be uploaded into the DCS. Files uploaded in to
the DCS without a signed authorization can create a legal liability, therefore the Contractor
must ensure client files submitted to the DCS have a signed authorization form in the client
file. Contractor is responsible for performing counseling within the limits of the laws in the
State of Indiana.
3. Disclosure. Contractor must provide to all clients a disclosure statement. The disclosure
statement must explicitly describe the various types of services the Contractor provides and
any financial relationships between the Contractor and any other industry partners. The
disclosure must state clearly that the client is not obligated to receive any other services
offered by the Contractor or its exclusive partners. This must be presented to the client at the
time of counseling. Proof that the client received the disclosure must be maintained in the
{00024811-1)
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file. Such proof can include a statement signed by the homeowner or an electronic signature,
if applicable.
4. Privacy Policy.r Contractor must provide to all clients a copy of its privacy policy. Proof that
the client received the policy must be maintained in the file. Such proof can include a
statement signed by the homeowner or an electronic signature, if applicable. Although it is a
best practice to provide the client with the privacy policy at the time of counseling, the
Contractor may elect to share the privacy policy after the counseling occurs. If that is the
case, Contractor must keep on file proof that the policy was sent to the homeowner via e-mail,
fax, or postal mail. Having access to the privacy policy on Contractor's website does not
satisfy this requirement unless there is affirmative confirmation and documented proof that
the client has reviewed the olicy in the file Clients that choose to opt -out and not share their
information with affiliated third -parties cannot be uploaded into the DCS for payment.
5. Budget. Contractor must develop a budget for each client based on client's oral representation
of their expenses, debts, and available sources of income. One example of a worksheet
Contractor may use to develop this budget can be found on the NFMC members' website at
www.nfmomembers.org.
6. Action Plan. Contractor must develop a written Action Plan for follow-up activities to be
taken by the client and review this Action Plan with the client. The Action Plan must be
clearly labeled in the client file. When developing this Action Plan, it is expected that the
Contractor will do a comprehensive analysis of the homeowner's situation and recommend a
best plan of action. The Action Plan must include the counselor's assessment of the client's
situation with a client -specific recommendation for a counseling plan of action. A general
handout with a variety of workout options or "Actions" is not acceptable. If the assessment
and recommendation are part of the counselor notes, IHCDA requires that the information is
transferred to a form titled Action Plan so that the assessment and course of action are clearly
defined for the client and for compliance testing. The National Industry Standards provide
guidance on what should be included in an Action Plan. (See www.nw.org/nfmc) NFMC has
also created a template Action Plan which is available on the NFMC members' website; use
of this template is not required. However, Contractor must have a conforming Action Plan in
each client file.
Making Horne Affordable Program Eligibility. Contractor must determine and document if
client is eligible for assistance through the Making Home Affordable Program for all intakes
conducted prior to the program expiration (Currently M14A is expected to expire on December
31, 2016) even if the client seeking counseling does not ask about the program.
Documentation that a screening occurred for each type of available assistance should be
included in the Action Plan and client file. NFMC has created a template screening checklist
which can be found on the NFMC members' website. Information on the Making Home
Affordable Program ("MHA') can be found at www.makinghomeaffordable.gov. Available
products in the MHA are subject to changes mandated by the U.S. Department of Treasury,
I It is acceptable for Contractor to combine the Authorization Form, Disclosure Statement, and Privacy Policy into a single
document which the client signs and the Contractor maintains in the client file.
{00024811-1}
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the administrators of MHA. Types of assistance offered through the Making Home Affordable
Program are:
a. Refinance. Contractor must determine and document eligibility by requesting
information and analyzing if: (a) client is the owner occupant of a one- to four -unit
property (required by the NFMC Program, not HARP); (b) loan is a first lien,
conventional mortgage that is owned or guaranteed by Fannie Mae or Freddie Mac —
counselor will verify this by checking the GSE's web look -up tools; (c) the client is
current on mortgage (client hasn't missed more than one payment in the last 12 months
and has not missed any payments in the past 30 days); (d) the client must have a source
income; and (e) the refinance improves the long-term affordability or stability of the
loan.
b. Modification. Contractor must determine and document eligibility by requesting
information and analyzing if: (a) the mortgage loan is a first lien mortgage loan
originated on or before January 1, 2009; (b) the mortgage has not been previously
modified under the Home Affordable Modification Program ("HAMP"); (c) the
borrower has experienced a hardship that has caused the mortgage loan to become
delinquent or default is reasonably foreseeable; (d) the property securing the mortgage
loan is not vacant or condemned; (e) the mortgage loan is secured by a one- to four -unit
property, one unit of which is the borrower's principal residence; (f) if client's front end
debt -to -income ("DTI") ratio is greater than 31 %; and (g) the current unpaid principal
balance of the mortgage is less than $729,750.00 for a one -unit property, $934,200.00
for a two -unit property; $1,129,250.00 for a three -unit property; and $1,403,400 for a
four -unit property.
c. FHA Loans. Contractor must determine and document eligibility by requesting
information and analyzing if: (a) the client is the owner of a one- to four -unit home; (b)
the client has income sufficient to support the new mortgage payments; and (c)) the
client has surplus income that is not more than 15% of his or her net income.
d. Short Sale and Deed -In -Lieu. Contractor must determine and document eligibility for
the Home Affordable Foreclosure Alternatives (HAFA) program by requesting
information and analyzing if: (a) client is or has been the owner occupant of a one to
four -unit property sometime during the last 12 months; (b) the homeowner has not
purchased a new property within the last 12 months; (c) because of a financial hardship,
the homeowner is delinquent or default is reasonably foreseeable (for Service Members,
this may include a Permanent Change of Station (PCS) order); (d) the mortgage loan is
a first lien mortgage loan originated on or before January 1, 2009; (e) the current unpaid
principal balance of the mortgage is less than $729,750 for a one -unit property, $934,200
for a two -unit property; $1,129,250 for a three -unit property; and $1,403,400 for a four -
unit property; or (f) the borrower has either been evaluated for a modification but is not
eligible or has been informed that modification may be an option and has elected to
pursue a short sale or deed -in -lieu instead.
