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HomeMy WebLinkAboutECHDA19-005 Impact Development FundFIRST AMENDMENT TO AGREEMENT BETWEEN EAGLE COUNTY HOUSING AND DEVELOPMENT AUTHORITY AND IMPACT DEVELOPMENT FUND THIS FIRST AMENDMENT (“First Amendment”) is effective as of _________________, by and between Impact Development Fund, a Colorado non-profit corporation (hereinafter “Consultant” or “Contractor”) and Eagle County Housing and Development Authority, a body corporate and politic (hereinafter “ECHDA”). RECITALS WHEREAS, ECHDA and Consultant entered into an agreement dated the 20th day of May, 2013 for certain Services (the “Original Agreement”); and WHEREAS, the Original Agreement contemplated that the Consultant would perform certain Services with compensation in an amount not to exceed $2,500; and WHEREAS, on December 5, 2018, the Parties agreed to an Assignment, Assumption, and Consent Agreement that extending the term of the Original Agreement; and WHEREAS, the ECHDA desires to have Consultant perform additional Services for additional compensation as set forth below; and WHEREAS, the term of the Original Agreement, as amended, expires on the 31st day of December, 2019, and the parties desire to extend the term for 3 additional years from the date of this First Amendment. FIRST AMENDMENT NOW THEREFORE, in consideration of the foregoing and the mutual rights and obligations as set forth below, the parties agree as follows: 1. The Original Agreement shall be amended to include additional Services as described in Exhibit 1, which is attached hereto and incorporated herein by reference. 2. The compensation for the additional Services set forth in Exhibit 1 shall not exceed $15,000 per year or a total maximum compensation under the Original Agreement and this First Amendment of $15,000 per year. 3. The term of the Original Agreement is hereby extended to March 31, 2022, provided that the term of this Agreement and all provisions herein shall extend to and cover any additional time period during which the Contractor remains in control of ECHDA’s funds or other assets. 4. Capitalized terms in this First Amendment will have the same meaning as in the Original Agreement. To the extent that the terms and provisions of the First DocuSign Envelope ID: 1D37D3B3-51AF-4ACA-9AEF-D9FDF1F215EE 3/5/2019 2 ECHDA Am Term Scope Comp Final 5/14 Amendment conflict with, modify or supplement portions of the Original Agreement, the terms and provisions contained in this First Amendment shall govern and control the rights and obligations of the parties. 5. Except as expressly altered, modified and changed in this First Amendment, all terms and provisions of the Original Agreement shall remain in full force and effect, and are hereby ratified and confirmed in all respects as of the date hereof. 6. This First Amendment shall be binding on the parties hereto, their heirs, executors, successors, and assigns. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Original Agreement the day and year first above written. EAGLE COUNTY HOUSING AND DEVELOPMENT AUTHORITY By: _____________________________ Kimberly Bell Williams, Executive Director CONSULTANT By: _____________________________________ Print Name:______________________________ Title: ___________________________________ DocuSign Envelope ID: 1D37D3B3-51AF-4ACA-9AEF-D9FDF1F215EE Sean Doherty Executive Director EXHIBIT 1 SCOPE OF SERVICES A. AUTHORITY will assume a leadership role to inform the public and other constituents of the availability and general guidelines of the AUTHORITY Mortgage Program, whereas Impact Development Fund (“IDF”) shall administer those functions related to loan origination and on-going loan services to AUTHORITY and its borrowers. The ECHDA Program Guidelines as established by ECDHA, shall form the basis for the loan origination portion of the Program (Exhibit 2). The Loan Servicing Policies as established by IDF attached hereto as Exhibit 2 and incorporated herein by reference shall form the basis for the loan servicing portion of the Program, and IDF’s administration thereof shall be consistent with such Program Criteria. B. IDF will receive, review and accept or reject loan applications from, or on behalf of, prospective borrowers in the Authority’s Three (3) Programs, Eagle County Loan Fund, Eagle County EHOP, Eagle County Division of Housing Program Criteria adopted by AUTHORITY. IDF will process applications within 48 business hours upon receipt of a complete application package and will issue a buyer Qualification Worksheet to ECHDA. The Program Criteria are attached hereto as Exhibit 2 and incorporated herein by reference. The Program Criteria may be changed from time-to-time by AUTHORITY, in its sole discretion, by written notice of such change to IDF, with any such change applied to loan applications which have not been accepted by IDF as of the date such changes are received by IDF, or the effective date stated in the notice, if any. If an application is accepted, IDF shall prepare all of the documents necessary to manifest the loan, the AUTHORITY’s security interest, the conformance of the loan to the respective Program, and compliance with all applicable laws, rules and regulations. C. IDF shall be responsible for defining and disclosing loan terms to qualified Program applicants under prevailing AUTHORITY Program Criteria of those Programs covered under this Agreement. Whenever IDF denies an application, IDF shall deliver written notice (“Notice of Credit Denial”), specifying the reasons for denial and source(s) of any adverse verification, if applicable, to the applicant and AUTHORITY within three (3) business days of such determination. Prior to issuance of a Notice of Credit Denial, IDF shall deliver to AUTHORITY a loan Qualification Worksheet that demonstrates all relevant application detail and reasons for denial. AUTHORITY reserves the right to accept IDF determination or