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HomeMy WebLinkAboutC15-471 Community Development Block Grant ApplicationL625Broadway, Suite 2700 ?'#j;;;;;';z .,r'.il:t ' ::. ' '^:'l I lll 'r:r:: 'ir ;i :::'. -:.=t:' _"- .;. ."'' C15-471 APPLICATION CHECKLIST FOR COMMUNITY DEVELOPMENT BLOCK GRANT BUSINESS LOAN FUND Applications will be considered on an on-going basis if funds are available. For multi-iurisdictional applications, a copv of the application must be available for public review in each participatinq iurisdiction- as required bv HUD. A complete Community Development Block Grant (CDBG) application consists of: 1. Application Forms. One siqned oriqinal (siqnature of the chief elected official). In the case of a multi-jurisdictional application, all directly participating jurisdictions are required to sign this form. 2. Applicant Statement of Assurances and Gertifications. One siqned oriqinal (siqnature of the chief elected official). In the case of a multi-jurisdictional application, all directly participating jurisdictions are required to sign this form. 3. Gitizen Participation Plan. One siqned oriqinal (siqnature of the chief elected official). In the case of a multi-jurisdictional application, all directly participating jurisdictions are required to have a Citizen Participation Plan and to submit it with the application. 4. Public Hearing. Oriqinal publisher's affidavit with an attached copv of the public notice. At least one public hearing must be held prior to the submission of an application. Adequate notice of the public hearing must be published at least once in a newspaper of general circulation at least 5 days prior to the public hearing. lt should also be posted in the Cityffown Hall or County Courthouse and in other places frequented by the public, especially low and moderate income persons, benefitting from or affected by proposed CDBG activities. In the case of a multi-jurisdictional application, all directly participating jurisdictions are required to publish a notice pertaining to the public hearing in at least one newspaper in their jurisdiction having area-wide circulation and each participating jurisdiction is required to hold at least one public hearing. This may be one combined public meeting if properly advertised in the other jurisdictions. lntergovernmental Agreement. Required onlv in the case of a multi-jurisdictional application. One siqned oriqinal (siqnatures of the chief elected officials) of a fully executed, legally binding cooperation agreement between the designated lead jurisdiction and all other directly participating municipalities and counties. In the case of a multi-jurisdictional application, all directly participating jurisdictions are required to sign this agreement. ResidentialAnti-displacement and Relocation Assistance Plan. One siqned oriqinal(siqnature of the chief elected official). In the case of a multi-jurisdictional application, all directly participating jurisdictions are required to have a Residential Anti-displacement and Relocation Plan and to submit it with the application. 5. 6. Page 2 ot 29 Please forward the completed application to: Colorado Office of Economic Development and International Trade Robert Todd 1625 Broadway, Suite 2700 Denver, Colorado 90202 Phone: (303) 892-3840 Fax: (303) 892-3848 TDD: 1-800-659-2656 Grantee DUN's # (Eagle County) O*4O24MT Page 3 of 29 APPLICATION FORMS FOR COMMUNITY DEVELOPMENT BLOCK GRANT BUSINESS LOAN FUND fqpli""nt, 19dr"_"",City, State, Zip: Eaqle, CO 81631 Contact: John Lewis Date: Phone: 970-328-8600 Title: Finance Director Addre^ss: PO Box 2308 / 249 Warren Avenue City, State, Zip: Silverthorne, CO 8049g Contact: Liz Mullen Service Area: Funds Requested: $ 754.000 Proposed CDBG Budget: Activitv 1. Assistance to Businesses: Proposed Leverage 2. Administration: Proposed Match $104.000 3. Other: (describe if any) Amount $6s0,000 $140,000 Source CDBG Revolved Funds Status Pending Committed Pending Page 4 of 29 4' Please outline the proposed administrafirze budget for each year of the proposed business loan fundcontract term as follows: BLF BUDGET CDBG Funds Other TOTAL Requested Funds Source A. ADMINISTRAT|ON: 9104,000 CDBG Funds$ 7,894 Revolved funds Personnel flist bv position): NLF Program Director:Salary $ 63,0S3 Taxes and Benefits $ 15,120 Operatinq: Office Supplies/Expenses: $ 7,100Accounting: $ 2,160Indirect $ 8,082Rent: $ 2,244 Travel: Travel& Meetings: $ 9,000 Other: B. OTHER FUNDS REQUESTED OR COMMITTED: Page 5 of 29 Please describe how the proposed BLF policies address the following required elements: 1. Job Creation/Retention (and National Obiective): All borrowers for the Community Development Block Grant (CDBG) or Micro Enterprise Program (MEP) Creation/Retention Method will be required to demonstrate how they will create or retain jobs. The goal of the NWCCOG and the Northwest Loan Fund program ("NLF") is to create or retain 1 job for every $20,000 loaned. The ratio of 1 job/g20,000 loaned may be flexible as long as the overall State contract requirements of jobs per NLF dollars loaned is met. For the purposes of these policies, a job is defined as a direct full time position of at least 32 hours per week, 50 weeks per year. A seasonal position of six (6) months is one-half a full time equivalent (FTE) and, therefore, one-half job. Borrowers are generally required to create the jobs within 12 months of loan closing and must report results to the NWCCOG at least quarterly. The Federal Objective requires that at least 51% of the jobs are held by low or moderate income persons. Although the primary purpose of this program is to develop and create new jobs, a secondary financing if a business within the region can adequately demonstrate to the_NWCCOG that jobs wiil be lost if the business loan fund assistance is not provided. Job Creation for the MEp will not be required under the Limited Clientele Method. 2' Business Tvpes: The purpose of the NLF is to support business activities for which credit is not othenvise available on terms and conditions which would permit completion and/or successful operation or accomplishment of the project in the defined eligible areas to create and/or retain employment opportunities primarily for persons from low and moderate income households. Any private, for-profit or non-profit businesses located in any of the five counties of State planning Management Region 12 (Eagle, Grand, Jackson, Pitkin & Summit Counties), and Garfield, Moffat, Rio Blanco and Routt Counties are eligible for business assistance if the firm's proposal meets the other eligibility requirements. Firms receiving financial assistance are not restricted to specific sizes of business. Generally the NWCCOG/NLF targets businesses that are non-competing in the local economy, primarily exporting a value added product and importing revenue from outside the region, filling a niche in the local economy not currently being filled, and some consideration is given to iocal priorities such as tourism development. However, the NWCCOG//NLF will consider assistance to any type of business providing that jobs are being created or retained. Categories and priorities for undenivriting guidelines are as follows: Expansion of existinq business: Projects receiving the highest priority are expansions of existing businesses which are value added producVservice exporters and importers of revenue. Within this category, businesses which have the potentialto hire lowto moderate income persons would be given a higher priority. Retention of existinq iobs: Projects receiving the next priority are existing businesses, which need assistance in retaining existing jobs. Start up/new business: The next prioritywill be given to start up and new businesses within the region. 3. Minimum & Maximum Amounts of loans to be made: Loans for amounts less than $1,000 will not be considered. Loans in amounts less than $30,000 may be approved if the representative from the County in which the business is located and any two members of the Loan Committee are in agreement and approve the application. Loans in amounts between $30,000 and $100,000require the approval of a majority (3) of a quorum (5) of the full Loan Committee. Loans in excess of $100,000 require a2l3vote of the Loan Committee. 4. Leveraginq: The overall target leveraging of CDBG funds will be 2:1or the NLF will not exceed 33o/o of the overall financing. will not exceed 33% of the overall financing. The 2:l ratio may be Page 6 of 29 5. reduced on a case by case basis, special need basis if the overall average leveraging of the portfolio has achieved the 2:1 required leveraging. Assistance will be provided to all borrowers in securing other sources of financing for their business loans. This assistance in obtaining other financing will consist of introductions to local banks, other state and federal lending programs, etc. Rates & Terms: Interest rates will typically be, and will not exceed, 2o/o above the prime interest rate as published by the Wall Street Journal at the time of loan committee approval. The maximum interest rate on the Micro Enterprise Program (MEP) will be 4o/o over prime per annum. MEP loans may be made with a variable interest rate. The term of the loan will be a minimum of one vear and no longer than 10 years. Fees: Loan application fees shall be 2% of the loan amount as an origination fee to assist in loan package preparation, payable from loan proceeds at time of closing. Use of Proceeds: BLF funds for the CDBG and MEP programs can be used to finance the following:. Capital Equipment. Inventory. Working Capital. Purchase of existing buildingse Other fixed assets. Equity participation in exchange for business shares or royalty payments. Refinance of existing debt (must demonstrate special need)o Construction of new facilities and renovation of interiors and exteriors (discouraged due to David-Bacon Wage and other Federal Requirements) Gollateral Requirements: The BLF CDBG and MEP programs will require collateral. NLF in all cases will take a security agreement on all business assets. When possible, NLF will take the next available lien position on equipment, buildings, and realestate financed with NLF funds. lf the borrower owns property in the local area, NLF will generally take the next available deed of trust position on the realestate along with the above mentioned business assets, unless other collateral is agreed upon. Personal guaranties of all principals with at least 20% ownership will be required on all loans. Co-signers will be required when requested by the loan committee. All security interests will be perfected to adequately protect the NLF security interest. Tvpes of Assistance: (loans. eauitv. ouarantees- etc-l: Four types of business assistance are available from this program. Each type of assistance will be used under the following circumstances: 1) Under most circumstances loans will be made to applicants. 