When reporting for Level One counseling activities, all seven of these completed documents
must be in the client's file: intake, authorization, disclosure, privacy policy, budget, Action
Plan, and MHA eligibility determination. The Contractor must certify that all NFMC
{00024811-1)
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clients are owner -occupants of their homes at the time they receive counseling. By
existing statute, NFMC clients must be owner -occupants of single-family (one -to four -
unit) properties with mortgages in default or in danger of default.
The Contractor cannot receive payment for a client until after all the required actions for the level
have occurred and have been documented accordingly.
Level Two: Counseling: (Action Plan Implementation) To qualify for a Level Two payment $300.00
Contractor will be required to complete the following steps:
1. Authorization. If not already on file, Contractor must collect a signed authorization form
from the client or have other legally -permissible client authorization on record that will allow
the Contractor to (a) submit client -level information to the DCS for this grant, (b) allow
IHCDA and NFMC to open files to be reviewed for program monitoring and compliance
purposes, and (c) allow IHCDA and NFMC to conduct follow-up with client related to
program evaluation. Clients may opt -out of (c) above only, but proof of this opt -out must be
retained in the client's file. Clients that opt out of (a) or (b) above cannot be uploaded into
the DCS. Files uploaded in to the DCS without a signed authorization can create a legal
liability, therefore the Contractor must ensure client files submitted to the DCS have a signed
authorization form in the client file. Contractor is responsible for performing counseling
within the limits of the laws in the State of Indiana.
2. Disclosure. Contractor must provide to all clients a disclosure statement. The disclosure
statement must explicitly describe the various types of services the Contractor provides and
any financial relationships between the Contractor and any other industry partners. The
disclosure must state clearly that the client is not obligated to receive any other services
offered by the Contractor or its exclusive partners. This must be presented to the client at the
time of counseling. Proof that the client received the disclosure must be maintained in the
file. Such proof can include a statement signed by the homeowner or an electronic signature,
if applicable.
3. Privacy Policy.2 Contractor must provide to all clients a copy of its privacy policy. Proof that
the client received the policy must be maintained in the file. Such proof can include a
statement signed by the homeowner or an electronic signature, if applicable. Although it is a
best practice to provide the client with the privacy policy at the time of counseling, the
Contractor may elect to share the privacy policy after the counseling occurs. If that is the
case, Contractor must keep on file proof that the policy was sent to the homeowner via e-mail,
fax, or postal mail. Having access to the privacy policy on Contractor's website does not
information with affiliated third parties cannot be uploaded into the DCS for payment.
4. Budget Verification. Contractor must engage in budget verification during which s/he
reviews documented evidence provided by the client to establish true debt obligations (e.g.,
2It is acceptable for Contractor to combine the Authorization Form, Disclosure Statement, and Privacy Policy into a single
document which the client signs and the Contractor maintains in the client file.
{00024811-1)
Page 26 of 39
credit report), monthly expenses (e.g., monthly bills, bank statements, mortgage statement,
credit card statement, utility bill) and spending patterns, and realistic opportunities for income
(e.g., tax returns, pay stubs, profit and loss statement, third party verification). Note: a credit
report alone does not satisfy the budget verification requirement. Contractor should collect
verification of all income, expenses, and debt as stated by the client (must be within previous
30 days). A credit report alone does not satisfy the budget verification requirement.
5. Verification of Action Taken. Contractor should take appropriate actions upon the steps
outlined in the written Action Plan (created during Level One). Contractor must have
documented evidence of "action" taken on behalf of the client. This requires more than the
counselor's notes; it also requires documentation that the action took place. This could
include, but is not limited to, the following:
a. Draft and submit hardship letter to servicer that describes the client's situation, reason for
delinquency, factors that should be considered when developing a workout plan, and an
estimate of the housing cost the client can afford to pay. Contractor must keep on file a
copy of the fax transmission report, e-mail, portal transmission screenshot, or postal mail
receipt as evidence that this was submitted to servicer.
-b. Document an attempt to contact the servicer or lender via fax transmission receipt, e-mail,
or postal mail receipt. If a workout is possible, fill out and submit forms required by the
service to move forwardwith aworkoutplan, loan modification or other available program
and maintain proof that these were submitted in the client file (fax transmission receipt, e-
mail, portal transmission screenshot, or postal mail). E-mail contact information for
servicers who have made such information is available on www.nw.org/nfmc.
c. Complete and submit application for local resource options including refinance programs
or rescue funds and document that referral took place via fax transmission receipt, e-mail,
or postal mail receipt.
d. Assist in situations where client elects to pursue sale options and document the assistance
that took place and communication with industry partners via fax transmission report, e-
mail portal transmission screenshot, or postal mail. A referral list of realtors for a short
sale, or other sale options, must include at least three realtors and the client's signature
stating they received the list. This signed referral list should be retained in the file. Please
note that referring a client back to the servicer/lender is not considered a referral. .
e. Collecting and transmitting documentation required for Making Home Affordable
Program refinance or modification decisions, if that is what Action Plan dictates.
