FY20 Stategy DRA Disaster RecoverySTATE OF NORTH CAROLINA
NORTH CAROLINA OFFICE OF STATE BUDGET & MANAGEMENT
AND
NEW HANOVER COUNTY
MEMORANDUM OF AGREEMENT
MOA No.: DRA_FLO_13624 -J
MOA Amount: $2,000,000
DPS Fund Code No.: 2D24
OSBM Cost Center Nos.: 23160009
MOA Performance Period of Performance: October 31, 2019 - December 31, 2021
This agreement made on this the 31 st day of October 2019, by and between NEW
HANOVER COUNTY ( "County ") and the NORTH CAROLINA DEPARTMENT OF
PUBLIC SAFETY'S DIVISION OF EMERGENCY MANAGEMENT ( "NCEM "), through
its program management partner NORTH CAROLINA OFFICE OF STATE BUDGET &
MANAGEMENT — DISASTER RECOVERY SECTION ( "OSBM -DR "), for Florence
Disaster Recovery Act ( "DRA ") of 2018 (S.L. 2017 -136) grant assistance (hereinafter the
"MOA" or "Agreement "). The intent of this MOA is to: provide greater flexibility in
expediting and completing the projects identified by the County to benefit its residents; reduce
the administrative burden on the County in managing the projects and complying with the
requirements of the grant; and to advise the County that OSBM -DR will provide any technical
assistance needed by the County and any of its contractors in completing Hurricane Florence
related housing recovery projects.
WITNES SETH:
WHEREAS, Governor Roy Cooper (the "Governor ") issued Executive Order No. 51 on
September 7, 2018, which declared a State of Emergency as defined in N.C. Gen. Stat. § 166A-
19.3(19) for the entire State of North Carolina (the "State "), to provide for the health, safety, and
welfare of residents and visitors in the path of Hurricane Florence;
WHEREAS, on or about September 14, 2018, the President of the United States, Donald J.
Trump, declared that a major disaster existed in North Carolina and ordered federal aid to
supplement State, Tribal, and local recovery efforts in the areas affected by Hurricane Florence
beginning on September 7, 2018, more specifically identified in FEMA- 4393 -DR (North
Carolina Disaster Declaration);
WHEREAS, New Hanover County (hereinafter the "County ") was one of the Counties
included in the Hurricane Florence federal disaster declaration, because many public
buildings and homes, business, buildings, facilities, and personal property owned or rented
by residents in the County were destroyed or damaged by winds and/or floodwaters
associated with Hurricane Florence (hereinafter collectively referred to as the "storm
survivors "); and
WHEREAS, the North Carolina General Assembly passed the 2018 Hurricane Florence Disaster
Recovery Act (S.L. 2018 -136) requiring the executive branch to develop, implement and fund
disaster assistance programs to meet the housing recovery and support needs of individuals in
the Counties impacted by Hurricane Florence ( "HF- DRA18 ");
NOW THEREFORE, in consideration of the mutual promises contained herein, the County and
OSBM -DR agree as follows:
I. SCOPE OF SERVICES: Pursuant to (S.L. 2018 -136), the County may use MOA
grants funds for the following housing - related activities:
a) Repair or rehabilitation of owner- occupied housing.
b) Housing elevation, buyout and acquisition activities that can mitigate future flood
damage, and mitigation reconstruction for homes who have not received an
active award through the FEMA Hazard Mitigation Grant Program.
C) State Acquisition Relocation funds, which enable homeowners to purchase
homes outside the floodplain primarily in the County.
d) Flood insurance subsidies.
e) Temporary housing, rental, storage and/or moving assistance that may be needed
by storm victims during the reconstruction, rehabilitation and /or replacement of
their homes and, in which, the victims received no or limited assistance from
FEMA or non -profit organization for such assistance.
f) Project delivery and grant administration. The County may set aside 10% of the
grant award for project management, engineering, construction management,
appraisals, title opinions, legal fees for closing acquisitions, applicant screening
and related administrative or project delivery costs. The County can choose to
utilize internal staff or secure external contractors or consultants who have
expertise in disaster recovery housing assistance.