2) Loan guarantees will be made when a guarantee is all that is necessary to motivate the lending institution to make the remainder of the loan and when in the event of foreclosure. the collateral is assigned to the NWCCOG/NLF and the collateral is liquid and adequate to provide reimbursement of the loan guarantee. 3) Participations will be used when collateral is adequate to satisfy the primary lender and NLF and when the borrower and primary lender are willing to comply with federal, state and NLF requirements. 4) Loan buy-downs will be made when a loan buy-down motivates the lending institution to make the 6. 7. 8. 9. PageT of 29 remainder of the loan, and when cash flow of the NLF is adequate, as determined by the loancommittee, to maintain operation of the loan fund. All of the above types of financial business assistance are subject to compliance with the HUD-CDBGEnabling Act, NLF policy, and NLF Loan Committee and oEDIT approval in any given specific project. Past Performance: Past Performance: Alt Grant AGREEMENTS* CDBG TotalAssistance CDBG Administration CDBG Business Assistance Admin/Total Ratio Adm in/Bus. Assistance Ratio Loans Made Jobs Created/Retained Low/Mod Jobs % LoMMod Jobs Defaults CDBG Funds Lost Loss as a o/o of Total Assistance Loss as a o/o of Loans Made Leveraged Funds Proposed $3,762,022 $ 528367 $3,233,655 14.05% 16.34% 101 411 257 62.53% 45 $1,204,930- 32.03o/o 3737% $ 5,478,312 Leveraged Funds Actual $ g,459,289 (2.25_to_1)* Does Not include recoveries yet to be made or othenvise not reported to date. Several of theselosses were in the early years of the fund and are reported here, going back more than the normal last7 years. Management: 1' Please describe your proposed administrative structure. Specify who is responsible for completingdefined tasks. Be specific. ' The Northwest Colorado Councilof Governments (NWCCOG) willoperate the NorthwestLoan Fund (NLF) as one of its programs and hire a Nlr Business Loan Officer. Operatingexpenses€re covered through the 16% admin fee that is allowed as part of the CDBG grintprogram, Revolved Funds, COG Funds and other sources as may be required. The NLFBusiness Loan Officer will report directly to the NWCCOG Executive Director as a NWCCOGemployee. ' The NLF Business Loan Officer will convene a regional loan committee that includes onerepresentative from each of the nine participating counties and the NWCCOG ExecutiveDirector. The NLF Loan Committee will serve in in advisory capacity in accordance with theoperating guidelines, bylaws, and loan criteria as approved-by the ruWCCOC Council. Theparticipating counties may make recommendations ior the NLF Loan Committee and themembers will be approved by the NWCCOG Council.o NWCCoG Councilwill review, revise and update the NLF operating guidelines, by-laws, andloan criteria. NWccoG Council will receive bi-monthly reports on tnJ NLF activity at each oftheir regularly scheduled meetings. ' The NLF Business Loan officer will market the business loan program throughout the nine-county region and collect loan applications.o NLF loan committee will review the Loan Officer's recommendations and make a decision onwhich businesses should receive loans.o The NLF Business Loan Officer will fonvard the loan committee's recommendations to OEDITfor approval. Page 8 of 29 . OEDIT will send a letter authorizing specific loans.. The NLF Business Loan Officer will process the loans authorized by OEDIT.. OEDIT/DOLA will send loan fund check to Eagle County.. Eagle County will pass the loan funds through to NLF.. The NLF Business Loan Officer completes and submits all required reports to OEDIT. NLF and cDBG funds are included in NWCCoG's independent A-133 audit.2' Describe the composition of your loan committee. Describe its relationship to the governing board. The NLF Loan Committee may include one representative from each of the nine participating counties and the NWCCOG Executive Director. Of the nine county representatives, it is preferred that at lealt one person will have loan making experience, at least one person will have a legal background, at least one person will have a real estate background, and at least two persons will have a background in business. 3. Describe the relationship between the BLF and the unit of local government which is sponsoring this application. Eagle County as the lead county is the NWCCOG's largest member. The NLF is a program within the NWCCOG, and the NWCCOG is the sub-grantee. 4. Describe the relationship between the BLF and lending institutions in the service area. These relationships will be rebuilt through the NLF Business Loan Officer and loan committee members. TheNLF has historically maintained excellent working relationships with local lending institutions. The NLF Business Loan Officer will work to market the NLF to all of the lending institutions in ihe service area and re- establish these positive working relationships. 5. How does the BLF relate and coordinate with other economic development activities in the area? The NWCCOG received Economic Development District (EDD) designation from the U.S. EDA in2012. Asa result, the NWCCOG-EDD Board oversees all regionaleconomic development efforts and the NWCCOG- EDD convenes a working group every other month, which is made up of a broad range of stakeholders including government officials, education, workforce, chambers of commerce, as *Jll as key industry representatives from the region. The workgroup meets to guide the regional economic development efforts ofNWCCOG-EDD and the NLF Business Loan Officer will be included in this on-going conversation as a member of the workgroup. Please attach a proposed project list. The list should include: type of project; amount requested; and status. Please attach a copy of your Loan Policy for Regular and Micro Enterprise Loans. 6. 7. To the of my knowledge and belief, submi has been duly and data in this application are true and correct and their the governing body of all participating jurisdictions. Eaqle Countv Jurisdiction Garfield Countv Page 9 of 29 tz.li. zoS DateElected Official Signature, Chief Elected Official Date Signature, Chief Elected Official Signature, Chief Elected Official Jurisdiction Grand Countv Jurisdiction Jackson Countv Jurisdiction Moffat Countv Jurisdiction Pitkin Countv Jurisdiction Rio Blanco Countv Jurisdiction Routt Countv Jurisdiction Summit Countv Jurisdiction Date Signature, Chief Elected Official Signature, Chief Elected Official Signature, Chief Elected Official Signature, Chief Elected Official Signature, Chief Elected Official Page 10 of 29 APPLICANT STATEMENT OF ASSURANCES AND CERTIFICATIONS FOR COMMUNITY DEVELOPMENT BLOCK GRANT BUSINESS LOAN FUNDS The applicant hereby assures and certifies that: (a) lt: (1) (2) Possesses legal authority to apply for the grant and to execute the proposed project, and itsgoverning body has duly adopted or passed as an official act a resoluiion, motion oi similar action authorizing the filing of the application, including all understandings and assurances contained therein, and directing and authorizing the applicant's chief executive officer and/orother designated official representatives to act in connection with the application and toprovide such additional information as may be required; and Has developed its application, including its projected use of funds, so as to give maximumfeasible priority to activities which will benefit low and moderate income persons or aid in theprevention or elimination of slums or blight. (The requirement for this certification will notpreclude the State from approving an application where the applicant certifies and the Statedetermines, that all or part of the proposed project activities are designed to meet othercommunity development needs that have arisen during the preceding twelve-month period and have particular urgency because existing conditions pose a serious and immediatethreatto the health or welfare of the community and where other financial resources are notavailable to meet such needs.) Furthermore: (A) With respect to activities it claims benefit low and moderate income persons, it hasdetermined and documented that not less than fifty-one perceni (51%) of the beneficiaries of the activity are low and moderate income persons; and (B) With