Contractor should keep on file a copy of the fax transmission report, e-mail, portal
transmission screenshot, or postal mail receipt as evidence that this was submitted or
servicer.
Note: Neither Counselor Notes nor telephone logs satisfy the requirement for documenting
Verification of Action Taken, as neither provide verifiable proof that any action took place. Fax
transmission sheets, e-mails, mail receipts, screenshots of portal communication, or other
verification that action took place is required to be retained in the client's file.
{00024811-1)
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When reporting for Level Two counseling activities, all five of these completed documents must
be in the client's file: authorization, disclosure, privacy policy, budget verification, and
verification of action taken based on the Action Plan. The Contractor must certify that all
NFMC clients are owner -occupants of their homes at the time they receive counseling. By
existing statute, NFMC clients must be owner -occupants of single-family (one -to four -unit)
properties with mortgages in default or in danger of default.
Note: Starting with Round 3, NFMC no longer has a "Level Three" counseling designation.
Clients that would previously have been reported as Level Three should now be reported twice
— once at Level One, and once at Level Two.
Treasury Directive 13-08 now allows payments to be made to counseling agencies for providing
post -modification counseling in certain circumstances; Clients that would previously have been
reported as "Level Four" should now only be reported as "Level Four" if they have a
Government Sponsored Entity ("GSE") loan or loan owned or guaranteed by the Veterans
Administration ("VA") the Department of Agriculture's Rural Housing Service ("RHS"), or
the Federal Housing Administration ("FHA"). If the Contractor participates as a referral
agency that receives compensation for providing post -modification counseling for Fannie Mae
or Freddie Mac it must not report those same clients as NFMC "Level Four" clients.
Level Counseling: Making Home Affordable/Post-Mitigation Counseling
Borrowers with a trial loan modification or permanent loan modification under the Home
Affordability Modification Program ("HAMP") who need post -modification financial counseling and
have a Government Sponsored Entity Loan, or loan owned or guaranteed by the Veterans
Administration ("VA"), the Department of Agriculture's Rural Housing Service ("RHS"), or the
Federal Housing Administration ("FHA") are eligible for Level Four counseling.
If a borrower contacts the Contractor for counseling or is referred by a servicer or other agency, the
Contractor will work with the borrower to submit an intake package to the servicer. This counseling
must conform to Level One and Level Two counseling requirements. If the borrower does receive a
trial loan modification or permanent loan modification under HAMP from a compliant loan source,
the Contractor can provide the borrower with Level Four counseling, as described in the Counseling
Protocol that can be found on the NFMC Program members' site.
The Contractor cannot receive payment for a client until after all the required actions for the level
have occurred and have been documented accordingly.
Level 4a Counseling: (Initial Making Home Affordable Counseling) To qualify for a Level 4a
payment ($300.00), the Contractor will be required to complete all of the following steps:
1. Verification of Client Loan Source. The Contractor must provide documentation that
verifies the client's loan source is GSE, RHS, FHA, or VA. Documentation can include but
is not limited to a screenshot from the Making Home Affordable website loan look -up tool,
or from Fannie or Freddie's loan look -up tool. Additional tools for specific loan types can
include but is not limited to:
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Page 28 of 39
For VA loans, VA can research loans by using either the social security number or the
loan identification number. Counselor can send an authorization form to obtain
required documentation.
For FHA loans, a FHA Connection printout with loan information can be used.
HUD-1 (Homeowner's HUD 1 will have this information)
2. Trial or Permanent Loan Modification Verification. Organization shall keep on file
documentation that proves the client currently has a trial loan modification or permanent loan
modification. This can include but is not limited to the trial modification agreement, or a letter
(e-mail will suffice) from the servicer documenting the trial modification.
3. Authorization. Contractor must collect a signed authorization form from the client or have
other legally -permissible client authorization on record that will allow organization to (a)
submit client -level information to the DCS for this grant, (b) allow IHCDA and NFMC to
open files to be reviewed for program monitoring and compliance, and (c) allow IHCDA and
NFMC to conduct follow-up with client related to program evaluation. Clients may opt -out
of (c) above only, but proof of this opt -out must be retained in the client's file. Clients that
opt out of (a) or (b) above cannot be uploaded into the DCS. Files uploaded in to the DCS
without a signed authorization can create a legal liability, therefore the Contractor must ensure
client files submitted to the DCS have a signed authorization form in the client file. Contractor
is responsible for performing counseling within the limits of the laws in the State of Indiana.
4. Disclosure. Contractor must provide to all clients a disclosure statement. The disclosure
statement must explicitly describe the various types of services the Contractor provides and
any financial relationships between the Contractor and any other industry partners. The
disclosure must state clearly that the client is not obligated to receive any other services
offered by the Contractor or its exclusive partners. This must be presented to the client at the
time of counseling. Proof that the client received the disclosure must be maintained in the
file. Such proof can include a statement signed by the homeowner or an electronic signature,
if applicable.
5. Privacy Policy.3 Contractor must provide to all clients a copy of its privacy policy. Proof that
the client received the policy must be maintained in the file. Such proof can include a
statement signed by the homeowner or an electronic signature, if applicable. Although it is a
best practice to provide the client with the privacy policy at the time of counseling, the
Contractor may elect to share the privacy policy after the counseling occurs. If that is the
case, Contractor must keep on file proof that the policy was sent to the homeowner via e-mail,
fax, or postal mail. Having access to the privacy policy on Contractor's website does not
satisfy this requirement unless there is affirmative confirmation and documented proof that
the client has reviewed the policy in the file. Clients that choose to opt -out and not share their
information with affiliated third -parties cannot be uploaded into the DCS for payment.
