The URL can be used to link to this page

Home My WebLink AboutAgreement - Hurry Home - Home Ownership Financing Program1316 COUNTY-Crry BUILDING 227 W. JEFFEMN Boui,EVARD Soum BEND, INDIANA 46601-,1830 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR BOARD OF PUBLIC WORKS June 12, 2018 John Gibbons Hurry Home 1400 E Angela Blvd, #148 South Bend, IN 46617 RE: Agreement Dear Mr. Gibbons: PHONE, 574/235-9251 1"'AX 574/ 2359171 The Board of Public Works, at its meeting held on June 12, 2018, approved the above referenced agreement regarding the donation of funds to the Home Ownership Financing Program in the amount of $80,000, Enclosed please find the original of the agreement for your signature. Please sign and return the original agreement to our office and retain a copy for your records, If you have any further questions regarding this matter, please call this office at (574) 235- 9251. Sincerely, Linda M. Martin, Clerk Enclosure c: Alkeyna Aldridge, Community Investment Jennifer Hockenhull, Administration and Finance Elizabeth Leonard, Community Investment GARY A, GILOT SUZANNA M. FRITZBEW EiJZABE'H-j A. MARADIK .TAMES A, MUELLER THERESE J. DoRAU AGREEMENT FOR DONATION OF FUNDS TO HOMEOWNERSHIP FINANCING PROGRAM THIS AGREEMENT for Donation of Funds to Homeownership Financing Program (this "Agreement") is made effective this 12`1' day of .Tune 2018 by and between the City of South Bend, Indiana, by and through its Board of Public Works, for and on behalf of the Department of Community Investment (the "City") and Hurry Home, Inc. ("Hurry Home"). RECITALS WHEREAS, Hurry Home provides alternative financing for homes for which banks cannot profitably originate mortgages, enabling renters to become homeowners and in turn helping to stabilize neighborhoods and families; and WHEREAS, the City supports programs for home buyers, including those providing new home buyer counseling and funds for down payment and closing cost assistance; and WHEREAS, the City desires to work with Hurry Home and Hurry Home desires to work with the City to provide prospective new home buyers with certain resources. AGREEMENT NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 1. DEFINITIONS. In addition to any terms otherwise defined herein, the following capitalized terms are used throughout this Agreement and shall have the meanings set forth below: a. Total Donation Amount. The Total Donation Amount is Eighty Thousand Dollars ($80,000.00). b. Qualified Purchaser. A home buyer shall be a Qualified Purchaser if he or she: i. Has a household income of no more than eighty percent (80%) of the area median income adjusted for household size; ii. Is a first-time home buyer, unless he or she: 1. Owns a mobile home, 2. Has been displaced from his or her current home due to legal issues, 3. Has relocated to the area, 4. Has not owned a home in the preceding three (3) years, or 5. Has a foreclosure history with extenuating circumstances; iii. Has at least Two Thousand Dollars ($2,000.00) in readily available cash; and iv. Has evidenced that he or she has completed the Pre -Purchase Requirements. c. Qualified Home. Any home purchased with any portion of the Total Donation Amount shall be located within the city limits of the City of South Bend, Indiana. Additionally, a Qualified Home will be an owner -occupied single- family unit, including but not limited to single-family homes, townhouses, and condominiums, with a purchase price not exceeding One Hundred Ten Thousand Dollars ($110,000,00). All Qualified Homes must be inspected by a qualified home inspector and must be in a condition that does not require ongoing costly maintenance or repairs. d. Pre -Purchase Requirements. Qualified Purchasers must complete an in -person one-to-one credit and pre -purchase counseling from any counseling agency approved by the United States Department of Housing and Urban Development, no more than six (b) months prior to the purchase of a Qualified Home. e. Post -Purchase Requirements, Qualified Purchasers must make twelve (12) consecutive on -time payments and attend six -post purchase homeownership training sessions. Additionally, Qualified Purchasers must endeavor to refinance loans with third party lenders within three (3) years of the closing date of the purchase of a Qualified Home. 2. DONATION. The City shall donate the Total Donation Amount to Hurry Home, which shall be used only for the purpose of assisting Qualified Purchasers acquire Qualified Homes as set forth in this Agreement. 