respect to activities it claims aid in the elimination of slums or blight, it has determined and documented: (i) For activities to address slums or blight on an area basis: (l) The area meets a definition of a slum, brighted, deteriorated or deteriorating area under State or local law; (ll) Throughout the area, at reast twenty-five percent (2s%) of the buildings are in a state of deterioration or two or more types of public improvements are in a state of deterioration; (lll) Documentation is being maintained on the boundaries of the areaand the condition which qualified the area at the time of its designation; (lV) The assisted activity addresses one or more of the conditions which contributed to the deterioration of the area: and (V) Rehabilitation will only be undertaken on residential structures which are not occupied by low and moderate income persons if such structures are substandard under localdefinition, and provided that all deficiencies making such structure substandard must be corrected before less critical work on the structure may be Page11of29 (b) (c) undertaken. (ii) For activities to address slum or blight on a spot basis, the activities must bedesigned to eliminate specific conditions oi otignt oi prrysicat decay andmust be limited to acquisition, clearance, relocJtion, historic preservation and rehabilitation of.buildings, but only to the extent necessary to eliminatespecific conditions detrimentarto pubiic hearth and safety. It is following a detailed citizen participation plan which: (1) Provides for and encourages citizen participation with particuJar emphasis on participation bypersons of low and moderate income who are residents of slum'and ntilrrilreas and ofareas in which Community Development Block Grant (CDBG) runos aie-pioposeo to beused; (2) Provides citizens with reasonable and timely access to local meetings, information, andrecords rerating to its proposed and actual use of CDBG funds: (3) Provides for technical assistance to groups representative of persons of low and moderateincome that request such assistancl in developing froposals with the level and type ofassistance to be determined by the applicant; (4) Provides for public hearings to obtain citizen views and to respond to proposals andquestions at all stages of the community development program, in;luJing at least thedevelopment of needs, the review of propoied activiiies, and ,"ii"w or f rog;;performance,which hearings shall be held after adequate notice ui tir", and locations convenient topotential or actual beneficiaries, and with accommodation for tfre nanJicappeJ; (5) Provides for a timely written answer to written complaints and grievances, within 15 workingdays where practicable; and (6) ldentifies how the needs of non-English speaking residents will be met in the case of publichearings where a significant number of non-Engish speaking residents ."n o" reasonablyexpected to participate. In the case of a multi-jurisdictional application, all directly participating jurisdictions are required tohave a citizen Participation pran and to submit it with the ajpri."iion. It has provided for and encouraged citizen participation, with particular emphasis on participation bypersons of low and moderate income who are residents of slum and blight "r"", "no of areas inwhich CDBG funds are proposed to be used, by: (1) Furnishing citizens information concerning the amount of funds available for proposedcommunity development and housing activities and the range of activities that may beundertaken, including the estimated amount proposed to be used foractivities thatwill benefitpersons of low and moderate income and its plans for minimizing oisptacemlnioi p"rron. ".a result of activities assisted with CDBG funds and to assist per-"on" actualrv oisplaced as aresult of such activities; (2) Publishing a proposed project plan/application in such a manner to afford citizens anopportunity to examine its content and to submit comments on the proposed projectplan/application and on the community development performance of the jurisdiction(s); (3) Holding one or more public hearings, as indicated below, to obtain citizen views and to Page 12 of 29 respond to proposals and questions related to community development and housing needs,proposed activities and past CDBG performance. All hearings will be held no soo-ner thanfive days after notice, at times and locations convenient to polential or actual beneficiaries, and with accommodation for the handicapped and for the needs of non-English speakingresidents where a significant number of such residents may reasonably b-e expected toparticipate. Applicant's Public Hearinq Date Time Location (4) (5) Eaole countv 121081201s 10:00 a.m. Eaqle countv Bocc Room, 500 Broadwav. Eaqte CO 81631 As applicable, providing citizens with reasonable and timely access to local meetings,information and records regarding its proposed and past use of CDBG funds; In preparing its project plan/application, considering any such comments andviews and, if deemed appropriate, modifying the proposeo proyett plan/application; Making the final project plan/application available to the public; and ldentifying its community development and housing needs, including the needs of low andmoderate income persons, and the activities to be undertaken to meet such needs. In the case of a multi-jurisdictional application, all directly participating jurisdictions arerequired to have a Citizen Participation Plan and to submit it with th'e app-lication. ln the event it is awarded CDBG funds by the State it will: (1) Follow a residentialanti-displacement and relocation assistance plan which shall: (A) In the event of such displacement, provide that: (i) Governmental agencies or private developers shall provide within the same community comparable replacement dwellings for the same number of occupants as could have been hous-ed in the occupied and vacant occupiable low and moderate income dwelling units demolished or converted to use other than for housing for low and moderate income persons, and provide that such replacement housing may include existing housing assisted with project based assistance provided under Section 8 of the United States Housing Act of 1937: (ii) such comparable replacement dwellings shall be designed to remain affordable to persons of low and moderate income for 10 years from the time of initial occupancy; (iii) Relocation benefits shall be provided for all low or moderate income persons who occupied housing demolished or converted to a useother than for low or moderate income housing, including reimbursement for actual and reasonable moving expensesl security deposits, credit checks, and other moving-related expenses, including any interim living costs; and, in thq case of displaced persons of row and moderate income, provide either: (l) compensation sufficient to ensure that, for a S_year period, (6) (7) (d) Page 13 of29 (e) the displaced families shall not bear, after relocation, a ratio of sherter costs to income that exceeds 30 percent; or (ll) if elected by a family, a lump-sum payment equal to the capitalized varue of the benefits avairabre undersub-crause(l) to permit the household to secure participation in a housing cooperative or mutual housing association. (iv) Persons displaced shallbe relocated into comparable replacement housing that is: (l) decent, safe, and sanitary; (ll) adequate in size to accommodate the occupants; (lll) functionallyequivalent;and (lV) in an area not subject to unreasonably adverse environmental conditions. (B) Persons displaced shall have the right to elect, as an alternative to thebenefits under this subsection to receive benefits under the UniformRelocation Assistance and Real Property Acquisition Policies Act of 1g70 ifsuch persons determine that it is in their best interest to do so; and (C) Where a claim for assistance under subparagraph (A)(iv) is denied bygrantee, the claimant may appeal to the State, and thai the decision of theState shall be final unless a court determines the decision was arbitraryand capricious. In the case of a multi-jurisdictional application, all directly participating jurisdictions are required to have a ResidentialAnti-displacement and Relocation AjJstance plan and to submit it with the application. (2) Comply with the provisions of the above paragraph (1) except that paragraphs (A)(i)and (A)(ii) shall not apply in any case in which the Secretaryof ftre i-r.s.