PROGRAM. August 28, 20144

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1 NEIGHBORHOOD REVITALIZATION LOAN PROGRAM NOTICE OF FUNDING AVAILABILITY August 28, Pre-Proposal Conference: September 12, 2014 Responses Due: October 1, 2014

2 NEIGHBORHOOD REVITALIZATION LOAN PROGRAM NOTICE OF FUNDING AVAILABILITY CONTENTS I. Overview. A. Announcement. B. Available Funds. C. Eligible Applicants. D. Application. E. Dates. II. Funding Opportunity Description. A. Purpose and Goals. B. Loan Program Description. C. Use of County Grant. III. Eligibility and Selection Criteria. A. Minimum Eligibility. B. Application Format. C. Selection Criteria. IV. Application Process. A. Information Regarding Application. B. Questions Regarding the NOFA C. Pre-Application Conference D. Submission Information. E. Award Administration Information. F. Neighborhood Revitalization Loan Pool Grant Agreement. I. OVERVIEW. A. Announcement. The Howard County Department of Housing and Community Development (the Department of Housing ) announces that it is soliciting competitive applications from eligible non-profit organizations to receive grant funds to be used to create a mortgage loan program that would provide loans to homebuyers to acquire and improve aging homes in Howard County, Maryland. The purpose of the program is to encourage new investment in and revitalization of Howard County s older communities. 1

3 B. Available Funds. Howard County has appropriated $2,000,000 in its FY2015 budget to be used as a loan loss reserve for this proposed mortgage program. It is anticipated that this level of funding will be sufficient to induce a private lender or lenders to contribute loan funds of as much as $20 million to the loan program. C. Eligible Applicants. As more particularly outlined herein, applications will be accepted from non-profit organizations in good standing in Maryland with the demonstrated capacity to oversee and administer the proposed loan program. See Section III. Eligibility and Selection Criteria. D. Applications. Applications must be submitted to the County in a form outlined in this NOFA. See Sections III. Eligibility and Selection Criteria and IV. Application Process. Please be advised that not providing information in accordance with the instructions and requirements in this NOFA may negatively impact the County s ability to determine if your application meets the selection criteria. E. Dates. Applications must be actually received by the County, see Section IV. B. Submission Information, by 4:00 p.m. EPT, October 1, Notification of the successful applicant should be made by mid-october. II. FUNDING OPPORTUNITY DESCRIPTION. A. Purpose and Goals. Howard County wishes to partner with a non-profit organization to devise a mortgage loan program for prospective homebuyers that will help to revitalize the County s older residential neighborhoods. While much of the housing stock in Howard County is relatively new and in good, marketable condition, many neighborhoods were originally built in the 1960s and 1970s. Some single family homes and townhomes built in that era are showing signs of age and deterioration. Some homeowners do not have the resources to complete major renovations needed to improve and update homes. Potential homebuyers often bypass these older homes, despite their favorable location, because they do not have the resources or capacity to make the improvements they desire. Without new investment in these older homes, property values in these neighborhoods may decline and adversely impact the quality of life in the community. Howard County seeks a non-profit partner to develop a Neighborhood Revitalization Loan Program to address the needs of aging homes in Howard County. The program s mission is to increase home values in neighborhoods, market communities, create high standards for property improvements, and forge strong connections among neighbors. B. Loan Program Description. Howard County envisions that the Neighborhood Revitalization Loan Program would contain components and requirements outlined in this NOFA and in Exhibit 1, Proposed Parameters for First Mortgage Loan for Rehab and Purchase, attached hereto. However, the Applicant may propose a different structure or terms and conditions if it would better achieve the purposes and goals of this NOFA: 2