3. DEFAULT COVERAGE FUND. Hurry Home shall set aside in a separate bank account Forty Thousand Dollars ($40,000.00) of the Total Donation Amount to repay actual funds that may be lost by investors in Hurry Home due to a Qualified Purchaser's default on a loan ("Default Coverage Fund"). The parties acknowledge and agree that the purpose of the Default Coverage Fund is to encourage third party investors to provide funds to Hurry Home in furtherance of its mission. A loan shall be considered in default after two (2) delinquent payments, as more specifically set forth in the Appendix attached hereto and incorporated herein by reference. 4. BUYER SUPPORT FUND. The remaining Forty Thousand Dollars ($40,000.00) shall be used to support Qualified Purchasers with regard to the following programs administered by Hurry Horne: a. Down Payment Assistance. Twenty -Five Thousand Dollars ($25,000.00) shall be used for a grant program providing Qualified Purchasers with up to Five Percent (5%) of their total loan amount. Qualified Purchasers must endeavor to complete the Post -Purchase Requirements. b. Closing Cost Assistance. Five Thousand Dollars ($5,000.00) shall be used for payment of up to one-half (1/2) of a Qualified Purchaser's closing costs, including, but not limited to, sums for an appraisal, home inspection, title search, title insurance, and processing charges. c. Home Owner's Insurance Subsidy. Seven Thousand Dollars ($7,000.00) shall be used to pay a Qualified Purchaser's home owner's insurance on a Qualified Home for the first year. d. Credit Check Repayment. Three Thousand Dollars ($3,000.00) shall be used to refund the out-of-pocket cost to a Qualified Purchaser for any credit or background check performed by Hurry Home or a participating investor if such Qualified Purchaser does not purchase a Qualifying Home within three months of entering the Hurry Home program. S. RECORDS, REPORTING, AND AUDIT RIGHTS, Hurry Home shall maintain records related to all transactions involving the Total Donation Amount for as long as such funds remain available for use. From time to time, the City, through its City Controller or her designee, may request reports from Hurry Home detailing the expenditures under the programs set forth herein, as well as the repayment histories of any Qualified Purchaser receiving funds derived from the Total Donation Amount. Additionally, the City reserves the right to audit the financial records of Hurry Home, and Hurry Home agrees to cooperate with the City during such audit, provided that any audit initiated by the City shall occur only during normal business hours. 6. DEFAULT AND CLAW BACK. In the event that any of the Total Donation Amount is not used as set forth in this Agreement, or to the extent that any of the Total Donation Amount is found not to have been used for the benefit of Qualified Purchasers to acquire Qualified Homes, then Hurry Home shall be in default of this Agreement, and the City shall have the right to demand in writing repayment of that portion of the Total Donation Amount deemed to have been distributed in violation of this Agreement. Hurry Home shall immediately repay such funds to the City upon such written demand. 7. INTELLECTUAL PROPERTY. The City grants Hurry Home a non-exclusive, non- transferable license to use the City's logo on Hurry Home's website and marketing materials indicating the City's support of Hurry Home's mission, provided that, the City shall have the right to review any such use of its logo prior thereto. The City shall have the right to revoke this license at any time and for any reason upon written notice. At such time, Hurry Home shall immediately cease using the City's logo and shall destroy any marketing materials containing such logo. 8. LEAD -BASED PAINT. Notwithstanding any other provision of this Agreement, Hurry Home shall comply with the regulations of 24 CFR 570.608 and all applicable rules and orders issued thereunder which requires notification of lead -based paint hazard to purchasers as prescribed. 9. EQUAL OPPORTUNITY NONDISCRIMINATION AND COMPLIANCE. Hurry Hoare shall comply with all applicable laws and regulations in its hiring and employment practices and policies for any activity covered by this Agreement. Additionally, Hurry Home shall comply with all federal, state, and municipal laws, regulations, and standards applicable to its activities pursuant to this Agreement including, but not limited to, the requirements imposed by Ind. Code 22-9-1-10 (non- discrimination), and the provisions of Ind. Code 22-54.7 (requiring E-Verify for new employees and prohibiting employment of unauthorized aliens). Each of the foregoing provisions is incorporated herein as if set forth in full, and the Provider certifies that she is in compliance with each such provision and shall remain in compliance through the term of this Agreement. 