-oepartment of Housing and Urban Development finds, on the basis of o6jective data, that there isavailable in the area an adequate supply of habitable affordible housing for low andmoderate income persons. A determination under this paragraph is final and nonreviewable. (3) Provide citizens with reasonable notice of, and opportunity to comment on, anysubstantial change proposed to be made in the use of CDBG funds tror on" "iigior"activityto another byfollowing the same procedures required in paragraph (c)ioitnepreparation and submission of the final project plan/application. It will: (1) Minimize displacement of persons as a result of activities assisted with CDBG fundsand provide for reasonable benefits to any person involuntarily and permanenly displaced as a result of the use of CDBG funOi to acquire or subsiantialy rehabilitateproperty. (2) Affirmatively further fair housing in addition to conducting and administering its Page 14 of 29 (3) project in conformity with Public Law 88-352 and Public Law 90-284 as certified inparagraph (h) hereinafter. In the case of a multi-jurisdictional application, all directly participating jurisdictions are required to affirmatively further fair housing Not attempt to recover any capital costs of public improvements assisted in whole orpart with CDBG funds by assessing any amount against properties owned andoccupied by persons of low and moderate income, including any fee charged orassessment made as a condition of obtaining access to such public improveirents, unless: (A) CDBG funds are used to pay the proportion of such fee or assessment that relates to the capital costs of such public improvements that are financed from revenue sources other than the CDBG program, or (B) for purposes of assessing any amount against properties owned and occupied by persons of moderate income who are not persons of lowincome, it certifies that it lacks sufficient cDBG funds to comply with the requirements of subparagraph (A). (f)Its chief executive officer or other officer of the applicant approved by the State: (1) (2) Consents to assume the status of responsible Federal official under the National Environmentgl PolicyAct of 196g (NEPA) and other provisions of Federal law, asspecified in 24 cFR Part 58, which further the purposes of NEpA, insofar as theprovisions of such Federal law applyto the Colorado Community Development BlockGrant (CDBG) Program; and ls authorized and consents on behalf of the applicant and himself/herself to acceptthe jurisdiction of the Federal courts for the purpose of enforcement of his/herresponsibilities as such an official. (g) (h) It will comply with the financial management regulations, policies, guidelines andrequirements set forth in the CDBG Direct Economic bevelopment projecti and Businessloan funds'Guidebook. It willcomplywith: section 110 of the Housing and community Development Act of 1974, asamended, and any State regulations regarding the administration and enforcement of labor standards. Davis-Bacon Fair Labor Standards Act (40 USG 276a -276a-51 requiring that, onall prime contracts which exceed $2,000 for federally_assisied 'consltruction, alteration or rehabilitation, laborers and mechanics employed by contractors orsubcontractors shall be paid wages at rates not less than thoie prevailing on similarconstruction in the locality as determined by the secretary of Lador. (This requirement applies to the rehabilitation of residential property only if such property isdesigned for use of eight or more families.) contract work Hours and safety standards Act of i962 (40 usc 327 et seq.)requiring that mechanics and laborers employed on federaily-assisted contractswhich exceed $2,000 be paid wages of not less than one and one-half times their (1) (2) (3) Page 15 of29 basic wage rates for all hours worked in excess of forty in a work week. (4) Copeland "Anti-Kickback". Act. of 1934 (40 USC 276 (cll prohibiting andprescribing penalties for "kickbacks" of wages in federally- financeo or assistedconstruction activities. (i) lt will compty with: (1) Title Vl of the Civil Rights A9t of 1964 (Pub. L.88-352; 42 USC 2000 (d))prohibiting discrimination on the basis of race, color, religion or religious affiliation, ornational origin in any program or activity receiving feoerat financiJl assistance. (2) The Fair Housing Act (42 USC 3601-20), as amended, prohibiting housingdiscrimination on the basis of race, color, religion, sex, nationaiorigin, handi"ap, an|familialstatus. (3) Section 109 of the Housing and Community Development Act of 1974 (42 USC5309), as amended, providing that no person shall be excluded from participation (including employment), denied program benefits or subjected to discrimination onthe basis of race, color, national origin or sex under any program or activityfunded inwhole or in part under Title | (Community Developmen-t) of tne Ho'using anOCom munity Development Act. (4) Executive Order 11063 (1962), as amended by Executive Order l221g,requiring equal opportunity in housing by prohibiting discrimination on the basis of race, color,religion, sex or national origin in the sale or rental of housing Ouitt witfr federalassistance. Executive order 11246 (i965), as amended by Executive order ll3Ts,prohibitingdiscrimination on the basis of race, color, religion, sex or nationalorigin in anyphasJof employment during the performance of federal or federally-assisted contracts inexcess of $2,000. (6) Section 3 of the Housing and Community Development Act of 196g (i2 USC1701 (u))' as amended, providing that, to the greatest extent feasible, opportunitiesfor training and employment that arise through ttUo-financed projects, *irt n" jiu"n to lower-income persons in the project area, and that contracts be awarded tobusinesses located jn the project area orto businesses owned, in substantial part, byresidents of the project area. (7) section 504 of the Rehabilitation Act of 1gr3 (2g usc 793), as amended,providing that no otherwise qualified individual shall, solely by reason of a handicap,be excluded from participation (including employment), dlnied program beneiits orsubjected to discrimination under any program or activity receivin! federal funds.Effective communication with personi of all types of Oisa'Oilities mu-st be ensured. (8) Age Discrimination Ac!9f 1grs, (42 usc 6101), as amended, providing that noperson shall be excluded from participation, denied program benefits or sub]ected todiscrimination on the basis of age under any program-or activity receivini federalfunds. It will comply with: (1) Section 104(d) of the Housing and community Devetopment Act of 1974, as (5) (i) Page 16 of29 (k) amended (42 usc s301), known as the "Barney Frank Amendment,'. and the HUD implementing regulations at 29 CRF Part 570, requiring that localgrantees follow a residential anti-displacement and relocation assistancJplan which-provides for the replacement of all low/moderate-income dwelling units that are demoiished orconverted to another use as a direct result of the use of CDBG funds, and whichprovides for relocation assistance for all low/moderate-income households sodisplaced. (2) Uniform Retocation Assistance and Real PropertyAcquisition policies Act of 1970, as amended - Tifle lll, Real property Acquisition (pub. L. 91-646 and HUD implementing regulations at 49 CFR Part 241, providing for uniform and equitable treatment of persons displaced from their homes, businesses, orfarms byfederal or federally- assisted programs and establishing uniform and equitable landacquisition policies for federal assisted programs. Requirements include bona fideland appraisals as a basis for land acquisition, specific procedures for selecting contract appraisers and contract negotiations, furnishing to owners of propefito be acquired a written summary statement of the acquisition price offer based'on t'he fair market price, and specified procedures connected with condemnation. (3) Uniform Relocation Assistance and Reat PropertyAcquisition policies Act of 1970, as amended - Title ll, Uniform Relocation Assistance (pub. L. 91-646and HUD implementing regulations at 49 GFR Part 24), providing for fair andequitable treatment of all persons displaced as a resuli of an-y federal orfederally-assisted program. Relocation payments and assistance, last-resort housing replacement by displacing agency, and grievance procedures are covered under the Act. Payments and assistance will be made pursuant to state or local law, or the grant recipient must adopt a written policy available to the public describing the relocation payments and assistance that will -be provided. Moving expenses and up to $22,500 or more for each qualified homeowner or up to $S,Z-SO or more for each tenant are potentialcosts. It will complywith: (1) National Environmental PolicyAct of 1969 (42 USC 4321 etseq.), as amended, and the implementing regulations of HUD (24 CFR Part 58) anO oi tne Council onEnvironmental Quality (40 CFR Parts 1500 - 15OS) providing for establishment ofnational policy, goals, and procedures for protecting, rest,oring and enhancing environmental quality. (2) National Historic Preservation Act of 1966 (16 USC 420 et seq.), as amended, requiring consideration of the effect of a project on any districi, site, building,structure or object that is included in or eligible for inclusion in the National Registerof Historic Places.