II. APPLICANT HOUSEHOLD INCOME ELIGIBILITY REQUIREMENTS
The County shall use a uniform homeowner application form provided by OSBM -DR, MOA is
hereby amended to clarify that the LMI requirement only applies to the scope of service
activities described above and as further addressed in the State DRA Eligibility Criteria Table
below. For all other activities that have no LMI requirement, households may be eligible for
assistance if the household income does not exceed $84,260 for a single or multi - person
household' in the following table:
' The AMI calculation was based on the Johnston County's AMI calculations, because it was the county in the
Hurricane Florence declared disaster area with the highest AMI.
Income
.Number of household
family members or full -
time occupants that
exceed 18 t ears of &Le:
)ant household
Two or more - person
household.
uirements Table
Annual Income can be
no greater than
$84,300
$84,300
This new guidance shall apply to new county program applicants, new projects that are added to
the County's grant by OSBM -DR, or former applicants whose projects are reconsidered if
County has remaining grant funds after completion of the currently approved projects.
STATE HF -DRA 2018 ELIGIBILITY CRITERIA
(* Denotes a limitation that may be exceed if County obtains prior approval from OSBM -DR)
1. For repair or reconstruction
of owner - occupied low- to
moderate- income housing.
SL 2018 -136 Provisions
A. Criteria for Sinnle- Family Home Repairs
iRehabilitation): Damage total should be
less than 51% of home's pre- disaster
market or tax value for the home to be
eligible for rehabilitation. * The grant
amount for a rehabilitation project, per
household, may not exceed $85,000.
B. Criteria for Single- Famil• Home Repairs
(Reconstruction): Damages should be equal
to or over 51% of home's pre- disaster
market or tax value for the home to be
eligible for reconstruction. The grant
amount for a reconstruction project may
not exceed $127 per square foot* or may
not exceed a total cost of $170,000. *
C. Reimbursement Criteria for Single- Family
Home Repairs: Out -of- pocket expenses
incurred within three years of October 8,
2016, to clean and repair their homes prior
to applying to the Homeowner Recovery
Program. Must have receipts that are
verified by inspections and program staff
and that exceed funding provided by
FEMA. SBA, private insurance, or other
i. CDBG -DR denial letter; or,
ii. DRA application dated and signed before
the State of North Carolina has started the
process for receiving and reviewing
CDBG -DR applications' or
iii. OSBM -DR or it is deleted assignee has
provided a written exception based on the
applicant families current housing
condition presents a serious and imminent
danger to the occupants' public health and
safety
iv. 2018 family income must fall within the
applicable LMI income limits as noted
above.
V. OSBM -DR has the discretion to waive
any eligibility requirements in cases
where continued occupancy of the home:
creates a threat to life safety; occupants
will be living in unsafe or unsanitary
conditions, and/or the occupants will be
exposed to health hazards that have not
been properly abated.
STATE HF -DRA 2018 ELIGIBILITY CRITERIA
(continued)
Property Eligibility Criteria Household Eligibility Criteria
1. For repair or reconstruction
of owner- occupied low- to
moderate - income housing.
charitable organizations. Reimbursement
grants may not exceed $30,000.
D. Reimbursement Criteria for Manufactured
Home Repairs: Damages should be equal
to or less than 50% of its pre- disaster
market or tax value. The manufactured
home must have a minimum unmet need of
at least $1,000. Reimbursement grants
may not exceed $30,000. *
E. Repair Criteria for Manufactured Home
(Rehabilitation l: Damages should be equal
to or less than 50% of its pre- disaster
market or tax value. * The manufactured
home must have a minimum unmet need of
at least $1,000. Through inspection it must
be determined that after repairs, the home
must be decent, safe, and sanitary. Repair
grants may not exceed $90 per square foot
or must not exceed a total of $37,500.
F. Replacement of Manufactured Home:
Damages should be over 50% of the
market or tax value. * The replacement
costs for a manufactured home shall not
exceed $65,000* for a single -wide unit and
$90,000 for a double -wide unit.