approve any such application request through internal policy and procedure and advise IDF of such final credit determination. IDF shall abide by any decision rendered by AUTHORITY and accept the application as compliant to the Program Criteria. Except giving Notice of Credit Denial, IDF shall assume no responsibility with respect to AUTHORITY loan approval or borrower appeal where any appeal process shall be determined solely by AUTHORITY. D. IDF shall provide ongoing loan services to AUTHORITY and its borrowers. Such service shall include, but not be limited to, issuing monthly account payment statements to borrowers; issuing monthly account lender statements, bank statements and account reconciliation for the AUTHORITY; notices to borrowers include: annual borrower primary residence verifications, early repayment incentive notices to all borrowers within 2 year grace period, these notices will be issued 3 months before borrowers’ 2 year grace period ends, ongoing loan maturity review with notices to borrowers beginning 18 months, then 12 months then every month in advance of loan maturity; collecting and posting borrower remittances; responding to borrower and AUTHORITY inquiries; reconciling hazard insurance policies, renewals and cancellations, followed by corresponding notices to the borrowers as applicable; identifying and proactively responding to non-payment issues; negotiating modified repayment terms for those in default, engage borrowers for loss mitigation options; and, involve the AUTHORITY as necessary to resolve discrete borrower conditions as they arise. E. IDF standard reports are designed to meet AUTHORITY’s objectives and funding source requirements. Data reporting is flexible and can be reported in several ways, including program type, funding source and funding year. Such reports may include: Lender Report; Loan Amortization Schedule; Escrow Analysis Report; and Payment History with Memos. DocuSign Envelope ID: 1D37D3B3-51AF-4ACA-9AEF-D9FDF1F215EE F. IDF maintains strict confidentiality of sensitive information though also recognizes circumstances may call for more inclusive intervention. As normal practice, loan servicing activity will not directly involve AUTHORITY personnel. AUTHORITY will receive monthly reporting that will identify delinquent status of any borrowers. Unless aggravating circumstances have been identified, IDF will not typically request intervention from AUTHORITY until a loan reaches 60 day delinquency status. IDF shall promptly notify AUTHORITY of any loan that is 60 days delinquent. G. IDF staff will use reasonable best efforts to communicate with a delinquent borrower by mail, telephone and electronic channels to the extent available in an effort to understand individual circumstances and offer appropriate assistance. If it is determined by IDF that the borrower is in need of more intensive intervention, AUTHORITY will be engaged in a three-way communication process to determine and implement the most beneficial course of action. The decision to foreclose and enter into forbearance with borrower ultimately remains with AUTHORITY. H. IDF staff is responsible for payoff balance requests. IDF will provide an accurate payoff balance no later than 7 business days after a receipt of a written request from a homeowner. IDF will be responsible in determining if any amounts may be due for second mortgages, shared appreciation agreements; or recapture provisions. I. IDF staff shall process the cancellation of evidence of indebtedness and release of security interest as loans are fully satisfied. IDF shall execute, as loan servicing agent for AUTHORITY, security instruments, releases, conveyances, and such other documents as are reasonably necessary to document, enforce and release loans and the security therefore, subject to the limitations and conditions of, and only to the extent authorized to do so by, where evidence of such power is demonstrated by the agreement herein. J. All funds held for the benefit of AUTHORITY shall be held in interest-bearing account determined by IDF. Account holders will be comprised of IDF executive staff and two appointed ECDHA signors. Depository accounts shall be reconciled monthly and reviewed during third party audit proceedings. AUTHORITY retains the right to approve such institutions, approval for which shall not be unreasonably withheld. In the event the AUTHORITY should become dissatisfied with a depository institution for any reason, AUTHORITY shall notify IDF in writing and IDF shall transfer all funds to an approved institution within thirty (30) calendar days of such notice. K. IDF must review and approve any commercial communication, marketing or advertising collateral related to mortgage financing to ensure compliance with state and federal regulations under The Mortgage Acts and Practices – Advertising Rule. Commercial Communication defined as: any written or oral statement, illustration, or depiction, whether in English or any other language, that is designed to effect a sale or create interest in purchasing goods, or services, whether it appears on or in a label, package, package insert, radio, television, cable television, brochure, newspaper, magazine, pamphlet, leaflet, circular, mailer, book insert, free standing insert, letter, catalogue, poster, chart, billboard, public transit card, point of purchase display, film, slide, audio program transmitted over a telephone system, telemarketing script, on‐hold script, upsell script, training materials provided to telemarketing firms, infomercial, the Internet, cellular network, or any other medium. Cost of Services 2019 – fee will be calculated at $3.00 per loan in ECHDA portfolio 12/31/2018 2020 – fee will be calculated at $5.00 per loan in ECHDA portfolio 12/31/2019 2021 – fee will be calculated at $5.00 per loan in ECHDA portfolio 12/31/2020, not to exceed $15,000 DocuSign Envelope ID: 1D37D3B3-51AF-4ACA-9AEF-D9FDF1F215EE