(3) Executive Order 11593, Protection and Enhancement of the CulturalEnvironment, May 13,1971(36 FR 8921 et seq.) requiring that federally-fundedprojects contribute to the preservation and enhancement oi sites, structures andobjects of historical, architectural or archaeological significance. (4) The Archaeological and Historical Data Preservation Act of 1974, amending theReservoir salvage Act of 1960 (16 usc 469 et seq.), providing for- thepreservation of historic and archaeological data that would be lost due tofederally-funded development and construction activities. Page 17 of 29 (t) (5) Executive order 11988, Floodplain Management, May 24,1grr (42 FR 26951 etseq.) prohibits undertaking certain activities in flood ptains unless it has beendetermined that there is no practical alternative, in which case notice of the actionmust be provided and the action must be designed or modified to minimize potential damage. (6) Executive Order 11990, Protection of Wetlands ,May 24,1gT7 (42FR 26961 etseq.) requiring review of all actions proposed to be located in or appieciably affecting a wetland. Undertaking or assisting new construction located in weflandi must beavoided unless it is determined that there is no practical alternative to suchconstruction and that the proposed action includes all practical measures tominimize potential damage. (7) safe Drinking water Act of 1974 (42 usc 201, 300 f et seq., 7401 et seq.), asamended, prohibiting the commitment of federal financial assisiance for any prolect which the Environmental Protection Agency determines may contaminate an aquiferwhich is the sole or principal drinking water source for an area. (B) The Endangered species Act of 1973 (16 usc 1s31 et seq.), as amended,requiring that actions authorized, funded, or caried out by the federal government donot jeopardize the continued existence of endangered -and threateried species orresult in the destruction or modification of the habitat of such species which isdetermined by the Department of the Interior, after consultation with the State, to becritical. (9) The wild and scenic Rivers Act of 1968 (16 usc 12zl et seq.), as amended,prohibiting federal assistance in the construction of any water resouices project thatwould have a direct and adverse affect on any river included in or design"t"O fotstudy or inclusion in the National wild and scenic Rivers system. (10) The Glean AirAct of 1970 (42 usc 1g57 et seq.), as amended, requiring thatfederal assistance will not be given and that license or permit will not be issu-ed toany activity not conforming to the State implementation plan for national primaryand secondary ambient air quality standards. (1 1) HUD Environmentat Criteria and Standards (24 GFR Part 51) providing nationalstandards for noise abatement and control, acceptable separaiion distan-ces fromexplosive or fire prone substances, and suitable land uses'for airport 1.rn*"y "i""1.zones. It will: (1) Comply with The Lead-Based Paint Poisoning Prevention Act - Tifle lV (42 USC4831) prohibiting the use of lead-based paint in residentialstructures constructed orrehabilitated with federal assistance, and requiring notification to purchasers andtenants of such housing of the hazards of lead-based paint and of the symptoms andtreatment of lead-based paint poisoning. (2) Comply with the ArmstrongMalker "Excessive Force" Amendment, (p.L. 101- 1441 & Section 906 of Cranston-Gonzalez Affordable Housing Aci of 1990,which requires that a recipient of HUD funds must certify that they h-ave adopteJ orwill adopt and enforce a policy prohibiting the use of excesjive force 'ny tawenforcement agencies within their jurisdiction against individuals "ngut"O innonviolent civil rights demonstrations; or fails to adopt and enforce uloii"y ot Page 18 of29 (m) enforcing applicable state and local laws against physically barring entrance to or exitfrom a facility or location which is the subject of suin non-violent civil rights demonstration within its jurisdiction. (3) comply with the "Government-wide Restriction on Lobbying, (p.L. 101-121), which prohibits spending CDBG funds to influence or attempt to iniluence federal officials; which requires the filing of a disclosure form when non-CDBG funds are used for such purposes; which requires certification of compliance by the state; andwhich requires the state to include the certification language in grant "*aids itmakes to units of general local government at all tiers a-nO tnat alisub-recipients shall certify accordingly as imposed by section 1352, Tiile 31, u.s. cooe. nnyperson who fails to file the required certification shall be subject to civilpenaltyof not less than $10,000 and not more than 9100,000 for each failure. (4) Complywith the Department of Housing and Urban Development Reform Act of 1989 (24 CFR part 12) requiring applicants for assistance for a specific project or activity from HUD, to make a number of disclosures if the applicant meets adollarthreshold for the receipt of covered assistance during the iiscal year in which anapplication is submitted. An applicant must also make the diiclosures if it isrequesting assistance from HUD for a specific housing project that involves assistance from other governmental sources. (5) Give the State, the U.S. Department of Housing and Urban Development (HUD), andany authorized representatives access to and the rights to examine all records, books, papers or documents rerated to the apprication and grant. It_will comply with all parts of Title 1 of the Housing and Community Development Act of1974, as amended, which have not been cited previously as well aiwith other applicablelaws and regulations. Page 19 of 29 SIGNATURE PAGE APPLICANT STATEMENT OF ASSURANCES AND CERTIFICATIONS FOR COMMUNITY DEVELOPMENT BLOCK GRANT BUS LOAN FUNDS Signature, Chief Elected OfficialSignature,Elected Official Chair. Eaole Countv BOCC Title and .turi Chair. Pitkin Countv BOCCTitleand.lur@ Signature, Chief Elected Official Chair. Garfield Countv BOCC Title and .lur Cnair. nio ehnco C Title and Jurisdiction (Typed or printed) Signature, Chief Elected Official Signature, Chief Elected Official Signature, Chief Elected Official Chair. Summit Countv BOCC Title and Jurisdiction (Typed or printed) Date Signature, Chief Elected Official Chair. Grand Countv BOCC Title and ..luris Chair, Routt Countv BOCCTitleandJ@ Signature, Chief Elected Official Title and Jurisdiction (Typed or printed) Signature, Chief Elected Official Chair. Moffat Countv BOCC Title and.lur Page 20 of 29 BUSINESS LOAN FUNDS Pursuant to section 1oa(a)(3) of the Housing.and community Development Act of 1g74, asamended, this citizen participationPlan..is hereby adopted to ensure that the citizens of EeGiE couNTy, particutaity p"rron, of low and moderate incomeresiding in slum and blight areas and in areas in which CDBG fund_s are proposed to be used, are provided the opportunityandencouraged to participate in the planning and implementation of CDBdJunded activities. PUBLIC HEARING Public hearings will be the primary means.of obtaining citizen views and responding to proposals and questions related tocommunity development and housing needs, proposei CDBG activities and past cdao performance. Prior to submitting a GDBG application to the state, EAGLE couNTY will conduct at least one public hearing to identifycommunity development and housing needs, including the needs of low and moderate income persons, as wellas other needsin the community that might be addressed through thj cDBG program, and to review proposed CDBG activities and the pastperformance of NWCCoG in carrying out its cbec responsibilities. In the event ioac funds are granted by the state,EAGLE coUNTY will conduct at leasfone additional publt hearing to allow citizens to review and comm jnt on its performancein carrying out its CDBG program. A formal public notice will be published in a newspaper of general circulation in the jurisdiction's area at least five (5) days priorto the public hearings. In the case of a multi-jurisdiction-al application, all direcfly farticipating jurisdictions are required topublish a notice pertaining to the public hearing in at least one newspaper of general circulation in each jurisdiction and eachparticipating jurisdiction is required to hold at lelst one public hearing. 'A pubic notice wiil also be posted in EAGLE couNTycourthouse and in -other places frequented^by the public, especially low and moderate income persons and personsbenefitting from or affected by proposed CDBG activities. As circumstances warrant and as EAGLE couNTy determinesnecessary or appropriate, participation may additionally be specifically solicited from persons of low and moderate income,those benefitting from or affected by cDBd activities "no/or iepresentatives of such persons. Hearings will be held at timesand locations convenient to potential and actual beneficiaries, and with accommodation ror the handicapped. In the case ofpublic hearings where a significant number of non-English speaking residents ""n u" reasonably expected to participate,arrangements will be made to have an interpreter present. PUBLIC INFORMATION AND RECORDS Information and records regarding the proposed and past use of CDBG funds will be available atNorthwest colorado council of Governments ("NWccoG") office, 24g waren Avenue, silverthorne, co g04gg duringregular office hours' The public will be so informed by public n'oti.". special communication aids can be made available topersons upon request. TECHNICAL ASSISTANCE Nwccoc will provide technical assistance to groups representative of persons of low and moderate income that requestassistance in developing CDBG proposals. The level and type of assjstanc" uppropri"te will be determined by NWccoGbased on its ability to provide or arrange for such assistance, ihe cost of providing such assistance and other relevant factors. WRITTEN COMMENTS AND RESPONSES EAGLE couNTY and NWGGoG will respond, jointly or individually as the situation may warrant and at the discretion ofEAGLE couNTY, to written complaints ano giievances in writing in a timely manner. when practicable, such writtenresponses shall be made within fifteen (15) working days. NOTE: CITIZEN ADVISORY COMMITTEES ARE NoT REQUIRED. IF oNE IS PRoPoSED, HoWEVER,THE COMMITTEES'ROLE AND COMPOSITION SHOULD BE INCLUDED IN THIS CP PLAN. Iv-ffi . 