10. IDENTITY THEFT PREVENTION PROGRAM. When applicable, Hurry Home shall comply with the provisions of the Fair and Accurate Credit Transactions Act, 15 USC 1681, the regulations promulgated thereunder (16 CRF 681) and all related local requirements (including the South Bend Board of Public Works Resolution No. 77- 2008) which may be adopted from time to time by the City. The Agency shall include in all applicable contracts, the provisions of federal, state, and local law imposing an obligation to detect, prevent, and mitigate identity theft in connection with certain credit transactions. 11. INDEMNIFICATION, Hurry Home agrees to indemnify, defend, and hold the City, its officers, employees, and agents harmless with regard to any and all claims of any nature which may arise from Hurry Home's use of the Total Donation Amount. 12. WAIVER. No failure or delay on the part of either party in exercising any right under this Agreement will operate as a waiver of, or impair, any such right. No single or partial exercise of any such right will preclude any other or fiuther exercise thereof or the exercise of any other right. No waiver of any such right will have effect unless given in a written document signed by the party waiving such right. No waiver of any right will be deemed a waiver of any other right hereunder. 13. DRUG -FREE WORKPLACE. Hurry Home agrees to make a good faith effort to provide and maintain a drug -free workplace. Hurry Home will give written notice to the City within ten (10) days after receiving actual notice that Hurry Home or an employee of Hurry Home within the State of Indiana has been convicted of a criminal drug violation occurring in the workplace. 14. ENTIRE AGREEMENT AMENDMENTS APPLICABLE LAW AND JURISDICTION. This Agreement sets forth the entire agreement and understanding between the parties as to the subject matter hereof, and merges and supersedes all prior discussions, agreements, and understandings of any and every nature between them. This Agreement may be amended only by separate writing, signed by authorized representatives of both Hurry Home and the City. This Agreement will be construed and interpreted according to the laws of the State of Indiana and any actions arising hereunder shall be tried in the courts of St. Joseph County, Indiana. IN WITNESS WHEREOF, the Parties hereto have caused this Agreement for Professional Services to be effective as of the Effective Date stated above. CITY: CITY OF SOUTH BEND, INDIANA BOARD OF PUBLIC WORKS k�� 014k Gary A. Gilot, President Suzanna M. Fritzberg, Member Therese Dorau, Member R ATTEST — L Linda M. Martin, Cl rk HURRY HOME, INC. Signature Printed Name Title odt l. Elizabeth Maradik, Member James Mueller, Member APPENDIX BOARD OF PUBLIC WORKS AGENDA ITEM REVIEW REQUEST FORM Date 06-08-118 Name Genevieve Crum Department —Community investment BP W Date 06-12-18 Phone Extension 5896 sm Controller Purchasing N Agreement F] Professional Services ❑ Bid Opening ❑ Quote Opening F-1 Change Order No. R Ease/Encroach. F-1 Other. Z Attorney Name Kennedy z Controller review is required for all Contracts $5,000.00 or more and greater than one year in length per the City Purchasing Policy N H Contract LJ Proposal Ll Addendum F-1 Resolution F-1 Bid Award ❑ Req. to Advertise El Title Sheet 0 Quote Award F-1 C/O & PCA No. ❑ PCA n Traffic Control Company or Vendor Name Hurry Home, Inc. New Vendor M Yes 0 No Ellf Yes, Approved by Purchasing MBENVBE Contractor H MBE M WBE MBENVBE Contractor Requested Z No F-1 Yes Name ofCompany _ Project Name Homeownership Financina Proararn Project Number Funding Source Account No. Amount Terms of Contract Am Funding: EDIT (408.1001.460,,39.30) $80,000 6/12/18 — 6/12,/19 Purpose/Description Homeownership pilot program offering alternative financing to small dollar mortgages r_1 Required Contractor's Certification, Form Attached (Non - Collusion, Non -Discrimination, Non -Debarment, E-Verifv. Iran, etc.) Amount of F-1 Increase $ F-1 Decrease $ Previous Amount $ Current Percent of Change: % New Amount $ Total Percent of Change: % Dispersal After Approval Copy Original M F-1 Alkeyna Aldridge F-1 James Mueller ❑ Jen Hockehull