R2010-86 AUTHORIZING NEIGHBORHOOD HOUSING DEVELOPMENT CORPORATION SUPPLEMENTAL AGREEMENT

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Ay4 �i i ^ HOME PROGRAM FY 2009 COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO) SUPPLEMENTAL AGREEMENT THIS SUPPLEMENTAL AGREEMENT, entered into on the 19th day of April, 2010 by and between the City of Decatur, Illinois, hereinafter called the "City", and the Neighborhood Housinq Development Corporation, organized under the laws of the State of Illinois, hereinafter called "NHDC". WHEREAS, the City had entered into an agreement with the U.S. Department of Housing and Urban Development, hereinafter called "HUD", for the purpose of conducting a HOME Program; and whereas the City has received a special allocation from HUD for housing to be developed or owned by a Community Housing Development Organization, hereinafter called "CHDO", for the purpose of providing single-family homeownership opportunities for low to moderate income households; and whereas NHDC was identified as a CHDO, subject to the terms and conditions stated below; and whereas NHDC submitted a formal request dated March 3, 2010 to change the use of a previously funded projects to conduct activities eligible under the HOME program guidelines and requested an extension carry out the HOME activities under the stated proposal. A. NHDC will not receive additional CHDO set-aside funds from the City under the HOME Program to implement the proposed activity change from a Homebuyer Program to a Lease to Purchase Program. B. NHDC shall use the properties (1844 E. Decatur Street and 1315 E. Clay) as outlined in the proposal dated March 3, 2010 specifically, for the Lease to Purchase Program. C. NHDC shall not enter into any agreement with potential lessees/homebuyers under the terms of this agreement until a written Notice to Proceed is issued by the Neighborhood Services Department, of the City of Decatur. The Notice to Proceed shall be issued following completion of all conditions of this Agreement which include (1) submission of recent Financial Report/Audits, (2) documentation of payment for all Real Estate Taxes, lessee/homebuyer documentation, and other required HUD documentation. D. Duration of Agreement. This agreement shall be in effect the lesser of thirty months or until such time as the housing unit specified is leased and/or sold to an income-eligible households and appropriate encumbrances/liens are in place to ensure the housing unit will remain affordable throughout the maximum twenty year affordability period. NHDC will be required to provide recorded instruments which identify the HOME and City of Decatur's interest in the property. This Agreement provides extension and revision to the original agreements as granted by the City Council. All leases, deeds and/or mortgages shall reflect the applicable affordability period and name the city as an interested party to ensure HUD affordability requirements are satisfied. NHDC will be required to provide a copy of the documents (recorded deed/mortgages) which will reflect the affordability period. E. Monitoring. The City shall continue to monitor NHDC's compliance with the terms stated in the original Agreements, Supplemental Agreements, and throughout the affordability period. Specifically, NHDC shall provide evidence on an annual basis that each assisted lessee/purchaser continues to occupy his or her property as their principal residence as determined annually by the U.S. Department of Housing and Urban Development, and with all applicable property standards.