Replacement grants may not exceed $90.00
per square foot in replacement costs. *
G. Elevations: The damage to the home must
be equal to or exceed 50% of the home's
pre - disaster market or tax value and
reconstruction (or major rehabilitation in
cases where homeowner does not elect
reconstruction and repair costs do not
exceed the cost to reconstruct the home)
may include engineering and construction
costs to elevate the home or manufactured
home to at least two (2) feet above Base
Flood Elevations (BFE) or the minimum
elevation requirement defined and required
by the County, whichever imposes the
highest elevation. Notwithstanding the
floodplain mapping for the County and any
State or County elevation requirement, the
SL 2018 -136 Provisions
1. For repair or reconstruction
of owner- occupied low- to
moderate - income housing.
STATE HF -DRA 2018 ELIGIBILITY
(continued)
Property Eligibility Criteria
G. (Continued)
home should be elevated at least two (2)
feet above the highest flood level
experienced at the home during Hurricane
Matthew, Hurricane Florence and/or other
recent flood event, which must also exceed
the State or County minimum elevation
requirement. OSBM -DR and/or County
reserve the right to offer to the homeowner
the option to buyout the property, if the
elevations cost will significant exceed the
value of the home.
A probable cost estimate for the elevation
must be prepared by a licensed engineer,
licensed general contractor, licensed
elevation subcontractor, or such other
business or individual experienced in
construction estimating. The County must
share the cost estimate with OSBM -DR
before final approval. * If OSBM -DR
prepares the cost estimate for an elevation,
OSBM -DR will share the cost estimate
with the County.
Before procuring a contractor to
rehabilitate and elevate an existing home,
the County must obtain a written opinion of
assessment as to the proposed elevation of
the home by a NC licensed engineer or an
NC licensed contractor specializing in
building elevations, which takes into
consideration the condition of the property,
structural members, proposed means and
methods for elevating the structure, risks of
additional damage, and safety during the
elevation of the home.
STATE HF -DRA 2018 ELIGIBILITY CRITERIA
(continued)
SL 2018 -136 Provisions Propert, Eligibili(y Criteria
2. To. be used for housing "Elevation Criteria (Sim,ele Family): Same
elevation, acquisition, and criteria as DRA Activity 1.G
mitigation reconstruction.
3. To provide State
Acquisition Relocation
Funds ( "SARF "), which
enable low- to moderate -
income homeowners to
purchase homes outside the
special flood hazard area.
Acquisition Criteria ( Sins le Family }: Any
buyout or "acquisition" home must be located
in a flood -prone area, elevation is not a feasible
option for the property, and/or the acquisition
of the structure would minimize flood risks or
support storm water mitigation.
Criteria for Single - Family Mitigation
Reconstruction: Same criteria as DRA
Activities 1.13 (single - family homes) and 1.F
(manufactured homes).
Provides a gap payment that would not exceed
$50,000 to relocate from current damaged
home to similar housing unit outside of the
special flood hazard area. Payment could be a
difference payment not covered by CDBG -DR
or other federal programs. In addition, to the
gap payment, the County may also provide
applicants with up to an additional $5,000 in
moving costs.
The replacement home must be located within
the County in order for homeowner to receive
the maximum SARF assistance, unless an
urgent or pressing need exists to waive this
requirement. The replacement home must be
determined to be decent, safe, and sanitary.
FEMA, NCEM, or County denial letter
or written documentation that outlines
reasoning that the applicant is not
eligible for FEMA HMGP assistance.
or
Documentation that the homeowner
missed the FEMA HMGP application
deadline.
ii. North Carolina DRA Policy does not
include family income limits consistent
with Federal HMGP policies.
The maximum fair market appraised
value of homes considered for
acquisition may not exceed $276,000
household and property.
DRA 17 funds may only be used to assist LMI
households as described in the Income
Eligibility Requirements Table above.
"General Note: Any exception to any of the eligibility limitation or cost limitation will be handled on a case -by -case basis by
OSBM -DR and must be supported by any of the following: an urgent and pressing need; an emergency that threatens the life,
safety or health of the occupants of a home; all the bids from a competitive solicitation exceeded the applicable cost limitation
or lack of competition; increased financial burden or hardship to homeowner(s) (e.g., increased tax burden if home is
reconstructed instead of rehabilitated); accessibility (ADA) construction needs, issues or requirements; lack of temporary
housing in the area; or such other circumstances, events, issues or needs that may require an exception to any eligibility
limitation. With respect to the unit costs and not to exceed levels, OSBM reserves the right to notify the county of allowed
increases to these unit costs, as the market for construction related goods and services incurs increases in costs associated with
inflation or market -based increases in pricing.