4 1. The Loan Pool. Funding for the loan program will come from a loan pool comprised of one or several mortgage lenders which will make loans at favorable terms, including no private mortgage insurance, and at or below market interest rates. The total amount of the loan pool is expected to be approximately $20,000,000. One lender will act as originator and servicer for all loans through this loan pool. The non-profit will solicit a qualified lender, or lenders, to participate in the pool. 2. Loan Loss Reserve. In order to induce a lender or lenders to participate in the loan pool, Howard County will provide a loan loss reserve fund in the amount of 10% of the pool, or $2,000,000. This fund would be available to pay any actual losses after all collection and foreclosure efforts are exhausted pursuant to the grant agreement and other related agreements. 3. Pool Administration. The pool will be administered by a nonprofit entity that would pre-screen applicants, assist borrowers, oversee the renovation process, and act as an intermediary between the lender and the borrower. 4. Eligible Uses. Loans from the pool would be used to make first-mortgage loans to purchase and rehabilitate existing residential properties. A property must be: a. A single family attached or detached home; b. Built before 1980; c. Have a current assessed value below $325,000; and d. Either have experienced a decline in assessed value over its previous 3-year assessment or the current list price is less than the current assessment. 5. Eligible Borrowers. Potential homebuyers can apply to the program to finance the purchase price and renovations to an eligible home that they want to purchase. Borrowers must occupy the property as their primary residence. There is no maximum income limit for participants in this program. 6. Maximum Loan Amounts. Borrowers can borrow as much as 110% of the afterrehabilitation appraised value of the property after contributing 3% of the purchase price from their own funds. Loans to borrowers will be limited to a maximum loan amount of $400,000. Housing and debt ratios must meet the lender s guidelines. 7. Loan Terms. A loan will constitute a first mortgage on the property payable in fixed monthly payments over a 30-year term. Interest rate will be no more than the prevailing FHA fixed mortgage rate. No private mortgage insurance will be required. 8. Other Requirements. At least 3% of the borrowers own funds must be contributed. Borrowers must have a minimum 620 credit score. All new home purchasers must attend a homebuyer education workshop, to be offered by the nonprofit organization or its designee. 9. Renovation Requirements. Borrowers must agree to make repairs/improvements to the purchased property in an amount equal to at least 10% of the acquisition price. 3

5 Furthermore, at least $5,000 of that amount must be spent on exterior renovations. Borrowers will hire a licensed, insured general contractor to undertake the improvements. The rehabilitation portion of the loan funds will be disbursed during renovations upon satisfactory inspection of the work completed. C. Use of Grant Funds. Howard County will grant $2,000,000 to the selected applicant to be used to establish a loan loss reserve for the loan program. It is anticipated that this level of funding will be sufficient to induce a lender or lenders to contribute up to $20,000,000 to the loan pool. It will be a condition of the grant that, among other things, (a) the loan loss reserve will be held by the selected applicant in an interestbearing account, and (b) the fund would be available to pay any actual losses after all collection and foreclosure efforts are exhausted pursuant to the grant agreement and related agreements. III. Eligibility and Selection Criteria. A. Minimum Eligibility. Nonprofits eligible to be an applicant under this NOFA are entities that are classified as such in accordance with section 501(c) of the Internal Revenue Code or have been designated as such by their state government and are in good standing with the State of Maryland. B. Application Format. Applicants must submit an application (the Application ) which includes the following: 1. Part I Applicant must submit a written narrative demonstrating their ability to meet the selection criteria outlined in this NOFA. Specifically, the applicant must review and provide a narrative response to the selection criteria in Section III. C Timeliness, Capacity to Lead the Program, and Plan. The applicant should describe its overall vision for the development, marketing and implementation of the program. 2. Part II Applicant may include any attachments which the applicant deems integral to show their ability to meet the selection criteria. Each attachment should be clearly marked. 3. Part III A copy of applicant s IRS determination letter to prove their 501(c) status or the letter from their state government to prove their nonprofit status. C. Selection Criteria. Howard County will evaluate the extent to which the application demonstrates the applicant s ability to develop, implement and effectively lead the program. 1. Timeliness. Howard County will evaluate the applicant s ability to ensure that the program will be set up in a timely manner, which includes a schedule of anticipated tasks and activities necessary to develop, market and implement the program. 4

