Amendment No. 1 to ARPA Economic Expansion Rural Housing Grant Agreement FIRST AMENDMENT TO THE
AMERICAN RESCUE PLAN ACT
ECONOMIC EXPANSION RURAL HOUSING
GRANT AGREEMENT
This First Amendment is entered into between the Kansas Department of Commerce
(hereinafter referred to as "Commerce") and the City of Salina (UEI: KSMSJ3UBBTM5)
(hereinafter referred to as"Grantee") (hereinafter collectively referred to as "Parties") to amend
the ARPA Economic Expansion Rural Housing Grant Agreement (the "Agreement") dated
March 22, 2023.
WHEREAS, Grantee intends to construct a total of 500 housing units as part of the
Project in two or more construction phases (each phase shall be referred to as Phase 1 and Future
Phases, respectively). At the conclusion of each phase, Grantee intends to construct a minimum
of 250 housing units in Phase 1, and 250 housing units in one or more Future Phases, for a total
of 500 units.
WHEREAS, Commerce shall allocate three or more grant disbursements, one for land
acquisition, one for the Phase 1 construction phase, and one for each construction phase of the
Future Phases.
NOW,THEREFORE, the Parties agree as follows:
1. MODIFICATION OF SECTION V OF THE AGREEMENT.
Section V is deleted in its entirety and is replaced with the following:
V. GRANT FUNDS. In consideration of the covenants to be provided by Grantee,
Commerce agrees to provide grant funds in an amount not to exceed
$25,000,000.00 which shall constitute the maximum amount due by Commerce to
Grantee under this Agreement. Grant funds will be distributed into three or more
installments subject to Commerce's approval of match commitment
documentation demonstrating that Grantee, or subrecipients of Grantee, have
matching funds fully committed and available for use, as described in Attachment
E. For clarity"fully committed and available for use" shall not require that such
matching funds be expended by Grantee prior to each disbursement, except as
provided in Attachment E.
Commerce is providing these grant funds to Grantee for the express purposes set
forth in this Agreement, its Attachments and any subsequent amendments.
Allowable expenditures of grant funds are limited to those expenditures which are
consistent with the ARPA and this Agreement and any subsequent amendments.
Grantee shall comply with all applicable state and federal laws, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (2 CFR 200), including 2 CFR 200.302 Financial Management, 2
CFR 200.303 Internal Controls, 2 CFR 200.328 through 200.339 (Performance
and Financial Monitoring and Reporting), 2 CFR 200.334-200.338 (Record
Retention and Access), 2 CFR 200.400(a)-(c) and (e) (Policy Guidance), 200.403
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Factors Affecting Allowability of Costs, 200.404 Reasonable Costs and Subpart F
(Audit), the provisions of this Agreement, and additional directions provided by
Commerce or lawful guidance issued by the United States Department of the
Treasury.
2. MODIFICATION OF SECTION VII OF THE AGREEMENT.
Section VII is deleted in its entirety and is replaced with the following.
VII. COVENANTS OF GRANTEE. In consideration of the grant funds referenced
in Section V, Grantee must satisfy the covenants set forth in this Agreement. This
includes, but is not limited to, the following:
A. Use grant funds for eligible Project expenses as described in Grantee's
Grant Administration Plan and Budget (the "GAP") and subject to force
majeure, use good faith efforts to adhere to the Project timeline included
in Grantee's Grant Administration Plan and Budget.
B. Complete the expenditure of grant funds by the End Date.
C. Provide an updated GAP documenting all Future Phase Project expenses
and Project timeline by December 15, 2023.
D. Have matching funds for the Project in an amount equal to the grant
amount described in Section V. Matching funds shall consist of either
nonstate moneys and/or donated equipment from either the Grantee or a
private industry partner. Nonstate moneys means expenses and funds
received from sources other than Grant funds. A grantee seeking to utilize
donated equipment as a match must be verified and assessed as provided
in one of the following methods:
1. Appraised by the Office of Appraiser located within the Grantee's
County.
2. Appraised by an appraiser registered in the state of Kansas with the
Kansas Real Estate Appraisal Board.
3. Documented by a bill of sale for the value of the equipment as
purchased or sold no earlier than March 11, 2021.
E. Grantee shall request prior written approval from Commerce for changes
in any budget line item if these changes exceed twenty percent(20%) of
the total Project budget. The Grantee shall also request prior written
approval from Commerce for substantial changes in the scope or nature
of the Project. Any request submitted to Commerce seeking a change
contemplated under this provision must be accompanied by a quarterly
progress report.
