Upon acceptance, the following additional requirements shall apply to any applicant who is a qualifying grantee.
(A) Contractual requirements. The qualifying grantee shall enter into one or more contracts with the city, which contract(s) shall be consistent with the Act and subject to the review of the MFA, in its discretion, and which contract(s) shall include remedies and default provisions in the event of unsatisfactory performance by the qualifying grantee.
(B) Security provisions; collateral requirements. In accordance with the Act, the Rules and this chapter, the city shall require the qualifying grantee to execute documents which will provide adequate security against the loss of public funds or property in the event the qualifying grantee abandons or fails to complete the affordable housing project, and which shall further provide, as may be permitted by law, for the recovery of any attorney fees and costs which the city and/or the MFA may incur in enforcing the provisions of this chapter, the Rules, the Act and/or any agreement entered into by the city and the qualifying grantee, and which documents may include, but are not limited to, the following: notes, mortgages, loan agreements, land use restriction agreements, restrictive covenant agreements and/or any other agreements which the city may require in order to allow for any funds which the qualifying grantee may receive under a housing assistance grant or affordable housing funds to be adequately secured and to allow the city and the MFA to ensure that such funds shall be used by the qualifying grantee in accordance with the Act, the Rules and this chapter.
(C) Performance schedule and criteria. The qualifying grantee shall be required to abide by a reasonable performance schedule and performance criteria that the city, in its discretion, may establish.
(D) Examination of books and records. The qualifying grantee shall submit, and the city shall cause to be made, such examinations of the books and records of each qualifying grantee as the city and/or the MFA deems necessary or appropriate to determine the qualifying grantee’s compliance with the terms of the Act, the Rules, this chapter and any contracts between the qualifying grantee and the city. The city and/or the MFA may require each qualifying grantee to pay the costs of any such examination.
(E) Infrastructure cost reimbursement contracts.
(1) Cost reimbursements. Payment to a qualifying grantee under cost-reimbursable contract provisions shall be made upon the city’s receipt from the qualifying grantee of certified and documented invoices for actual expenditures allowable under the terms of any agreement between the qualifying grantee and the city.
(2) Cost reimbursements for units of service. Payment under any unit cost contract provisions shall be made upon the city’s receipt from the qualifying grantee of a certified and documented invoice showing the number of units of service provided during the billing period.
(3) Rate at which costs incurred. Under unit cost or cost-reimbursable contracts, it is anticipated that costs will be incurred by the qualifying grantee at an approximate level rate during the term of any agreement between the qualifying grantee and the city. If the city determines that the qualifying grantee is underspending or overspending, then the city may reduce the budget and/or exercise such other budgetary fiscal controls it deems appropriate.
(4) Invoices. Qualifying grantees shall not submit invoices more than once a month unless written approval is obtained in advance from the city. Failure to submit invoices within 20 calendar days of the close of the month for which payment is sought may result in the non-availability of funds for reimbursement.
(5) No dual application of costs. The qualifying grantee shall certify that any direct or indirect costs claimed by the qualifying grantee will not be allocable to or included as a cost of any other program, project, contract or activity operated by the qualifying grantee and which has not been approved by the city in advance, in writing.
(6) Prohibition of substitution of funds. Any affordable housing funds or other amounts received by the qualifying grantee may not be used by the qualifying grantee to replace other amounts made available or designated by the state or local governments through appropriations for use for the purposes of the Act.
(7) Cost allocation. The qualifying grantee shall clearly identify and distribute all costs incurred pertaining to the affordable housing project by a methodology and cost allocation plan at times and in a manner prescribed by, or acceptable to, the city.
(8) Additional information. Qualifying grantees shall provide the city with any and all information which the city may reasonably require in order for it to confirm that the qualifying grantees continue to satisfy the requirements of the Act, the Rules and this chapter throughout the term of any contract and/or any affordability period or otherwise as may be required by the city or the MFA in its discretion. At a minimum, on an annual basis, the city shall certify to the MFA, in writing, that to the best of its knowledge, the qualifying grantee is in compliance with applicable provisions of the Act, the Rules and this chapter.
(Ord. 2023-002, passed 8-16-2023)