III. LIMITATIONS ON THE USE OF FUNDS: The following limitations on the use of
funds apply:
a) Limited Activities: No funds provided under this MOA may be used for activities
that are not listed in Section II above.
b) Proposal Submission: County is required to submit a plan or proposal to OSBM -DR
for the proposed projects and/or households consistent with the terms of this grant.
After OSBM -DR approval of County's plan or proposal, OSBM -DR may request
copies of County's contracts, invoices and/or records of payments for any of
County's contractors providing services and construction for County under this
grant.
The County must submit amended plan or proposal for the use of funds, which must
be approved by OBSM -DR before the County begins work on the new activity or
new project and /or before it seeks reimbursement for any costs associated with the
new activity or project under this MOA. The amended plan or proposal shall
include, at a minimum, the following: (i) the specific tasks to be performed; (ii) the
identity of the County entity or contractor who will provide the work and/or
materials; (iii) costs for each task to be performed; and (iv) the estimated time to
perform the work.
c) Eligibility Limitations: In determining homeowner eligibility, the County will
provide OSBM -DR with a critical needs listing of the most pressing homeowner
hardship cases that are in need of immediate housing recovery services. These
critical needs cases should focus on the elderly, disabled, lower income, potential
failures of current dwellings, and related public health, safety and welfare
considerations. OSBM -DR and the County will prioritize the use of grant funds to
assist homeowners facing exigent conditions in a home that risk the life safety,
health, and well -being of the home occupants. OSBM -DR working in collaboration
with the County, will also undertake reasonable best efforts to ensure potential
federal housing recovery sources are provided due consideration, and /or that OSBM-
DR or the County will administer this grant program in a manner that may support
federal housing program reimbursements of state DRA disbursements. Should the
administration of these state DRA funds, to the extent practicable, create a material
conflict with a homeowner's eligibility for funding under other federal disaster
recovery programs, the County or OSBM -DR must document the exigent
circumstances that warrant immediate support and utilization of state DRA funding
supported by this Agreement. An example of material best efforts to prioritize
federal funding recover support include but are not limited to: an analysis or status
assessment of the homeowner's eligibility for Community Development Block Grant
Disaster Recovery Program (CDBG -DR) housing recovery assistance and/or likely
eligibility for FEMA HMGP assistance).
d) 100 -Year Floodplain Limitations: No funds provided under this MOA maybe
expended for the construction of any new residence within the 100 -year floodplain
unless the construction is in an area regulated by a unit of local government pursuant
to a floodplain management ordinance and the construction complies with the
ordinance. As used in this provision, "100 -year floodplain" means any area subject
to inundation by a 100 -year flood, as indicated on the most recent Flood Insurance
Rate Map prepared by the Federal Emergency Management Agency under the
National Flood Insurance Program.
e) Flood Insurance: Homeowners in the 100 -year floodplain who receive homeowner's
housing assistance pursuant to this MOA shall be required to acquire and maintain
flood insurance, and shall execute a Declaration of Covenant, Conditions and
Restrictions ( "Covenant ") that requires the damaged property to be insured by flood
insurance for the life of the home. The Covenant will be executed at Grant Closing,
recorded with the County Register of Deeds and shall encumber the property in
perpetuity. Any homeowner in the 100 -year floodplain who receives assistance
through this MOA shall be prohibited from receiving state assistance for future flood
events if that homeowner fails to maintain flood insurance after receiving assistance
through this MOA. Such homeowners must be notified of this requirement when
receiving assistance through this MOA. North Carolina will follow federal HUD
guidance to ensure all structures meet guidelines spelled out in 24 C.F.R. Part 55.
f) Floodplain Status & Insurance: No funds may be obligated or expended in any
project activity until the County provides OSBM -DR with a certification that the
project is not in a floodplain, or with certification that the recipient participates in the
flood insurance program. All properties assisted in the project shall comply with
applicable floodplain regulations. Counties may opt to provide flood insurance —at
grant closing for reimbursements or at project closeout for repairs, reconstructions,
and replacements —for a period not to exceed two years. Thereafter, all properties
assisted with funding under this Agreement must maintain insurance coverage.