6 2. Capacity to Lead Program. Howard County will evaluate the applicant s ability to develop and lead a successful program based on the goals and conditions outlined in this NOFA. This will include: a. Evidence that applicant has experience in working with local groups (including but not limited to governmental agencies, local organizations and area community groups) which could be integral in the marketing and implementation of the program. b. Evidence that applicant has knowledge of the home buying process in the area and is able to pre-screen potential borrowers and assist borrowers throughout the loan process. c. Evidence that applicant is able to assist borrowers through homebuyer education workshop. d. Evidence that applicant is able to oversee and certify the renovation process. e. Evidence that applicant is willing to work with borrowers in an effort to avoid any defaults under the loan documents. 3. Plan. Howard County will evaluate the quality and feasibility of the applicant s proposed plan and evaluate the applicant s proposed strategy to achieve the goals set forth in this NOFA. This will include: a. Evidence regarding the applicant s proposed activities and plans to address the goals of the program. b. Information regarding the applicant s proposed fee schedule for implementation and administration of the program. c. Evidence regarding the applicant s plan to solicit, and ability to engage, one or more lenders to participate in the program. d. Evidence that the applicant has the resources and personnel to run the program. e. Evidence that the applicant will be able to develop metrics based on the objectives listed herein in order to measure the success of the program. f. Evidence that the applicant will be able to evaluate the program according to the outlined goals and report all relevant information to the County, in an approved format. 5

7 IV. Application Process. A. Information Regarding Application. This published NOFA is available on the Howard County website at Howard County staff will be available to provide an applicant with general guidance and technical assistance about this NOFA. However, Howard County staff is not permitted to help prepare an application. B. Questions Regarding the NOFA. Questions concerning this NOFA must be ed to Questions must be received no later than 5:00 p.m. EPT on September 12, Answers to questions and any addenda/amendments to the NOFA will be posted by September 16, 2014 on the Department of Housing s website at C. Pre-Application Conference. Each applicant must completely satisfy themselves as to the exact nature and conditions of the scope of services to be performed. Failure to do so will not relieve the selected applicant of their obligation to carry out the provisions of the grant agreement. A Pre-Application Conference will be held at 6751 Columbia Gateway Drive, Columbia, Maryland (room to be posted) at 10:00 a.m. EPT on September 12, 2014 to discuss objectives and answer questions relating to this NOFA. Attendance is not required but is strongly encouraged. Please an RSVP to spaul@howardcountymd.gov no later than 5:00 p.m. EPT on September 11, D. Submission Information. Applicants should submit their application via electronic mail to ngrace@howardcountymd.gov, with the original to follow by mail: to: Howard County Housing Department, Attn.: Nathan Grace, 6751 Columbia Gateway Drive, 3 rd Floor, Columbia, Maryland All applications must be received by Howard County (at the address referenced above) by October 1, 2014, 4:00 p.m. EPT. E. Award Administration Information. All applicants will be notified when decisions are finalized and notification should be made by late October. Until the applicant is officially notified, in writing, Howard County may not discuss the standing of any pending application. 6

8 F. Neighborhood Revitalization Loan Pool Grant Agreement. The selected applicant will receive a Neighborhood Revitalization Loan Pool Grant Agreement (the Grant Agreement ) which will constitute a contract between Howard County and the applicant to administer the Program pursuant to the terms of this NOFA and the Grant Agreement. A form Grant Agreement is attached hereto as Exhibit 2 for the Applicant s reference. However, Howard County may revise the final version of the Grant Agreement. 7