F. Grantee must maintain adequate business systems to comply with Federal
requirements. The business systems that must be maintained are:
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1. Accounting: including separation of duties, internal controls for
transactions, documentation requirements to substantiate expenses
and meets generally accepted accounting principles
2. Procurement: including processes/standards that demonstrate
principles of fair and open competition with evaluation of costs
3. Conflict of Interest: including the process to identify and address
any conflicts.
4. Grant program compliance/management: including systems,
staffing and reporting.
Commerce reserves the right to review all business systems policies.
G. At Commerce's request, Grantee shall participate in calls and/or meetings
and permit Commerce on-site visits as necessary to monitor the progress
of the Project.
H. Grantee shall not supplant grant funding for Project expenses where
Grantee has received and utilized financial assistance for those same
Project expenses from another private, local, state, or federal source that
exceeds the need for financial assistance.
I. Grantee shall comply with all other provisions set forth within this
Agreement, the Attachments and any subsequent amendments.
J. Grantee shall obtain disposition instructions from Commerce should the
project no longer be needed or used for the authorized purpose.
K. Grantee shall maintain an active registration with SAM.gov.
L. Grantee attests it has read and understand the federal grant requirements
laid out in 2 CFR 200.
M. Grantee shall include all applicable and appropriate guidance, rules,
regulations and terms of this Agreement in any sub-award or contract
funded by these funds.
3. MODIFICATION OF SECTION X OF THE AGREEMENT.
Section X is deleted in its entirety and is replaced with the following:
X. DEFAULT. Default shall be viewed separately for Phase 1 and for each of the
other Future Phases. Commerce, in its discretion, may declare Grantee in default
under this Agreement upon the occurrence of any of the following:
A. Grantee's failure to apply the grant funds to the purposes set forth in
Section II of this Agreement without the prior written consent of
Commerce.
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B. Grantee's use of grant funds in a manner that is materially inconsistent
with Grantee's Grant Administration Plan and Budget, as the same may be
amended, which is incorporated into this Agreement (Attachment C).
Materially inconsistent shall include, but not be limited to, a Project that
results in (i) less than 250 housing units for Phase 1, or (ii) less than 200
housing units for Future Phases.
C. Grantee's failure to timely provide reports required under Section VIII of
this Agreement.
D. Grantee's failure to otherwise satisfy, in any manner, any of the other
obligations of Grantee as set forth in Section VII or any other part of this
Agreement and its Attachments, Grantee's Grant Administration Plan and
Budget, or any subsequent amendments.
E. Grantee's failure to utilize the matching funds described in Section V for
the Project and consistent with the Grantee's Grant Administration Plan
and Budget and the Special Condition(s) and Payment Schedule.
F. Commerce reserves the right to reject any use of the grant proceeds which
it determines, in its sole and exclusive discretion, does not meet the
criteria under the ARPA, the United States Department of the Treasury
guidelines and interpretations, both current and as may be amended and
supplemented in the future, associated with disbursement of funds under
the ARPA.
In the event of a default under this Section, Commerce shall provide Grantee with
written notice of default and an opportunity to cure such default. If the default
has not been resolved within thirty (30) days of the initial notice of default, then
Commerce, at its option, may (i) terminate this Agreement with respect to the
phase in default, (ii) in the event of fraud or application of grant funds that is not
included in Grantee's Grant Administration Plan and Budget, or subsequent
amendments, require any or all grant funds previously provided by Commerce to
be repaid by Grantee in accordance with Section XII, and/or (iii) not provide any
remaining grant funds to Grantee, with respect to the phase in default.
In the event of default under this Section X(E), after being given an opportunity to
cure, Grantee shall repay an amount equal to the difference between the amount
of grant funds that were provided and the amount of matching funds the Grantee
utilized for the Project.
4. MODIFICATION OF SECTION XI OF THE AGREEMENT.
Section XI is deleted in its entirety and is replaced with the following:
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XI. TERMINATION. Commerce may terminate this Agreement with respect to the
phase in default, if(i) Grantee has failed to comply with the conditions of this
Agreement or(ii) Grantee has used grant funds in a manner that is materially
inconsistent with Grantee's Grant Administration Plan and Budget, or subsequent
amendments. If this Agreement is terminated by Commerce, Grantee shall return
to Commerce any unexpended grant funds allocated to such phase in default,
within seven(7) days and provide a final report within 45 days after receiving
notice of termination. Termination shall be effective as of the date specified in
the notice.