7/$rS - SUGGESTED FORMAT.CITIZEN PARTICIPATION PLAN FOR COMMUNITY DEVELOPMENT BLOCK GRANT Chair. Eaqle Countv BOCC Title and Page 21 of 29 Date BUSINESS LOAN FUNDS Eagle County, as Applicant and NWGGOG, as Sub-Grantee, plan to submit a Community Development Block Grant (CDBG)application to the State of Colorado, Department of Local Affalis, c/o the office of Economic Development and InternationalTrade' CDBG funds are intended to provide decent housing, suitable living environments and economic opportunities,principally for low and moderate income persons through renabilitation and preirvation, economic development (generallyjobcreation/retention) and public facilities improvements. ln regards to all FY i+ cogc progr"r., it is estimated that $g,292,594will be available statewide for distribution to units of .gen6ral local government in the state's nonentiflement areas. Foreconomic development projects, it is estimated that f z,o+z,ggg witt oe available statewide for distribution for economicdevelopment to units of general local government in the state's nonentiflement areas. fh" application being considered would request $754,000 forBusiness Loans through the Northwest colorado council of Governments ("NWCcoG") and its Northwest Loan Fund. lt isestimated that approximately 51o/o" of the funds would benefit low and moderate income persons. permanent involuntarydisplacement of neighborhood persons or businesses is not anticipated. Should it later become n""".."ry to consider suchdisplacement, alternatives will be examined to minimize the displacement. lf no feasible alternatives exist, required/reasonablebenefits will be provided to those displaced to mitigate adverse effects and hardships. Any low and moderate income housingwhich is demolished or converted will be replaced. A public hearing will be held at 10:00 a.m. on Tuesday. December 8,2015 at the BocG Meeting Room, Eagle countyAdministration Building, 500 Broadway, Eagte, Colorado to obtain citizen views and to respond to proposals and questionsrelated to the proposed CDBG application for the above-referenced economic development activities. written comments are also welcome and must be received by Decemb er 7, 2015 at Northwest colorado council ofGovernments, Po Box 2308, 249 warren Avenue, Silverthorne, co 80498. 6ral, written and email comments will beconsidered in deciding whether to submit an application for the proposed project. Written summary information will be availableat Northwest Colorado Council of Governments, iqg' W^rr"n Avenue, Silverthorne, CO g04gg onNovembgl 23, 2015 until December 7,2015 on any CDBG application(s) the Northwest Colorado Council of Governmentsintends to submit to the state. A copy of the application(s) as submitied to the state will be available for fublic review atNorthwest Colorado Council of Governments, PO Box 2308, 249 Warren Avenue, Silverthorne, CO g04gg afterDecember 8.2015. Information and records regarding the Northwest Colorado Council of Governments proposed and past use of CDBG funds areavailable at Northwest Colorado Council of Governments, 249 Warren Avenue, Silverthorne, co g04gg during regular officehours' Advance notice. is requested. lf special accommodations are needed, ptease notify the Northwest colorado council ofGovernments so that the appropriate aids can be made available. NOTE 1: THIS NOTICE MUST BE PUBLISHED IN A NEWSPAPER oF GENERAL cIRcULATIoN IN THEJURISDICTION AT LEAST FIVE (5) DAYS PRIOR TO THE pUBLtC HEAR|NG. tt shoutd atso be posted inthe City Hall, Town Hall or County Courthouse and in other places frequented by the public-ESpECIALLyLoW AND MODERATE INCOME PERSONS BENEFITTING FROM OinrreCrED BypROpoSED CDBGACTIVITIES. NOTE 2: EACH APPLICANT PARTICIPATING DIRECTLY IN A MULTI.JURISDIcTIoNAL PRoJEcT IS REQUIREDTO CONDUCT A PRE-APPLICATION PUBLIC HEARING AND TO PROVIDE PUBLIC NOTICE. THEPUBLIC NOTICES MAY BE COMBINED WITH NOTICES FOR OTHER NON-CDBG ACTIVITIES AND THEPUBLIC HEARINGS MAY COVER THE CDBG APPLICATION PLUS THE OTHER NON-CDBG ACTIVITIES.* For projects with more than one activity, provide the estimated amount for each activity anolhe estimatedpercentages by which each activity will benefit low and moderate income persons.** For multi-jurisdictional applications, written summary information and a copy of the application must beavailable for public review in each pariicipatinq iurisdiction, ?s required by HUD - SUGGESTED FORMAT PUBLIC NOTICE AND NOTICE OF PUBLIC HEARING FOR COMMUNITY DEVELoPIVIENT BLocK GRANT Page 22 of 29 SUGGESTED FORMAT RESIDENTIAL ANTIDISPLACEMENT AND RELOCATION ASSISTANCE PLAN FOR COMMUNITY DEVELOPMENT BLOCK GRANT BUSINESS LOAN FUNDS EAGLE couNTY will replace all occupied and vacant occupiable low/moderate income dwelling units demolished or convertedto a use other than as low/moderate income housing as a direct result of activities assisted wiin coac funds, as required bysection 104(d) of the Housing and community Development Act of 1974, as"r"no"o ltre Act), and implementing regulationsat 24 CFR 570.496a. All replacement housing will be provided within three years of the commencement of the demolition or rehabilitation relating toconversion' Before obligating or expending funds that will directly result in such demolition or conversion, EAGLE COUNTy willmake public and submit to the state the following information in writing: 1. Description of the proposed assisted activity; 2' The general location on,a map and approximate number of dwelling units by size (number of bedrooms) that will bedemolished or converted to a use other than as low/moderate dweliing unitsLs a direct result of the assisted activity; 3. A time schedule for the commencement and completion of the demolition or conversion; 4' The general location on a map and approxlinate number of dwelling units by size (number of bedrooms) that will beprovided as replacement dwelling units; 5. The source of funding and a time schedule for the provision of replacement dwelling units; and 6' The basis for concluding that each replacement dwelling unit will remain a loMmoderate income dwelling un1 for atleast 10 years from the date of initial occupancy. EAGLE cOUNTY will provide relocation assistance, as described in 570.496a(b)(2), to each low/moderate income householddisplaced by the demolition of housing or by the conversion of a loMmoderate income dwelling to another use as a direct resultof assisted activities. consistent with the goals and objectives of activities assisted under the Act, EAGLE couNTy will take the steps indicatedbelow to minimize the displacement of persons from their homes:* * The following are examptes of steps to minimize displacement. The first two are required. The others areoptional. only check those which are appropriate for ihe project and tocal circumstances. Add other steps asnecessary or appropriate. X Consider all practical alternatives to any proposed project which may result in residential displacement. Alternatives to beconsidered include other sites for the proposed facilities/project. Also to be considered aie the costs and benefits, bothfinancial and nonfinancial, of each alternative. X Provide counseling and referralservices to assist displaces to find alternative housing in the community. Work with area landlords and real estate brokers to locate vacancies for households facing displacement. Stage rehabilitation of assisted housing to allow tenants to remain during and after rehabilitation, working with emptybuildings or groups of empty units first so they can be rehabilitated flrst ano tenants moved in before rehab onoccupied units or buildings is begun. Establish temporary relocation facilities in order to house families whose displacement will be of short duration, so theycan move back to their neighborhoods after rehabilitation or new construction. Evaluate housing codes and rehabilitation standards in reinvestment areas to prevent their placing undue financialburden on long-established owners or on tenants of multi-family buildings. Page23 of 29 Develop displacement watch systems in cooperation with .neighborhood organizations to continuously reviewneighborhood development trends, identify displacement problemi, ano ioentirvindividuals facing displacement whoneed assistance. iilzlz t-Date - Chair. Eaqle County BOCC Title and.luris Page 24 of 29 INTERGOVERNMENTAL AGREEMENT FOR COMMUNITY DEVELOPMENT BLOCK GRANT BUSINESS LOAN FUNDS THIS AGREEMENT, made this 1. Eagle County 2. Garfield County 3. Grand County 4. Jackson County 5. Moffat County 6. Pitkin County day of 2015, by and among the following: 7. Rio Blanco County 8. Rouff County 9. Summit County (each a ,,party,,, collectively the .,parties,'). WHEREAS, the Parties to this Agreement have the authority pursuant to Article XlV, Section 18 of the Colorado Constitution and Sectio n29-l-201,et. seq., Colorado Revised Statutes, to enter into intergovemmental agreements for the purpose of providing any service or performing any function which they can perform individually. WHEREAS, the Parties to this Agreement desire to cooperate in developing and carrying out a Community Development Block Grant ("CDBG") project (the "CDBG nro;Lcf;;, the purpoJe of which is to provide a revolving business loan fund for the region through the Northwest Colorado Council of Governments ('NWCCOG") and its Region 12 Revolvirg Lour Fund Corporation, a colorado 50 I (c)(3) corporation, d/b I aNorthwest Loan Fund('NLF"). Now THEREFORE, the Parties hereby mutually agree as follows: 1. Desienation of Lead Party. EAGLE couNTy shall act developing and carrying out said proposed CDBG project. as the lead party in 2. Responsibilities of Lead patv. In its capacity of lead paw, EAGLE couNTy shall be the leadjurisdiction in making a Business Loan Application ("Application,) to the State Department of Local Affairs (the "State") for CDBG funds utrO r6utt U. the grantee of the State for such funds, if awarded pursuant to a CDBG grant contract. As the grantee of the State, it shall be fully and solely responsible to the other parties to this Agreement for compliance with all financiai management, environmental review, labor standards, civil rights, recordkeeping, reporting and other requirements of the CDBG program set forth in the Applicant Siatement of Assurances and Certifications contained in