3It is acceptable for Contractor to combine the Authorization Form, Disclosure Statement, and Privacy Policy into a single
document which the client signs and the Contractor maintains in the client file.
{0002481 1 -1 )
Page 29 of 39
6. Budget Verification. Contractor must engage in budget verification during which s/he
reviews documented evidence provided by the client to establish true debt obligations (e.g.,
credit report), monthly expenses (e.g., monthly bills, bank statements, mortgage statement,
credit card statement, utility bill) and spending patterns, and realistic opportunities for income
(e.g., tax returns, pay stubs, profit and loss statement, third party verification). Contractor
should collect verification of all income, expenses, and debt as stated by the client (must be
within previous 30 days). Note: a credit report alone does not satisfy the budget verification
requirement; sources of income are also required to be retained in the client's file.
7. Documentation of DTI. Using the verified budget, the Contractor will calculate the back end
debt -to -income ("DTI") ratio. The back end DTI ratio is the ratio of the borrower's total
monthly debt payments to the borrower's Monthly Gross Income. A standard for calculating
back end DTI is included in the Counseling Protocol on NFMC's members' website. A
document indicating the calculation must be in the file, as well as evidence of income and
debt. A credit report is not sufficient to calculate the DTI ratio, as income must also be
validated.
S. 4a Action Plan. Contractor will create an Action Plan which includes a timeline to eliminate
unnecessary debt, minimize expenses, increase income, and increase savings. In addition, the
Action Plan should include a plan for staying current on the trial or permanent loan
modification as well as any applicable referrals. Different from a Level One Action Plan, the
4a Action Plan is focused on how the client can maintain the trial modification and manage
his/her budget. If these items are part of the counselor's notes, NFMC requires that the
information be transferred to a form titled 4a Action Plan so that the assessment and course
of action are clearly defined for the client and for compliance testing.
9. Counsel on Staving Current. Contractor must discuss terms of mortgage and how to stay
current — even if/when rate resets, explain the incentive component and that if the client
redefaults s/he will be terminated from the program. A loan will be considered to have
redefaulted when the borrower reaches a 90-day delinquency status under the Mortgage
Banker Association delinquency calculation. Note: in order to successfully complete the
initial trial period (at minimum three payments at modified terms), a borrower must be current
by the third payment.
10. Referrals. Refer to j ob training or referral programs if applicable
11. Date of Follow -Up Meeting. Establish follow-up schedule with borrower, with at least one
additional appointment, as required by the Action Plan. It is expected that a client will notify
their counselor if they have a significant change in circumstances. During the follow-up
meeting, the Contractor must discuss terms of mortgage and how to stay current- even
if/when the interest rate resets, explain the incentive component and explain that if the client
re -defaults s/he will be terminated from the program. A loan will be considered to have re -
defaulted when the borrower reaches a 90-day delinquency status under the MBA delinquency
calculation. Documentation to validate this requirement can include, but is not limited to, a
letter to the client scheduling the appointment or detailed counselor notes that indicate the
date of the next appointment and the requirements of the client for the next appointment.
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In order to report a client as having received Level 4a counseling, the following documents must be
in the client's file: verification of client loan source, trial or permanent loan modification verification,
authorization, disclosure, privacy policy, budget verification, documentation of back end DTI, Action
Plan that would include applicable referrals, and date of follow-up meeting.
The Contractor must certify that all NFMC clients are owner -occupants of their homes at the
time they receive counseling. By existing statute, NFMC clients must be owner -occupants of
single-family (one- to four -unit) properties with mortgages in default or in danger of default.
The Contractor is responsible for ensuring proper documentation exists in client files. The
Contractor cannot receive payment for a client until after all the required actions for the level have
occurred and have been documented accordingly.
Level 4b Counseling: (Counseling) Level 4b ($150.00) can only be reported when a Level 4a client
has completed one follow-up session and the following documents are in the file:
Authorization. If not already on file, Contractor must collect a signed authorization form
from the client or have other legally -permissible client authorization on record that will allow
the Contractor to (a) submit client -level information to the DCS for this grant, (b) allow
IHCDA and NFMC to open files to be reviewed for program monitoring and compliance, and
(c) allow IHCDA and NFMC to conduct follow-up with client related to program evaluation.
Clients may opt -out of (c) above only, but proof of this must be retained in the client's file.
Clients that opt out of (a) or (b) above cannot be uploaded into the DCS. Files uploaded in to
the DCS without a signed authorization can create a legal liability, therefore the Contractor
must ensure client files submitted to the DCS have a signed authorization form in the client
file. Contractor is responsible for performing counseling within the limits of the laws in the
State of Indiana.
2. Disclosure. Contractor must provide to all clients a disclosure statement. The disclosure
statement must explicitly describe the various types of services the Contractor provides and
any financial relationships between the Contractor and any other industry partners. The
disclosure must state clearly that the client is not obligated to receive any other services
offered by the Contractor or its exclusive partners. This must be presented to the client at the
time of counseling. Proof that the client received the disclosure must be maintained in the
file. Such proof can include a statement signed by the homeowner or an electronic signature,
if applicable.