5. MODIFICATION OF SECTION XII OF THE AGREEMENT.
Section XII is deleted in its entirety and is replaced with the following:
XII. REPAYMENT. In the event of default consistent with Section X or termination
consistent with Section XI as a result of fraud or application of grant funds for a
use that it ineligible under this Agreement, Grantee may be required to return any
expended grant funds with respect to the phase in default. Grantee shall also be
required to repay any ARPA funds granted under this Agreement with respect to
such phase in default that remain unspent. Commerce reserves the right to
determine the eligibility of the use of grant funds and shall reserve the right to
take expended or unexpended funds back from the Grantee for those uses of said
funds that are considered ineligible pursuant this Agreement, any subsequent
amendments, the Grant Administration Plan and Budget and reallocate part or all
of said funds prior to the End Date.
6. MODIFICATION OF ATTACHMENT E OF THE AGREEMENT.
The Special Conditions (s) and Payment Schedule (Attachment E) is deleted in its
entirety and is replaced with the following revised Special Condition(s) and Payment
Schedule, dated September 5, 2023,that shall be incorporated into the Agreement as
Attachment E.
7. All other terms and conditions of the Agreement shall continue in full force and effect.
KANSAS DEPARTMENT OF COMMERCE
1000 SW Jackson, Suite 100
Topeka, Kansas 66612-1354
Phone: (785) 296-1913
AMA-4.nirtegF 11/7/2023
David C. Toland, Lt. Governor and Secretary Date
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CITY OF SALINA
PO Box 736
Salina, Kansas 67401
Phone: (785)309-5700
mike.schrage@salina.org
i / 11/7/2023
Mi e chr.ge, City Manager Date
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Attachment E
SPECIAL CONDITION(S) AND PAYMENT SCHEDULE
Awardee: City of Salina
Pre-Award Documentation: 0001
Special Condition#1: The following Pre-Award documentation shall be submitted and accepted
prior to the initial disbursement of grant funds.
• SAM.gov entity registration for KSMSJ3UBBTM5 was not found. Entity
registration on SAM.gov must be completed remain active during the grant
period of performance.
• Copy of the RFP solicitation of services for the housing development
agreement submitted to Commerce in accordance with the professional
services selection guidelines submitted with the application.
• Completed Grant Administration Plan (GAP) detailing budget and timeline
of expenditures for Phase 1.
• $1,000,000 in matching funds have been documented to Commerce, fully
committed, and available for use.
Special Condition#2: The following Pre-Award documentation shall be provided by Grantee
once acquired:
• Proof of Permits
• Proof of Insurance
• Environmental Review
Special Condition#3: At minimum, 95% of the prior disbursement has been fully expended,
proof of cost and payment are submitted and accepted.
Special Condition#4: The initial $1,000,000 in matching funds have been fully expended, proof
of cost and payment are submitted and accepted, and it has been documented to the Department
of Commerce that Grantee, or subrecipients of Grantee have the proportional matching funds for
Disbursement 2 or 3, as applicable, fully committed and available for use. The term
"subrecipient"shall mean a developer selected by the Grantee as part of the RFP solicitation of
services referenced in Special Condition 1.
Special Condition#5: Submit a completed GAP detailing budget and timeline of expenditures for
Future Phases by December 15, 2023. In the event that such Future Phases GAP includes two or
more phases, Commerce and Grantee shall revise the Disbursement Schedule below as needed
(including dividing Disbursement 3 into two or more payments), to ensure that Grant funds can be
disbursed in proportion to matching funds so as not to delay construction.
Special Condition#6: All required Quarterly Reports are submitted with satisfactory progress of
the Project determined at the sole discretion by Commerce.
Special Condition#7: Grantee has submitted to Commerce an executed Phase 1 development
agreement between Grantee and the subrecipient who will develop Phase 1.
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91133392.6
Attachment E
Special Condition#8: Grantee has submitted to Commerce an executed Future Phases
development agreement between Grantee and the subrecipient(s) who will develop such Future
Phases by March 15, 2024.
PAYMENT SCHEDULE
Disbursement# Amount Requirement
1 $1,000,000.00 Executed Award Agreement, completion
of Special Condition 1 and documentation
reflecting 100%of the required match
amount grant funds as described in the
Agreement.
2 $12,000,000.00 Completion of Special Conditions 2, 3,4,
5, 6, and 7.
3 $12,000,000.00 Completion of Special Conditions 2, 3, 4,
5, 6, and 8.
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91133392.6