the Application, and in the CDBG grant Page2l of 29 aJ. contract with the State. Notwithstanding the foregoing, EAGLE COIINTY shall not be responsible to the other Parties to this Agreement for compliance with any requirements of the CDBG program, its grant contract with the State or this Agreement where responsibility for such compliance has been assumed by others, nor shall it be responsible for those individual responsibilities of all Parties set forth in Paragraph 3 below. Responsibilities of All Parties. Each Party to this Agreement shall be individually responsible for compliance with the following requirements of the CDBG program: a) adopting a required Citizen Participation Plan, and providing to its citizens information and opportunities to comment as required bythe State in developing an Application for CDBG grant funds and in substantially changing proj ect activities. b) identifyingitscommunitydevelopmentandhousingneeds,including the needs of low and moderate income persons, and the activities to be undertaken to meet such needs: c) adopting a required Anti-displacement and Relocation Assistance Plan which calls for replacement of demolished or converted lodmoderate income housing units and provision of necessary relocation assistance; and d) taking action to affirmatively further fair housing. Furthermore, each Party to this Agreement shall provide documentation to EAGLE COUNTY demonstrating its compliance with the requirements specified in the Paragraph 3 above and EAGLE COTINTY shall retain such documentation and other required records and documents for the period of time specified by the State. Contractinq. EAGLE COUNTY shall contract with NWCCOG or with other eligible individuals or entities to carry out all or any portion of the responsibilities assumed by EAGLE COUNTY under this Agreement and its CDBG grant contract with the State. Upon execution of any such contract(s), NWCCOG, or such other eligible individuals or entities, shall assume and shall be fully and solely responsible for the performance of EAGLE COUNTY's responsibilities under this Agreement, EAGLE COIINTY's grant contract with the State, and for compliance with all requirements of the CDBG program. Term of Agreement. This Agreement shall remain in full force and effect for so long as the Parties to this Agreement are pursuing CDBG funding for said proposed Project or, if awarded, carrying out such Project activities. Any Party to this Agreement may, however, terminate its participation in this Agreement three (3) months after providing written notice of such termination to the other Parties of this Agreement. This Agreement may be terminated at any time by agreement of all Parties to this Agreement unless a CDBG grant contract is in effect with the State. In this case, the State must approve such termination and arrangements for completing the Project. 4. 5. Page 26 of 29 6. Modification and Changes. The terms ofthis Agreement maybe modified or changed at any time by written agreement of all Parties to this Agreement. 7. Non-Fund Obligating Document. Nothing in this Agreement shall obligate the Parties to obligate or transfer any funds other than CDBG grant funds. 8. Participation in Similar Activities. This Agreement in no way restricts any of the Parties from participating in similar activities with other public or private agencies, or ganizations and individuals. 9. Governing Law. This Agreement shall be subject to the laws of the State of Colorado and nothing herein shall be construed as in any way affecting or waiving the jurisdiction or existing rights of any signatory party to this Agreement. IN WITNESS WIIEREOF, the parties hereto have executed this Agreement on the day first above written. COUNTY OF EAGLE, STATE OF COLORADO, by and through its ATTEST: By: lJl-A-4L- Clerk to the County Commissioners h\i 't ATTEST: By: Clerk to the Board of County Commissioners ATTEST: Clerk to the Board of County Commissioners By: COUNTY OF GARFIELD, STATE OF COLORADO, by and through its BOARD OF COT]NTY COMMISSIONERS Chairman COUNTY OF GRAND, STATE OF COLORADO, by and through its BOARD OF COT]NTY COMMISSIONERS By:By: bt vn, o Page 27 of 29 Chairman ATTEST: Clerk to the Board of County Commissioners ATTEST: couNTY OF JACKSON, STATE OF COLORADO, by and through its BOARD OF COT]NTY COMMISSIONERS By: Chairman couNTY OF MOFFAT, STATE OF COLORADO, by and through its BOARD OF COT]NTY COMMISSIONERS Chairman COUNTY OF PITKIN, STATE OF COLORADO, by and through its BOARD OF COUNTY COMMISSIOI\ERS By: Chairman COUNTY OF RIO BLANCO, STATE OF COLORADO, by and through its BOARD OF COUNTY COMMISSIONERS By: By:By: Clerk to the Board of County Commissioners ATTEST: By: Clerk to the Board of County Commissioners ATTEST: By:By: Clerk to the Board of County Commissioners Page29 of 29 Chairman ATTEST: Clerk to the Board of County Commissioners ATTEST: COUNTY OF ROUTT, STATE OF COLORADO, by and through its BOARD OF COUNTY COMMISSIONERS By: Chairman COUNTY OF SUMMIT, STATE OF COLORADO' by and through its BOARD OF COUNTY COMMISSIOI\ERS Chairman By: By:By: Clerk to the Board of County Commissioners Page29 of 29 Past Performance:NORTHWEST LOAN FUND Prior to 7-31-13 7-31-13 to presentCDBGTotalAssist{ncffi $1,036,031rsrlauen $ b6Z.36Z $ 142,891 Dusuress Asstsrance (toans) $3.233.655 $ 893,140 rrrurdf F.auo 14.05%13.8% u!r. r\sstsrance Kalto 16.34 16% rvtaue i01 16 Jobs Created/Retained 411 44\ruus Zbl 33 fvruu \ruus 62.53"h 75%Defaults - TV -0- ,vrJDrr runos tosr $1,204.930 -0-Lossasa%oftotaffi -0- d -/o et Loans tvaoe 3l.3lVo -0- Lnvvrcrguu t-unos rroposgo $5,419,312 $1,786,280 dgeu runos Acruar $6.459.299 (2.25:1\$2,544,204 I NLF Applications pending 10-3-15 Applications that have been prequalified and encouraged:- 5 soo,ooo Athletic Facility 5 g0,O0O Meat processing - S 90,000 Machine Shop- S 1O,O0O Restaurant expansion- S 60,000 Restaurant retention- S 100,000 Excavating expansion- S 20,000 Mobile Detail- S 100,000 paint Store- S 90,000 lce Cream expansion of 20 year business- S 40,000 Woodworking Shop- S go.ooo Brewery Total $1,190,000 '.uts't v n; u r ^ {,r ***.%" .pouNcIL ()F (}OVSRNM ll ildMfuFryfu*- 'iIU()reTH\fi/E$T L()AN FUNN LOAN POLIGY Revision Date: March 2OL4 Aaruontents DEFINITIONS oBIECTTVES SOURCES OF FUNDS USE OF FUNDS INELIGIBLE USE OF FUNDS LOAN COMMITTEE CONFLICT OF INTEREST LOAN APPROVAL LOAN UNDERWRITING GUIDETINES LOAN APPLICATION PACKAGE CONFIDENTIALITY LOAN SERVICING DEFAULT PROCEDURES ALLOWANCE FOR IOAN LOSS RESERVE DEFINITIONS Board shall refer to the Region L2 Revolving Loan Fund Corporation (R12 RLFC) dba Northwest Loan Fund (NLF) Board of Directors which is one and the same with the Northwest Colorado Council of Governments (NWCCOG) Council. Approved shall mean (a) approve loans and loan structure for submission to the Office of Economic Development and International Trade (oEDlT) for final approval under the open Grant contract and,(b) approve loans and loan structure of loans made with Revolved Funds. Open Contract shall refer to funds directly from the Community Development Block Grant (CDBG) and its Micro-Enterprise program (MEp). Revolved Funds shall refer to funds that have been repaid from a CDBG Open Contract. OBIECTIVES o To improve the economic base of and/or bring new wealth into the nine Northwest Colorado Counties by providing loans to businesses that will create or retain jobs (6DBG - at least 51% of the jobs have to be persons from low to moderate family income households (LMt)). o To provide access to capital for business expansion, retention, or start-up to low and moderate income persons. o To bring a value added product or fill a niche in the local economy not currently being filled. o To bring revenue from outside the Northwest counties.o To encourage financial and economic self-sufficiency of business clients toward eventual move to traditional sources. SOURCES OF FUNDS for the NLF include: o Community Development Block Grant (CDBG) o community Development Brock Grant (cDBG)-Micro-Enterprise Loan Program - Loans St00,000 or under (MEp) o Revolved Funds (Funds repaid from a CDBG loan) USE OF LOAN FUNDS o Business assets o Equipment/machinery o Inventory o Raw materials o Purchase of existing business o Renovation/fixtures of business occupied building o Business occupied building purchase o Construction of new facility o Working Capital o Payroll o Accounts Receivable financing INETIGIBTE USE OF FUNDS o Pyramid or Networking Sales Enterprises . Gambling or gaming operations o Real Estate development . Land purchase o Franchises (with CDBG funds) o Production agriculture o Marijuana related businesses LOAN COMMTTTEE (LCL The LC shall be appointed by the Board and shall be comprised of one member from each county served by the NLF, as available. service on the LC is voluntary. [C Duties The Loan Committee (LC) shall: (a) review loan package and credit displays as presented by Business Loan officer(b)recommend loans and loan structure to the Colorado office of Economic Development and International Trade (oEDlT) for approval under the open Grant Contract and, (c) approve loans and loan structure of loans made with Revolved Funds. LC Composition It is the goal to have one member from each county with at least one person having businessloan making experience, one having business legal experience and one having commercial realestate experience; the other members will be or have been business owners. The ExecutiveDirector of the Northwest Colorado Council of Governments (NWccoG) will be an ex officio,non-voting, member of the Loan Committee. candidates will be presented to the Board for