3. Privacy Policy.° Contractor must provide to all clients a copy of its privacy policy. Proof that
the client received the policy must be maintained in the file. Such proof can include a
statement signed by the homeowner or an electronic signature, if applicable. Although it is a
best practice to provide the client with the privacy policy at the time of counseling, the
Contractor may elect to share the privacy policy after the counseling occurs. If that is the
case, Contractor must keep on file proof that the policy was sent to the homeowner via e-mail,
fax, or postal mail. Having access to the privacy policy on Contractor's website does not
satisfythis his requirement unless there is affirmative confirmation and documented proof that
4It is acceptable for Contractor to combine the Authorization Form, Disclosure Statement, and Privacy Policy into a single
document which the client signs and the Contractor maintains in the client file.
(00024811-1)
Page 31 of 39
the client has reviewed the policy in the file Clients that choose to opt -out and not share their
information with affiliated third -parties cannot be uploaded into the DCS for payment.
4. Documentation of DTI. Using the verified budget, the Contractor will calculate the back end
DTI ratio. The back end DTI ratio is the ratio of the borrower's total monthly debt payments
to the borrower's Monthly Gross Income. A standard for calculating back end DTI is included
in the Counseling Protocol on the NFMC members' website. A document indicating the
calculation must be in the file, as well as evidence of income and debt. A credit report is not
sufficient to calculate the DTI ratio, as income must also be validated.
S. Update on Verified Budget. Contractor will document borrower's ability to keep to crisis
and/or long-term budget whichever was discussed during Level 4a counseling. This can
include but is not limited to; new documentation to verify budget, mortgage statement or credit
report showing timely payments to the trial modification or a copy of the client's permanent
modifications dated after the initial Level 4a counseling session.
6. Status of Borrower's Modified Loan. Contractor must verify status of borrower's
payment(s) on modified loan. Proof of this includes, but is not limited to, a current mortgage
statement that details the status of the client's payments, communication from the servicer
regarding the loan, or a copy of the credit report verifying the client's timeliness of payments.
7. Progress against Action Plan. Contractor must document borrowers' progress against the
Action Plan developed during the first visit. Counselor notes or narrative could meet part of
this requirement, as could a credit report pulled to ensure the client is paying their debt(s).on
time. An updated crisis or long-term budget reflecting that the client is on track will also meet
part of this requirement, but the Contractor must also address specific steps in the Action Plan
and if the client has met them. If a narrative is used, it should be clear that it is pertaining to
the progress against the Action Plan.
In order to report a client as having received Level 4b counseling, the following documents must be
in the file: authorization, disclosure, privacy policy, documentation of DTI, update on verified
budget, status of borrower's modified loan, and progress against Action Plan.
The Contractor must certify that all NFMC clients are owner -occupants of their homes at the
time they receive counseling. By existing statute, NFMC clients must be owner -occupants of
single-family (one- to four -unit) properties with mortgages in default or in danger of default.
The Contractor is responsible for ensuring proper documentation exists in client files. The
Contractor cannot receive payment for a client until after all the required actions for the level have
occurred and have been documented accordingly.
Maximum Payout:
If the client has aback -end DTI ratio at or above 55%, the Contractor is eligible to receive a maximum
payout of $450.00 (the sum of Level 4a and Level 4b fees).
If the client does not have a back -end DTI ratio at or above 55%, the Contractor is eligible to receive
a maximum payout of $450.00 (the sum of Level 1 and Level 2).
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Level 4a and Level 4b services are the Making Home Affordable Program substitutes for Level 1 and
Level 2 services, respectively, and as such, the Contractor is never eligible to receive any combination
of Level 1 and 2 fees with Level 4a and 4b fees.
Termination of Counseling:
The Contractor must document every termination of counseling. Termination occurs or may occur
under any of the following conditions:
1. Counselor has made three attempts to contact the client, issued an "Unable to Reach" letter,
and has not heard back from the client within 31 days of the date the letter was issued;
2. Client meets his or her housing needs or resolves the housing problem;
3. Counselor determines that further counseling will not meet the client's housing needs or
resolve the client's housing problem;
4. Client terminates the counseling without resolving the housing problem;
5. Client does not follow the agreed -upon counseling and Action Plan; or
6. Client repeatedly fails to appear for counseling appointments.
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[REMAINDER OF PAGE INTENTIONALLY LEFT BLAND
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EXHIBIT B
FEESCHEDULE
For performing the services required by the Contract to which this Exhibit B is attached and in
accordance with Exhibit A to IHCDA's satisfaction, Contractor will be paid according to the
following fee schedule. Unless otherwise indicated in the schedule, Contractor is responsible for any
and all expenses incurred in rendering its services under this Contract. Claims shall be submitted
once per month via the IHCDAonline.com system.
FEE
PAYABLE
PROCESS
Submit the following required documentation and invoice
by the fifth (5') day of each month:
1. Intake form;
2. Authorization form;
Completion of
3., Disclosure form;
$150.00/client
Level 1
4. Privacy policy;
5. Household budget;
6. Action Plan;
7. MHA eligibility determination; and
8. Certification that each client is an owner -occupant of
his or her home.
Submit the following required documentation and invoice
by the fifth (5th) day of each month:
1. Authorization form;
2. Disclosure form;
3. Privacy policy;
4. Verified household budget;
5. Verification of action taken based upon Action Plan.
$300.00/client
Completion of
(Neither Counselor Notes nor telephone logs satisfy
Level
the requirement for documenting Verification of
Action Taken, as neither provides verifiable proof that
any action took place. Fax transmission sheets, e-
mails, mail receipts, screenshots of portal
communication, or other verification that action took
place is required to be retained in the client's file.); and
6. Certification that each client is an owner -occupant of
his or her home.