9 EXHIBIT 1 Proposed Parameters for First Mortgage Loan for Rehab and Purchase 1. Eligible borrowers will be those who are purchasing a single family attached or detached home, which was built before 1980, has a current assessed value below $325,000, and has either experienced a decline in assessed value over its previous three (3) year assessment or the current list price is less than the current assessment. The borrower must intend to occupy the property as their primary residence. Homes may include properties in foreclosure or being sold as a short sale. 2. Borrowers must be referred to the [Participating Bank] by [NonProfit], after the conclusion of the pre-screening process. The pre-screening process includes a full description of the program by [NonProfit] and a review of the borrower s finances. An application disclosure must be signed by all borrowers prior to loan commitment. 3. There is no maximum income limit for participants in this program. Borrowers must have a minimum 620 credit score. Borrower is responsible for the upfront cost of a credit report if one cannot be provided at no cost. A non-refundable screening fee in the amount of $ may be charged by [the NonProfit]). 4. Borrowers will ultimately be underwritten and approved by [Participating Bank] pursuant to the [Participating Bank s] standard guidelines. Similarly, income ratios must meet the [Participating Bank s] guidelines. 5. Maximum aggregate loan amount secured by the property shall not exceed 110% of afterrehabilitation loan to value, as established by appraisal, after borrower contributes 3% of the purchase price from their own funds. Gifts may be counted toward meeting this requirement; however, government or philanthropic grants and settlement expense loans will not count toward meeting the investment requirement. 6. Loans to borrowers will be limited to a maximum loan amount of $400,000. There will be no private mortgage insurance premium required. 7. Construction terms will be six (6) months, or longer, if mutually agreeable to [Participating Bank] and the borrower. Maximum permanent loan term is 30 years. 8. The program discounted permanent interest rate will be no more than the prevailing FHA fixed mortgage rate. Rate will be locked in when the home renovations and construction term are complete. 9. The loans will constitute a first mortgage on the property payable in fixed monthly payments. The borrower will make interest payments on funds advanced during the construction period.

10 Upon completion of construction and distribution of all loan proceeds, the loan must be refinanced and borrower s payments will consist of principal, interest and escrow payments. 10. (Borrower will pay no more than 2 points as a loan origination fee to [Participating Bank plus all customary loan closing costs. These fees and closing costs may be included in the loan if borrower has met the required cash contribution and loan amount does not exceed maximum program loan to value. 11. Borrowers must agree to make repairs/improvements equal to at least 10% of the acquisition price including exterior improvements. A minimum of $5,000 must be expended on exterior improvements. 12. For any loans available under the terms of this loan pool, borrowers will hire a licensed, insured general contractor. [Nonprofit] will be able to provide borrower with a list of licensed, insured general contractors. A construction contract between borrower/s and contractor, including scope of work and rehab costs, must be approved by [Nonprofit] prior to formal loan application with [Participating Bank] and the Contractor s Performance Agreement should specify that it is contingent upon borrower obtaining sufficient financing for the scope of work. Improvements will be completed in full by the general contractor unless a waiver is provided by [Nonprofit] upon borrowers request to self-manage a series of licensed subcontractors to complete specific tasks. Based upon the complexity of the rehab and the experience of the homeowner, [Nonprofit] and/or [Participating Bank] in its sole discretion may reject a homeowner s request to manage a series of subcontractors. 13. Upon loan settlement, the Bank will advance the lesser of 20% of the rehab cost or $8,000. The remainder of the rehab portion of the loan will be held for disbursement by the [Participating Bank] and funds will be released during construction upon satisfactory inspection of the work in place by [Nonprofit] and/or [Participating Bank s] approved construction inspector. Customary loan inspection fees will be charged. 14. If borrower fails to begin renovations or fails to complete renovations: If Borrower fails to begin renovations within the required rehab term, the loan must be refinanced to the permanent mortgage at the non-discounted prevailing 60 day Fannie Mae Rate as published in the Wall Street Journal and sold to the fund without rehab. The unused renovation funds may be frozen and the permanent loan amount will equal the amount disbursed. If Borrower begins renovations, but is unable to complete renovations within the required rehab term, the renovation term may be modified and extended. An extension fee may be charged. Upon completion, the loan must be refinanced to a permanent mortgage at 100 basis points below the 60 day Fannie Mae Rate as published in the Wall Street Journal. 15. The borrower agrees that any payment delinquency or default may be reported by the [Participating Bank] to the [Nonprofit] and Howard County and to any credit reporting agency. 2

