Home Investment Partnerships Program

Agency: Town of Gilbert
State: Arizona
Type of Government: State & Local
NAICS Category:
  • 541611 - Administrative Management and General Management Consulting Services
Posted Date: Feb 18, 2019
Due Date: Jun 30, 2019
Solicitation No: 319001038
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Home Investment Partnerships Program
  • RFP Number: 319001038
  • Start Date: 02/18/2019
  • Close Date: 06/30/2019 12:00 AM

Post Date Item Document Format
02/18/2019 Developer Agreement

Attachment Preview

for the
Home Investment Partnerships Program
(HOME) Contract No. ________________
THIS DEVELOPER A G R E E M E N T IS MADE this ____ day of ______________,
2019 (this “Agreement”), by and between the Town of Gilbert, hereinafter referred to as
__________________________, hereinafter referred to as “DEVELOPER”, and which is
located at: _____________________________. GILBERT and DEVELOPER are sometimes
referred to in this Agreement collectively as the “Parties”, or individually as a “Party”.
This A greement shall remain in effect until J u n e 3 0 , 2 0 2 0 , unless sooner
terminated, extended or otherwise amended in accordance with the terms of this Agreement.
GILBERT may, in its sole discretion elect to extend the term of this Agreement for up to four
(4) consecutive one-year periods following the foregoing date, contingent upon the availability
of HOME Funds.
WHEREAS, GILBERT is the recipient of HOME Investment Partnerships Program
Funds (“HOME Funds”) awarded by the U.S. Department of Housing and Urban Development
WHEREAS, in 2019, GILBERT published a Request for Qualifications (“RFQ”) to
implement a permanent affordable rental home program utilizing HOME Funds to increase
the affordable housing stock within Gilbert. DEVELOPER was named the qualified bidder
of the RFQ process to implement GILBERT’s permanent affordable rental home program.
WHEREAS, DEVELOPER has submitted a proposal for use of HOME Funds for an
eligible project under HOME regulations.
WHEREAS, DEVELOPER is being awarded this Agreement to provide permanent
affordable rental housing units in Gilbert, Arizona using HOME Funds awarded to GILBERT
by HUD, as authorized under Title II of the Cranston-Gonzalez National Affordable Housing
Act of 1990 that would include the acquisition, rehabilitation and rental of up to one to two
(1-2) single family dwelling units to qualified low to moderate income renters in Gilbert. The
$_________ of HOME Funds provided to DEVELOPER under this agreement include
$_________ of FY 20____-20___ HOME Funds and $_________ of FY 20_____-20_____
HOME Funds allocated to GILBERT through its participation in the Maricopa County HOME
NOW, THEREFORE in consideration of the mutual covenants and obligations herein
contained, including the Attachments, and subject to the terms and conditions hereinafter
stated, the parties hereto understand and agree as follows:
1. Title and paragraph headings are for convenient reference and are not a part of this
2. In the event of conflict between the terms of this Agreement and any terms or conditions
contained in any attached documents, the terms in this Agreement shall rule.
3. No waiver or breach of any provision of this Agreement shall constitute a waiver of a
subsequent breach of the same or any other provision hereof, and no waiver shall be effective
unless made in writing.
4. GILBERT’s failure to act with respect to a breach by the DEVELOPER does not waive its
right to act with respect to subsequent or similar breaches. The failure of GILBERT to
exercise or enforce any right or provision shall not constitute a waiver of such right or
5. The parties hereto agree that this Agreement shall be construed and enforced according to
the laws of the State of Arizona.
6. Should any provisions, paragraphs, sentences, words or phrases contained in this Agreement
be determined by a court of competent jurisdiction to be invalid, illegal or otherwise
unenforceable under the laws of the State of Arizona or GILBERT, such provisions,
paragraphs, sentences, words or phrases shall be deemed modified to the extent necessary
in order to conform with such laws, or if not modifiable to conform with such laws, then
same shall be deemed severable, and in either event, the remaining terms and provisions of
this Agreement shall remain unmodified and in full force and effect.
7. The obligations undertaken by DEVELOPER pursuant to this Agreement shall not be
delegated or assigned to any other person or agency unless GILBERT shall first consent to
the performance or assignment of such service or any part thereof by another person or
8. The Agreement shall be binding upon the parties hereto, their heirs, executors, legal
representative, successors and assigns.
As used throughout this Agreement, the following terms shall have the following meanings:
1. “Agreement” means this Agreement entered into between GILBERT and the
DEVELOPER, including Exhibits listed therein. It includes all formal changes to any of
those documents by addendum, change order, or other modification.
2. “Contract Administrator” means the staff person administering this Agreement on behalf
3. “Developer” means the for-profit or private nonprofit individual or entity identified
in the preamble of this Agreement that GILBERT provides HOME Funds to for the purpose
of (1) acquiring homes and residential properties to rehabilitate for use of permanent
affordable rentals and (2) rehabilitating and renting housing for use of permanent affordable
rental purposes.
4. “Developer Fee” means the amount of money GILBERT agrees to pay and the
DEVELOPER agrees to accept as payment in full for project completion.
5. “Eligible Costs” means costs for the activities specified in Attachment A for which HOME