approval. ' LC Term The term of five LC member is two years, and the term of four LC members is one year. After the first term, all terms shall be two years. A person appointed to fill a vacancy will serve to the date of expiration of the term being filled. There is no limit to the number of terms a committee person may serve. The LC committee shall appoint a chair and vice-chair from among the members. LC Meetings Meetings may be attended in person or by telephone or video conferencing. Meetings will be scheduled for one time per month and may be called as needed. Special Meetings may be catled with non-simultaneous email votes due by a specified date and time. LC Packets will be sent via confidential email; it will be the goal to have packets out one weekprior to the meeting. Meeting will be run by the chairperson. lt will be the goal to have minutes distributed one week after a meeting. LC members shall be required to attend at least 50% of regularly scheduled meetings. LC Quorum A quorum shall be a simpre majority of totar members (5). Votes must be documented in LC meeting minutes denoting vote in person, by email or by FAX. Email or FAX votes will be attached to minutes. Two objections by committee members will cause the loan to be re-presented on a future agenda. CONFLICT OF INTEREST Definition A conflict of interest includes advising, approving, recommending or otherwise participating in the business decisions of the loan recipient, such as agents, advisors, consultants, attorneys, accountants or shareholders. Disclosure Verbal disclosure is required of any conflict of interest with a borrower, guarantor or other party to the transaction. The LC member will not place a motion or a second, and must abstain from voting. Conflicts of interest will be reported to the Board. LOAN APPROVAL 1.. A quorum of LC may approve a loan application. 2' Loans of 525,000 or less upon recommendation of the Business Loan Officer, can be approved by a quorum (simple majority) via non-simultaneous email votes by a specified date and time. 3. Approvals will be documented by Roll call of LC members. 4. Approve provisions for technical assistance for MEp applicants 5' Approved loans will be reported to the Board/NWccoc council at regularly scheduled meetings. LOAN UNDERWRITING GUIDELINES I. The minimum loan amount is S5,OO0 2' The term may vary based on use of funds and collateral but not to exceed L0 years.3. Interest rates and Fees will vary based on loan size and risk. 4. costs related to closing will be paid by the borrower. 5. All loans will be collaterarized by all business assets. 6' Personal guarantees, of individuals with 20%or more ownership, will be required.7' The Business Loan officer will make a site visit prior to presenting the toan to LC (any exceptions will be documented and noted by Lc). Upon the decision, by the Business Loan officer, to present the loan for LC approval, LC members are encouraged to make agroup site visit. In particular the member from the county in which the prospect is located, is required to make a site visit. 8' Monthly payments of principal and interest are the norm; adjustments will be made for seasonal businesses THE THREE C's - Character, Collateral, Credit It is intended that NLF loan analysis be more reliant on character, collateral, general feasibility and ability to repay and then on credit. o Northwest Loan Fund - Loan Application BusinessP|an:History,CompanyDescription,P'od,.t@ llan & competition, Management of k"y frn$gns & Resumes, suppliers & Terms Projections: o Cash Flow projections, with explanation of assumptions, then by quarter o Profit/Loss projections, with expranation of assumptions, then by quarter by month for L't year, by month for 1.'t year, o Breakeven (Sales required to cover costs BusinessFinancialStatements*(BFS)Ba|ancesh including most recent month endo Business Tax Returns * (BTR) April or.ft"t, in.lud. prio,. y.r,. .nd Business collateral: o Equipment (Description, Age, Condition, Value)o Equipment to be purchased - contracts or bidso Inventory (Description, Value)o Accounts Receivable (Customer, Invoice Date) oPersonalfinancia|statementwithschedu|es&K- more o Personal Tax Returns* (prR) for ownership of 20"/" o, ^*" o a Articles of lncorporation, by-laws, trade name affidavit or franchise agreement Documentation of who is authorized to borrowo Copy of Lease o copy of commitment retters from other fin.n.inliour."r- o Job Creation Statement including existing staff For Real Estate collateral: Copy of Owners Title Policy or Warranty Deed, Appraisalif available, Environmental review if available oForBusinessAcquisitions-Contractdetai|ing* o Other information as requested Pleose send all items on the checklist ot one time and in order of checktist. *Three years PTR, BTR, BFs, all signed and dated unless business life is less than 3 years. I CONFIDENTIALITY Financial information on the businesses and their owners will be kept confidential. Note: LC Packets will be sent via confidential email. LC members will sign a confidentiality/conflict ofInterest Agreement. The business name, terms, amounts, employment levels and agreements will be a public record and will be made available upon request. Borrowers will be informed ofthis with the initial loan package. confidentiality Agreements have been signed by Loan committee members, staff and the NWccoG lr contractor who will or may come in contactwith confidential information. A Telecommuting agreement signed by Anita cameron provides for security of confidential information during travel/off site work. secure print will be used to protect confidential documents. security for laptop and smartphone are set to high. Laptop and smartphone access will be protected by Passcodes and Log off. passwords will be changed at least quarterly. social security numbers will be protected, by black out, when not essential for the recipient. CLOSING DOCUMENTATION closing Documents checklist (Exhibit B) with 'NEED' items marked, will be presented in LC packets as part of the loan approval. At closing, the Business Loan officer shall initial the'HAVE'column and prior to funding, ?Ir additional person shall confirm documentation and initial 'HAVE'. LOAN SERVICING It will be the goal of the NLF to maintain contact with each customer. A site visit is preferred. A memo of customer contact/visits will be placed in the loan file. DEFAUTT PROCEDURES Loans delinquent 30 days or more will be reported to the LC monthly and Board bi-monthly (in Program Update) with comments on collection actions. The Business Loan officer is authorized to offer a Loan Modification/Extension agreement for up to three months. Modifications/Extensions will be reported to the LC and Board. where possible, accrued interest will be collected extending any loan payments. After period of appropriate collection activities, recommendations to place a loan on non- accrual or to write off the balance, may be made by the Business Loan officer or LC, and approved by the Board. The NLF will maintain an Allowance for Loan Loss (ALL) as an estimate of potential loan losses as a footnote to NLF Loans Receivable. A colorado Housing and Finance Authority (chfa) credit Reserve Account may be used as ALL and reported as a footnote to NLF Loans Receivable. Each loan will be graded and a percentage allowance set aside for each risk class. Loan grading will be updated semi-annually with loan grades reported to the Board. Loan Grades and percentage reserve: -Satisfactory - 1% reserve -Watch - 10% reserve -Substandard -30% -Doubtful - 60% Eagle Garfield Grand Jackson Exhibit A Northwest Loan Fund - Communities Served Avon Basalt Eagle Eagle-Vail Edwards El Jebel Gypsum Minturn Red Cliff Vail Battlement Mesa Carbondale Glenwood Springs New Castle Parachute Rifle silt Fraser Granby Grand Lake Hot Sulphur Springs Kremmling Winter Park Walden Craig Dinosaur Maybell Moffat 10 Page 2 Northwest Loan Fund - Communities Served Pitkin Rio Blanco Routt Summit Ashcroft Aspen Basalt Meredith Redstone Snowmass Snowmass Village Woody Creek Meeker Rangely Rio Blanco Clark Hayden Oak Creek Steamboat Springs Yampa Phippsburg Toponas Blue River Breckenridge Dillon Dyersville Frisco Heeney Keystone Montezuma Silverthorne 11 NLF Loan Glosing Documentation Ghecklist SECTION | (Leftl NEED WAIVE HAVE I DOCUMENT UCC Search Lessor's Agr Invoice for P NEED WAIVE HAVE I DOCUMENT l Security Aqreementt_< l Chattel (vehic rl--_U_ I DR 2395 I lnvoice for purchase Money S@ l "* Deed(s) of Appraisal/Evaluation o&E DOCUMENT Certificates nment of Stock/Bond power NLF Loan Glosing Documentation Ghecklist SECTION | (Risht) BORROWER(S}: Amount $ Approval Date_ (loan number) Conditions: Term - Fee _ Interest Rate LOAN DOCUMENTS: NEED WAIVE HAVE I DOCUMENT I pocqmentation Checklist (this fo l .. OED|T Aoo - SBA or Otne - - Continuing G I 13 NLF Loan Glosing Documentation Ghecklist SECTION ll (Left) INSURANCE: DOCUMENT Evidence of lnsurance (Nlf as toss LICENSES/PERMITS/ZONING : DOCUMENT DOCUMENT Authorization to Borrow Sole Proprietor/Partnersh ip / Articles Certificate of Good Standi Authorization to Grant Collateral oiGuarantee DOCUMENT 14 NLF Loan Glosing Documentation Ghecklist SECTION ll (Riqht) DOCUMENT MISCELLANEOUS: DOCUMENT Costs Collected DOCUMENT Check copies Purchase Mo Interest(s 15 NLF Loan Glosing Documentation Ghecklist SECTION ilt (Lefr) DOCUMENT Personal Financial SGternent Personal tr" *"t Application file) SECTION ltt (Riqht) NOTES: HAVE column to be initiared by Business Loan officer and Audit I Interim BusinessTinancials Fiscal YearEnd/fffi Business Tax ReturnsAccountsReceiv@ 16