{00024811-1)
Page 34 of 39
Submit the following required documentation and invoice
by the fifth (P) day of each month:
1. Verification of client loan source;
2. Trial or Permanent Loan Modification Verification;
3. Authorization Form;
4. Disclosure Form;
S. Privacy Policy;
6. Verified Household Budget;
Completion of
7. Documentation of back end DTI ratio;
$300.00/client
Level 4a
8. Action Plan (If these items are part of the
counselor's notes, NFMC requires that the information
be transferred to a form titled 4a Action Plan so that
the assessment and course of action are clearly defined
for the client and for compliance testing.);
9. Counsel on Staying Current;
10. Referrals;
11. Date of follow-up meeting; and
12. Certification that each client is an owner -occupant of
his or her home.
Submit the following required documentation and invoice
by the fifth (5a') day of each month:
1. Authorization Form (if not already on file);
2. Disclosure Form;
3. Privacy Policy;
$150.00/client
Completion of
4. Documentation of back -end DTI at time of second
Level4b
appointment;
5. Update on Verified Household Budget;
6. Status of client's modified loan;
7. Progress against the Action Plan; and
8. Certification that each client is an owner -occupant of
his or her home.
12
installments,
Program
Administration
sum total notEach
month, submit invoice for 1/12 of Program
Budget -Not to
to exceed
Administration Budget amount ( $2 560.00), provided
exceed 19.25%
Program
Administration
Contractor submitted claims in the corresponding
of the Contract
Budget
month.
total.
amount of
$2,560.00.
Unless modified in writing and signed by the parties in the same manner as me t.vuuacL LU w.,11., L.__.
Exhibit B is attached, the total amount of fees under this Contract shall not exceed Thirteen
Thousand, Two Hundred Ninety -Seven and 87/100 Dollars ($13,297.87).
{00024811-1)
Page 35 of 39
{00024811-1}
EXHIBIT C
FEDERAL FORM W-9
REQUEST FOR TAXPAYER IDENTIFICATION
NUMBER AND CERTIFICATION
HTTP://W W W.IRS. GO V/PUB/IRS-PDF/F W 9.PDF
Contractor to Fill Out Form on IRS Website and Attach
Page 36 of 39
W�7
Request for Taxpayer
Give Form to the
Form
(Rev, Decemher 2074)
Identification Number and Certification
requester. Do not
send to the IRS.
Dlevrt1
ntor the04)Wy
Internal
Pevenue Service
1 Name (as shown on your income tax return). Name Is required on this line; do not leave this line blank.
City of so,uth Bend
2 Busihess nwneldisregarded entity name, if different from above
N
W
m
N
°-
3 Check appropriate box for federal tax classification; check only one of the following seven boxes:
4 Exemptions (caries apply pnylo
tiesin enti, not individuals; see
ccerta
❑ Individualiscle proprietor or ❑ C Corporation ❑ S Corporation ❑ partnership ❑ TmsUestate
instructions' on page 3):
° c
single -member LLC
Exempt payee coded any)
tt °
Limited liability company. Enter the tax classification (C=C corporation, S=S corporation, P=partnership)►
0 2
Note. Fora single -member LLC that is disregarded, do rot check LLC; check the appropriate box in the line above for
Exemption from FATCA reporting
y
the tax classification of the single -member owner.
code(if any)
= 5
Other (see instructfons)► Government
rMcue. i. c .e;wo.M.d Art .'W US)
—
,Q
SAddress(humber; street, and apt. or suite no.)
requester's name and address (options)
227 W Jefferson Blvd.
-
6 City, state, and ZIP code
a -
N
South Bend IN 46601
7 Lis account numbers} here (optional)
Taxpayer Identification Number (TIN)
Enteryour TIN in the appropriate box. The TIN provided must match the name given online Ito avoid Iaoaei se°umr nuoenr
backup withholding. For individuals, this is generally your social security number (SSN). However, fora _ m —�
resident alien, sole proprietor, or disregarded entity, see the Par[ I instructions on page 3. For other
entities, it is your employer identification number (EIN). If you do not have a number, see How fo gate FM
TIN on page 3. or
Note. If the account is in more than one name, see the instructions for fine 1 and the chart on page 4 for IEmployer identification number
guidelines on whose number to enter. 3 6 — 6 0 0 1 -2 0 1
Certification
Under penalties of perjury, I certify that:
1. The number shown on this form is my correct taxpayer identification number (or I am wailing for a number to be issued to me); and
2. 1 am not subject to backup withholding because: (a) 1 am exempt from backup withholding, or (b)1 have not been notified by the Internal Revenue
Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am
no longer subject to backup withholding; and
3. 1 am a U.S. citizen or other U.S. person (defined below); and
4. The FATCA code(s) entered on this form (if any) indicating that I am exempL from FATCA reporting is correct.
Certification instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding
because you have failed to report all interest and dividends on your tax return. For real estate transactions, item 2 does not apply. For mortgage
interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement arrangement (IRA), and
generally, payments otherthan interest and dividends, you are not required to sign the certification, but you must provide your correct TIN. See the
instructions on pace
3-
,�iqn Signature o
General Instructions
Section references are to the Internal Revenue Code unless otherwise noted.
Future developments. Information about developments affecting Form W-9 (such
as legislation enacted after we release It) Is at www.irs.govffiv9.