11 Neighborhood Revitalization Loan Pool Program GRANT AGREEMENT THIS GRANT AGREEMENT (this "Agreement") is entered into as of the Effective Date, herein defined, by and between HOWARD COUNTY, MARYLAND, a body corporate and politic of the State of Maryland (the "County") and [NonProfit], a nonprofit corporation (the "Grantee"). RECITALS A. WHEREAS, pursuant to Section et seq. of the Howard County Code, the County is authorized to make grants to non-profit agencies that provide services to County residents. Such grants may be funded from County or designated private, State, regional, or federal funds. B. WHEREAS, the Grantee is a non-profit entity which responded to a Notice of Funding Availability (the NOFA ) issued by the County on August, 2014, regarding grant funds designated for a neighborhood revitalization loan program, as more fully explained herein and in the NOFA which is attached to this Agreement as Exhibit A and incorporated herein, to enable the Grantee to administer the program and provide certain services to Howard County residents. C. WHEREAS, pursuant to the Annual Budget and Appropriation Ordinance for Fiscal Year (FY15), the County wishes to provide, and the Grantee accepts the grant funds (the Grant Funds ) subject to the terms and conditions of this Agreement. D. WHEREAS, the Grantee and [Participating bank] (the Lender ) have entered into a Master Participation Agreement (the Master Participation Agreement ) outlining the terms of the program and the administration of such program, including the Grant Funds which will fund a loan loss reserve fund. NOW THEREFORE, in consideration of the premises and the mutual promises and covenants contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the County and the Grantee agree as follows: I. TERM OF AGREEMENT This Agreement shall become effective upon execution by the County (the "Effective Date"). Unless sooner terminated pursuant to Section XI of this Agreement, this Agreement shall remain in effect from the Effective Date through the final payment on the last loan issued through the program (as defined below). The County s remedies, including the reversion of Grant Funds (Section VI), records and retention requirements (Section VIII), repayment of Grant Funds (Section XIII), and inspection of Grantee records (Section IX), shall survive and continue to be enforceable after expiration or termination of this Agreement.

12 II. GRANT AMOUNT The County agrees to provide the Grantee with funds for Fiscal Year 2015 in the amount not to exceed two million dollars ($2,000,000) (the "Grant"). The Grant Funds must be held by Grantee in an interest-bearing account and the funds in such account, along with any interest earned thereon, shall be considered the Grant Funds. III. USE OF GRANT FUNDS A. Expenditures. The Grant Funds may only be expended to pay any actual losses after all collection and foreclosure efforts are exhausted, pursuant to the terms of this Agreement and any related agreements. B. Activities. The Grantee agrees to provide the Services (the "Services") outlined in the NOFA and described below: 1. The Grantee, in consultation with the Howard County Department of Housing and Community Development (the Department of Housing ), will create a mortgage loan program (the Program ) that will provide loans to homebuyers to acquire and improve aging homes in Howard County, Maryland and the Grant Funds will be utilized by the Grantee, subject to the terms and conditions of this Agreement, to set up a loan loss reserve (the Loan Loss Reserve ) for the Program in order to induce a private lender, or lenders, to contribute loan funds of as much as $20 million to the Program. 2. The Grantee agrees to administer the Program, pursuant to parameters approved by the Department of Housing, which will include among other things, pre-screening applicants, assisting borrowers throughout the loan approval and finalization process, working with lenders and other parties in interest, and overseeing the renovation process. The parameters of the Program are outlined herein and in the NOFA. C. Modifications. All requests for modification of Grantee s approved Services or expenditures must be submitted in writing (electronic correspondence is acceptable) to the Department of Housing and approved by the Department of Housing prior to initiating the change. V. DISBURSEMENTS A. General. The County shall disburse the Grant Funds in one payment to the Grantee upon notification from the Department of Housing that the Program s structure is operational and complies with all of the terms and conditions of the NOFA and this Agreement. 2