Funds are budgeted, provided that such costs are incurred in connection with the activity
which is eligible under the HOME Program and conform to all HOME Program
6. “Environmental Requirements” means the requirements described in 24 CFR Part 58.
7. “Eligible Renter” means an individual who meets income and other requirements as defined
in 24 CFR Part 92.
8. “HUD” means the U.S. Department of Housing and Urban Development.
9. “HOME Program” means the HOME Investment Partnership Program as defined in 24
CFR Part 92 as it currently exists and as it may be modified in the future.
10. “HOME Funds” means funds made available under 24 CFR Part 92 through allocations and
reallocations, plus all repayments and interest or other return on investment of these funds.
11. “HOME-assisted Unit” means those units designated as HOME-assisted pursuant to 24
CFR Part 92.
12. “Low and Moderate Income” means a household whose annual income does not exceed 80
percent of the median income for the area, as determined by HUD.
13. “Very Low Income” means a household whose annual household income does not exceed
50 percent of the median income for the area, as determined by HUD.
14. “Period of Affordability” means the number of years during which the property is subject
to HOME requirements as specified herein.
15. “Program Income” means the income received by the DEVELOPER or GILBERT directly
generated from the use of HOME Funds or matching contributions, including proceeds from
the sale of real property acquired, rehabilitated or constructed with HOME Funds.
16. “Project” means the entire project, whether construction or rehabilitation of HOME-
assisted units, which is provided for in whole or in part under this Agreement.
17. “Project Completion” means that all necessary title transfer requirements and construction
work have been performed; the Project complies with the HOME Program requirements; the
final drawdown has been disbursed; and all project completion information has been
delivered to GILBERT, as provided for under this Agreement.
18. “SOQ” means the DEVELOPER’s response to GILBERT’s HOME Request for
Qualifications or such other submittals, and any amendments thereto.
19. “Records” means all pertinent books, documents, papers, accounts, reports, files,
applications, sales contracts, waiting lists, income examinations, and all other records
relating to the Project.
20. “Work” means the services and activities enumerated in Exhibit A of this Agreement.
The purpose of this Agreement is to provide HOME funding from GILBERT to the
DEVELOPER for the acquisition and rehabilitation of one to two single-family housing units
for rental units to eligible low-income households. All work tasks performed under this
contract shall be performed in essentially the same manner proposed in the developer’s SOQ
as received by GILBERT on ___________, 20___. The developer’s SOQ is considered to be
a part of this agreement and is hereby incorporated by reference.
The DEVELOPER shall use HOME Funds under this agreement for the purpose of
acquisition and rehabilitation of single-family housing units for the use of permanent
affordable rental homes. Development costs include the actual cost of acquisition and
rehabilitation, demolition of existing structures upon prior written approval of GILBERT, on-
site improvements in keeping with the improvements of standard surrounding properties,
carrying costs, and related soft costs including but not limited to financing fees, affirmative
and fair marketing, staff and overhead costs directly related to carrying out the project
(project-specific costs), and developer fees.
1. Eligible Properties. The DEVELOPER shall use HOME Funds only to acquire properties
approved by GILBERT. Eligible properties:
a) Must be located in the HOME Target Area identified in the DEVELOPER’S proposal
based on the housing market analysis provided by the DEVELOPER.
b) Must receive environmental clearance from GILBERT prior to acquisition. Except that
the developer may execute a purchase option subject to environmental clearance.
c) Must have only one dwelling unit on site; acquisition of two-family or other mixed owner-
rental properties require GILBERT advance approval in writing and compliance
with HOME rental restrictions.
d) Must be unoccupied or meet the voluntary sale requirements of the Uniform Relocation
2. Property Standards - The DEVELOPER will carry out all HOME-assisted activities in
accordance with applicable laws, codes, and other requirements relating to housing safety,
quality, and habitability, in order to sell, rent, or redevelop such homes and properties,
including compliance with 24 CFR 92.251 as relates to Property Standards and Housing
Quality Standards (HQS), Accessibility Standards under 24 CFR 92.251(a) (3) as applicable.
1. The DEVELOPER agrees to expend 100% of HOME Funds under this agreement no later
than ___________, 20___ and according to the following schedule:
50% of HOME Funds expended and drawn by ___________, 20___
75% of HOME Funds expended and drawn by ___________, 20___
2. The DEVELOPER agrees to identify all properties to be assisted under this agreement no
later than ___________, 20___. The following obligation standards shall be applied to units
acquired under this Agreement:
a) Funds for property acquisition are obligated by the DEVELOPER entering into a valid
purchase and sales agreement with the seller of the property in compliance with all HOME
b) Funds for rehabilitation are obligated by completing a detailed set of plans and specifications
(work write-up) and completing a detailed construction/rehabilitation cost estimate based

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