Purpose of Form
An individual or entity (Form W-9 requester) who is required io file an information
return with the IRS must obtain your correct taxpayer identification number (TIN)
which may be your social security number (SSN), individual taxpayer identification
number (ITIN), adoption taxpayer identification number (ATIM.'or employer
Identification number (EIN), to report on an information return the amount paid to
you, or other amount reportable on an information return. Examples of information
returns include, but are not limited to, Lire following:
• Form 1099-INT (Interest earned or paid)
• Form 1099-DIV (dividends, Including those from stocks or mutual funds)
• Form 1099-MI SC (various types of income, prizes, awards, or gross proceeds)
r Form 1099-B (stock or mutual fund sales and certain other transactions by
brokers)
• Form 1099-5 (proceeds from real estate transactions)
• Form 1099-K (merchant card and third party network transactions)
• Form 1098 (home mortgage interest), 1098-E (student loan interest), 109E-T
(tuition)
• Form 1099-C (canceled debt)
• Form 1099-A (acquisition or abandonment of secured property)
Use Form W-9 only if you are a U.S. person including a resident alien), to
provide your correct TIN.
ltyou do not return Farm W-9 to the requester with a TM, you might be subject
to backup withholding. See What Is backup withholding? on page 2.
By signing the filled -out forth, you:
1. Certify that the TIN you are giving Is correct (or you are waiting for a number
to be issued),
2. Certify that you are not subject to backup withholding, or
3. Claim exemption from backup withholding if you are a U.S. exempt payee. If
applicable, you are also certifying that as a U.S'. person, your allocable share of
any partnership income from a U.S. trade or business is not subject to the
withholding tax on foreign partners' share of effectively connected income, and
4. Certify that FATCA code(s) entered on this Ions (if any) Indicating that you are
exempt from the FATCA reporting, is correct. See What is FATCA reporting? on
page 2 for further information.
Cat. No. 10231x Form
EXHIBIT D
CONTRACTOR'S INTERNAL PRIVACY/
CONFIDENTIAL INFORMATION POLICY
Check one:
❑ Internal Privacy/Confidential Information Policy is attached hereto.
-In the Alternative -
CB/ If contractor has previously provided IHCDA with a copy of the Contractor's Internal
Privacy/Confidential Information Policy, and such policy has not changed, the Contractor shall
complete the following instead of resubmitting its policy:
Contractor's Internal Privacy/Confidential Information Policy has not changed since the time it
was submitted to IHCDA in conjunction with Contract # 4 j&/ - 42 - %FIOA( - 0/�
City of South Bend
IC A
Printed:Board Of Public Works
Date:
(00024811-1)
Attested by (where applicable):
Page 37 of 39
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EXHIBIT F
STANDARDS FOR HOMEOWNERSHIP EDUCATION AND COUNSELING —
FORECLOSURE INTERVENTION SPECIALTY
Contractor shall download the National Industry Standards Form it must be executed by
each counselor and with an executed copy of this Contract.
http://Www.homeownershipstandards.com[Uploads/National%20Industry%20Standards %
20Code%20of%20Ethics %20and%20Conduct%20Form.pdf
(00024811-1)
Page 39 of 39
Homtfmawmbip
Da. ftht-
INSTRUCTIONS:
National Industry Standards for
Homeownership Education and Counseling
Code of Ethics and Conduct
The Code of Ethics and Conduct is an essential component of the
National Industry Standards for Homeownership Education and
Counseling. It is required that a signed copy be kept on file within
your office for each counselor listed in your organization profile, and
made available upon request. It is important that counselors read,
sign and agree to abide by the Code of Ethics and Conduct and the
guidelines set forth in the National Industry Standards for
Homeownership Education and Counseling.
(Please fill out all fields below)
❑ By checking this box c
have received and rea thi
Ethics and Cond9or Ho
to adopt and a er to the
signing below), I acknowledge that I
//
Signature:V/6
(�/�'
Print Name: e t D
Company: i 07//ln
Address:
Telephone:
Email:
Web Site: 12
Date:
astry Standards Code of
Professionals and agree
outlined.
Save digital copies on a
computer in your office:
1. Have each counselor
read the Code of Ethics
and Conduct guidelines
and fill out this PDF form
on the computer.
2. Make sure each
counselor checks the
signature box indicating
that he/she has read and
agreed to the guidelines.
3. Save and file each
counselor's PDF form
electronically.
No
Keep printed copies on
file in your office:
1. Print out as many
copies of the form as
necessary and have each
counselor read the Code
of Ethics and Conduct
guidelines and fill out the
form.
2. Make sure each
counselor signs the form
indicating that he/she has
read and agreed to the
guidelines.
3. Keep the signed hard
copies on file in your
office.
>r
BILL NO., 125-79
ORDINANCE NO. Jb e_,57- 7
AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY
OF SOUTH BEND, INDIANA, ESTABLISHING A NON -
REVERTING "INSURANCE PREMIUM AND LIABILITY
RESERVE FUND".
STATEMENT OF PURPOSE AND INTENT;
The City Administration has determined that it would be
in the City's best interest to. retain a larger share of its
potential liabilities in view of current upwards trends in the
municipal insun-ante market. The Ordinance is proposed as a method
for retaining such risks, paving premiums and providing the mechanism
'to service such retained risks and potential liabilities.
WHEREAS, the Common Council. of the City of South Bend has
determined that it is in the best interests of the City that the.
City become self -insured in certain areas of public liability
imposed upon it by law arising from the ownership of property and .
_acts ofits employees. in the course of providing services; and
WHEREAS; the Common Council has .determined that the City has
the' financial ability to accomplish its own funding to cover said
areas of retained liability and that it would be to the fiscal
.. advantage of the .City to do so.
NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL
OF THE CITY.OF SOUTH BEND:
SECTION I. Reserve Fund Created
Ageneral *uon-reverting fund is hereby created to be known
as the "Liability Insurance Premium and Reserve Fund", Said fund
is created for the purpose of setting aside monies, assessed on
all operations and departments of the City, for the payment of any
premium for outside coverage, claims arising from.retained risk and
all incidental costs associated with any claims arising from said
retained risk including, but not limited to; investigative and legal
fees. Said reserve fund also shall be used for the purpose of funding
the administrative positions or contractual services of a risk manager,
legalcounsel, claims adjuster, and necessary support personnel.
Said fund may be used for a source of temporary loans
to other City funds but shall in no way be assessed for permanent
loans.
Said fund shall be invested by the Controller''s Office
with all earned interest belonging to said fund in it's entirety.
SECTION I(A), Payment of Certain Departmental Safety
Coordinators
The administration and common council to dramatize.thei't
commitment to employee and job safety, and also to recognize
that certain employee safety coordinators will be performing this
duty outside of the normal work duties 'do hereby authorize the payment
of a stipend in addition to their normal wages in the amount of $100.00
annually. The following safety coordinator positions shall be in
this category..
. Traffic and Lighting
Municipal Carage'
Rives Bend Plaza Maintenance
Bureau of Sewers
Bureau of Streets
Waste Water Treatment Plant:
Water Works (North Pumping Station)
Water Works (Olive Street Station)
Parking Garages
f'
SECTION II. Source o£.Funds
Said fun
shall be funded by amounts appropriated by the
Council as part of the annual general budgeting process for all
departments, bureaus, and boards of the City. In addition, the
Council may approve additional appropriations as needed from
these same sources,
SECTION III. Expenditure of Funds
No expenditure of funds or payment of .claims arising from
the City's retention,of liability shall be made by the Board of
Public Works N�itbout the approval of,both the City Controller
" or his named representative, and the City Attorney or his named
representative, Insurance premiums shall be paid on policies.
Bend B
acquired through the processs-described in 16-21 .of the South
'Municipal Code as needed upon approval by the Controller's office.
Incidental contractual expenses which may occur as a result of
retained liability claims shall be submitted to the Board of
public Works for payment. upon. approval of. both the City Controller
or his named representative and the City Attorney_or his named
representative.
SECTION IV. This Ordinance shall take effect and be in
force January 1, 1980 and passed by the South Bend Common Council
on the day of 1979.
W READING f-2�1-?i
PUBLIC NEARING
Rnd READING
NOT APPROVED .
REFERRED .
PASSED
. ember the on Council
$EP 1 c; 1979
trMe Carlipi
CISI'Fu.gIF 50P !i!i:pp, R
D
„,
i
�����oluilDNe/y
CITY SpUTBEND �� 2
PETERR J. NEM ETN, Mayor
COUNTY -CITY BUILDING SOUTH BEND, INDIANA 45601
iNDIaNP
P.,¢, H. Mullen
. Direm cl, Ad.WIH.Iinn and Yt9@84 916]
Finance
September 19,.1979
Members of the Council
South Send Common Council
4th Floor County -City Bldg.
Dear Council Members:'
. There will be presented at first reading of the September 24, 1979
.Council meetinganordinance which will enable the City to
make major changes in administering it's property and liability
insurance program, .
During the last 10 years, we have seen the cost of the City's
. insurance package increase from about $86,000.00 to $868,000,00
in 1979. In.lieu of this. financially escalating situation, we
feel it.is time to evaluate.our position and look at alternative
methods of financing the . potential -risks created through the
day to day operation of the City. It is felt that the best wey
for the City to handle this situation is using combined programs
of self insurance and outside coverage depending on the specific
risk.
During the-1979 legislative session of the Indiana General
Assembly a law was inacted which now allows cities to set up a
cumulative fund to be used for the purpose of defraying those
expenses normally associated with providing insurance coverage
or retaining risk. The ordinance accompanying this letter
.would authorise said fund, but more importantly, would support
in full the city's action in becoming self reliant in the area
of insurance,
.It is felt that the city is in apposition. both financially and
Professionally to evaluate it's operations and decide which
.should be insured through outside sources and which should fall
into the category of retained risks. -
0
CITY OF SOUTH BEND
SOUEh Bend, IN 46601
Page Two
September 19, 1979
i Members of the Common Council
Mr. Vance and I would like to sit down with Council in caucus
and explain more fully the details,. benefits and risks of
pursuing this course of action,
If you have further questions, please feel free to contact
my office or Mr. Vance. _
PHM/bkn
St u
t
4
IC 34-13-3-4
Limitation on aggregate liability; punitive damages prohibited
Sec. 4. (a) The combined aggregate liability of all governmental entities and of all
public employees, acting within the scope of their employment and not excluded from
liability under section 3 of this chapter, does not exceed:
(1) for injury to or death of one (1) person in any one (1) occurrence:
(A) three hundred thousand dollars ($300,000) for a cause of action that accrues
before January 1, 2006;
(B) five hundred thousand dollars ($500,000) for a cause of action that accrues on
or after January 1, 2006, and before January 1, 2008; or
(C) seven hundred thousand dollars ($700,000) for a cause of action that accrues
on or after January 1, 2008; and
(2) for injury to or death of all persons in that occurrence, five million dollars
($5,000,000).
(b) A governmental entity or an employee of a governmental entity acting within the
scope of employment is not liable for punitive damages.
As added by P.L. 1-1998, SEC 8. Amended by P.L. 108-2003, SEC 2; P.L.161-2003,
SEC 6; P.L.97-2004, SEC 114,