13 VI. B. Submission of Request for Grant Funds. Grantee shall submit one Request for Grant Funds (RGF), along with this signed Agreement and the relevant documentation to evidence that the Program is operational, to the Department of Housing at the address set forth herein. C. Disbursements to Grantee. All disbursements are to be made directly from the County to the Grantee. Disbursement of Grant Funds will be contingent upon the terms outlined herein. REVERSION OF GRANT FUNDS If the Grantee does not utilize all of the Grant Funds distributed by the County on or before the expiration or termination of this Agreement, or if this Agreement is terminated under Section XII of this Agreement, the Grantee shall return to the County the Grant Funds not already expended within ten (10) days of the date the Agreement expires or is terminated. The Grantee s obligations to the County shall not end until all Grant Funds are utilized pursuant to the Program parameters or have been returned to the County in accordance with the terms of this Agreement. VII. REPORTS The Grantee shall provide the County, through the Department of Housing, written program and budget reports in the format provided by the Department of Housing. Any report submitted which does not sufficiently address the questions asked of the Grantee will be deemed incomplete. Incomplete or insufficient reporting may result in the delay of disbursement of Grant Funds. The County may alter Grantee s reporting requirements for failure to comply with the Services and expenditures held within this agreement. A. Reporting Period. The Grantee shall provide reports of the Grantee's Services, Client Data as defined in Section VIII, and an overview of the reports provided to the Grantee by the Lender, as required by the Master Participation Agreement, to the County s Department of Housing. Reports shall be submitted on a quarterly basis, beginning on. B. Sufficient Data. All reports shall contain sufficient and accurate data describing the Services and expenditures of the Program to permit the County to determine whether the Grantee has met the requirements of this Agreement, including but not limited to evidence that the Grantee is taking all necessary steps to ensure that the [Lender] is in compliance with its obligations under the Program or, if [the Lender] is in material default on its obligations to the Program, that the Grantee is taking appropriate action against the [Lender]. Failure to submit any report under this within 30 days after its due date will be considered a material breach under this Agreement. C. Transparency. Grantee shall report to the County any circumstances which threaten the stability of the Grantee s operation of the Program or the continued 3

14 VIII. RECORDS ability of the Grantee to provide the Services of this agreement. Such notification shall be delivered immediately and does not follow the reporting schedule as described in Section A above. A. Records to be Maintained 1. General. The Grantee shall maintain sufficient records to enable the County monitors or their designees to determine whether the Grantee has met the requirements of the Program and this Agreement. At a minimum, such records shall include: a. a full description of each activity undertaken; b. invoices, paid bills, cancelled checks, etc. as satisfactory proof of expenses Grantee incurred for eligible Services; c. an accounting of any fees assessed by the Grantee, including but not limited to application fees, origination fees, and any fees assessed in an event of default; d. all reports, electronic or otherwise, provided to the Grantee from the Program s lender[s]; and e. written documentation that illustrates measurable outcomes of the Services. 2. Client Data. The Grantee shall maintain data demonstrating borrower eligibility for Services provided. Such data shall include, but not be limited to, borrower(s) name, address, credit score, housing and debt ratios set by the participating lender or lenders, and description of Services provided. Such information shall be made available to County monitors or their designees for review upon request. B. Records Retention 1. Individual Activities. The Grantee shall retain all records pertinent to Services undertaken and expenditures incurred under this Agreement for a period of three (3) years from the end of the grant period. 2. Property. Records regarding real property acquired under the Program shall be retained for three (3) years after final disposition of such property. C. Disclosure. The Grantee understands that client information collected under the Program funded by this Agreement is private and the use or disclosure of such information, when not directly connected with the administration of the County's or Grantee's responsibilities with respect to Services provided under this Agreement, unless otherwise required by law, is prohibited unless written consent is obtained from such person receiving Service. 4

15 IX. MONITORING For the purpose of evaluating and reviewing the Services, costs and operations under the Program, County monitors or their designees shall have access to and the right to interview any personnel essential to the Services described in this Agreement and to examine any books, accounts, and/or records of the Grantee related to this Program. The County shall also have access to and the right to examine any third-party reports and/or findings of any third-party audits or assessments related to the Grantee s Services and/or operations related to this Program. Pursuant to Section VII.B., all financial and Program records and files are to be retained for a period of not less than three (3) years from the end of the grant period. X. DISPUTES In the event that during the term of this Agreement, any dispute arises between the parties in connection with the performance of this Agreement, each party shall make a reasonable effort to resolve such dispute by mutual negotiation, adjustment and compromise. Under no circumstance, however, shall the authorized Budgetary Appropriation for the grant be exceeded. Any dispute concerning a question of fact arising under this Agreement, which is not disposed of by mutual consent, shall be decided by the County's Chief Administrative Officer. Pending final decision of the dispute hereunder, the Grantee shall proceed diligently with the Services set forth in this Agreement. XI. WAIVERS The failure of the parties to enforce at any time the provisions of this Agreement, or to exercise any option which may be provided herein, shall in no way be construed as a waiver of such provisions nor in any way affect the validity of this Agreement or any part thereof or the right of the parties to enforce thereafter each and every provision. XII. TERMINATION A. Mutual Termination. This Agreement may be terminated by the County with the consent of the Grantee, in which case the two parties shall agree upon the termination conditions, including the effective date and, in the case of a partial termination, the portion to be terminated. B. By the Grantee. This Agreement may be terminated by the Grantee upon at least thirty (30) days written notification to the County. The Grantee s written notice shall set forth reasons for the termination, the effective date of termination and, in the case of a partial termination, the portion to be terminated. If, in the case of a partial termination, the County determines that the remaining Grant 5

16 Funds will not accomplish the purposes for which the Grant was made, the County may terminate the Agreement in its entirety. C. By the County. This Agreement may be terminated by the County upon at least thirty (30) days written notice to the Grantee, for any of the following reasons: 1. Failure to Maintain Insurance. If the Grantee fails to maintain in effect the insurance policy required by Section XV of this Agreement, or fails to provide the County with evidence of the insurance. 2. Best Interest of the County. If the County determines that termination is in the best interest of the County. D. Termination for Default. A default shall consist of (i) any use of Grant Funds for any purpose other than authorized by this Agreement; or (ii) any material breach of any covenant, agreement, provision, representation or warranty of the Grantee which was made in this Agreement, including but not limited to (a) failure of the Grantee to maintain in good standing with the State of Maryland as a validly existing nonprofit entity, (b) failure of the Grantee to maintain the scheduled level of Services as set forth herein and/or (c) the Grantee s deviation from the approved Program without prior approval from the County. XIII. NOTICE OF DEFAULT, REPAYMENT AND REMEDIES A. Notice of Default and Cure. If a default occurs, the County shall provide written notice to the Grantee to cure the default, and the Grantee shall have thirty (30) days from the date the County's notice was postmarked to cure the default. The notice shall specify the acts or omissions relied on in case of termination. After the conclusion of the 30 day period, if the Grantee has not cured the default to the satisfaction of the County, the County may terminate this Agreement. B. Repayment. In the event of termination for any reason: (1) the Grantee s authority to request a disbursement shall cease and the Grantee shall have no right, title or interest in or to any of the Grant Funds not disbursed; (2) the County may immediately demand repayment of all or a portion of the Grant Funds which have been disbursed; and (3) the County s remedies of withholding disbursement and of obtaining repayment as described in paragraphs (1) and (2) above may be exercised contemporaneously with remedies pursuant to Section D below, and all of such rights shall survive any termination of this Agreement. 6

17 C. Other Remedies. If a default occurs, the County may at any time proceed to protect and enforce all rights available to the County, by suit in equity, action at law, or by any other appropriate proceedings, which rights and remedies shall survive the termination of this Agreement. XIV. GRANTEE S CERTIFICATIONS The Grantee certifies to the County that: A. The Grantee is a duly organized and validly existing nonprofit entity under law, is in good standing with the State of Maryland, and has all requisite power and authority to enter into this Agreement; and B. This Agreement has been duly authorized, executed and delivered by the Grantee in such manner and form as to comply with all applicable laws to make this Agreement the valid and legally binding act and agreement of the Grantee. XV. INSURANCE Grantee shall obtain and maintain general liability insurance as necessary to protect in any legal action, tort, contract, or other liability which may be raised against the Grantee or County. Grantee shall provide the County with evidence of insurance as the County may require, including evidence that the policies may not be terminated without thirty (30) days prior written notice to the County. XVI. EQUAL EMPLOYMENT OPPORTUNITY The Grantee certifies that it now complies and will continue to comply with all applicable federal, state and local laws and regulations pertaining to equal opportunity and equal employment practices, including the Americans with Disabilities Act of By executing this Agreement, the Grantee agrees and affirms that it accepts and will conform to the Howard County Affirmative Action Program and Equal Opportunity laws in that: Howard County expects that the Grantee will not discriminate against any employee, applicant for employment or program participant because of race, creed, color, national origin, sex, age, occupation, personal appearance, political opinion, sexual orientation, marital status, familial status or disability. Subject to the exceptions provided by federal law, Maryland law, and Section III(a) of the Howard County Code, the Grantee will take affirmative action to ensure that applicants, employees and participants in a program are treated equally without discrimination. XVII. LIABILITY LIMITATIONS By virtue of this Agreement, the parties expressly acknowledge that Grantee is not acting as an agent for the County but is acting in the capacity of an independent contractor. In addition, 7

18 Grantee agrees to indemnify and save the county harmless from and against any and all claims, actions, damages, liability and expense, including attorney's fees, in connection with loss of life, personal injury and/or damage to property arising from or out of the performance of its responsibility as stated in this Agreement, or occasioned in whole or in part by any act of omission of Grantee, its agents or employees. XVIII. CONFLICT OF INTEREST The Grantee certifies that the officer of the corporation who is executing this Agreement has read and understands the provisions of Section 901(a) of the Howard County Charter dealing with conflicts of interest and Section of the Howard County Code dealing with conflicts of interest. XIX. NOTICES Communication and details concerning this Agreement shall be directed to the following representatives: County: Department of Housing Contact: Thomas P. Carbo Director/Executive Director Howard County Housing Address: 6751 Columbia Gateway Drive State, Zip: Columbia, Maryland Telephone: Fax#: Grantee: Contact: Street Address: City, State, Zip: Telephone: Fax#: XX. MISCELLANEOUS A. Funding. The contractual obligation of the County under this Agreement is contingent upon the availability of appropriated funds from which payment for this Agreement can be made. B. Modifications. All conditions pertaining to this Agreement shall be binding and no verbal modifications by either part shall be enforceable. Amendments to this Agreement must be in writing and executed by both parties. 8

19 C. Assignment. Grantee may not, during the terms of this Agreement, assign or subcontract all or any part of the Grant award without prior written consent of the County. D. Extension. The County, in its sole discretion, may extend this Agreement beyond the initial term, provided the Grantee is satisfactorily complying with the terms and conditions set forth herein. E. Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State of Maryland. F. Amendments. The parties hereto may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, and are executed in writing and signed by a duly authorized representative of both parties. Such amendment shall not invalidate this Agreement, nor relieve the County or Grantee from its obligations under this Agreement. G. Severability. If any provision of this Agreement is held invalid, the remainder of the Agreement shall not be affected thereby and all other parts of this Agreement shall nevertheless be in full force and effect. H. Entire Agreement. This Agreement constitutes the entire agreement and understanding between the parties. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on, 2014 by affixing hereon their respective seals and signatures of the proper offices. [SIGNATURES TO FOLLOW] 9