g) Insurance Subrogation: If a person's home is repaired, reconstructed or relocated
with funds from the state - funded Hazard Mitigation Grant Program or the State
Acquisition and Relocation Fund, the applicant receiving the state assistance shall
authorize and approve that the State Emergency Response and Disaster Relief Fund
be subrogated to the person's rights to secure insurance coverage for the damage to
the home and any monies received from the insurance coverage shall be paid to the
State Emergency Response and Disaster Relief Fund. NCEM and grantee shall
ensure that those homeowners or applicants potentially affected by this section are
notified of, and adhere to, its requirements.
h) Property Type Limitations: Only the following types of real property may be
rehabilitated under this MOA: wood -frame built homes, manufactured homes, and
modular housing. Although rehabilitation is the primary objective for funding, if the
County determines that rehabilitation is not feasible, then complete reconstruction or
demolition and relocation are acceptable options. If a home is within a 100 -year
floodplain, 500 -year floodplain, or experienced flooding in the floor of occupied
living space if the home was outside either of the two foregoing floodplains, the
County and/or OSBM -DR reserve the right to offer the homeowner a buyout of the
property in lieu of reconstruction, rehabilitation or elevation, especially when the
costs of the proposed housing assistance greatly exceed the value of the subject home
and /or replacement of affordable housing in the County is not a priority unmet need
for the County.
i) Similar Size and Function: For homes that are reconstructed or replaced, they shall
be reconstructed or replaced with models of substantially similar size, construction
and function (e.g., manufactured home for manufactured home, modular home for
modular home, wood -frame construction for wood -frame construction, etc.).
Repairs, reconstruction, and replacement shall be substantially similar in scope, size,
and function to the original damaged property. Notwithstanding the foregoing, the
County and OSBM -DR have the flexibility and discretion to work with homeowners
to provide a reconstruction or replacement that best serves the needs of the
homeowner and/or the DRA/HM program subject to the eligibility criteria and
limitations above.
The County and/or OSBM -DR may offer different reconstruction or rehabilitation
options to homeowners to: address exigent conditions in a home that threaten life
safety, health, and well -being of the occupants; financial hardship of the homeowner;
or such other unmet need of the County related to the replacement of housing within
the County on a case -by -case basis. Subject to availability and
construction/production scheduling, the County and/or OSBM -DR may provide
eligible homeowners an option to select: a modular home to replace wood -frame
constructed home; select a home plan that is smaller size or different room
configuration than the home being reconstructed; or select a manufactured home in
lieu of wood -frame or modular construction; or other alternative that the homeowner
may agree to.
j) Aaguisition Buyout Deed Restrictions: For homes that are approved for a buyout or
acquisition, any land purchased with DRA funds must be deed - restricted to restrict
future use, in perpetuity to: open space; parks; recreation; and/or floodplain or
wetlands management. If the County takes ownership of the land, the deed
restrictions still apply.
k) Applicant Equity to Other Recovery Programs: The homeowner or applicant who
applies to the County or NCEM/OSBM -DR for benefits under this Agreement
should not receive benefits or compensation that would materially exceed benefits
that are provided for similar activities by other federal Housing Recovery Programs.
Any exceptions to these limitations will be handled on a case -by -case basis and must
be supported by a compelling justification.
IV. COMPENSATION: NCEM /OSBM -DR will provide the County $2,000,000 under this
MOA. The entirety of the MOA amount is a grant to the County by NCEM. The County
may, in its discretion, elect to revert the funds to the State to implement some or all of the
activities of the program on the County's behalf. If the County retains the grant funds,
the County will submit quarterly reports to document the use of the funds expended in the
prior three -month period. A final report documenting the use of all funds under this
MOA must be submitted to OSBM -DR no later than June 31, 2021. If the term of the
Agreement is extended, the County's reporting requirements shall likewise be extended.
Any funds not expended by December 31, 2021 are subject to the claw -back provisions
of Paragraph VI below.
V. REIMBURSEMENT: All cost must be verified through receipts and other documents.
Payment shall be submitted to the County after receipt of completed and documented
invoices, within 15 business days after receipt of invoices. Cost reports and invoices
shall be submitted to the following program manager for the NCEM:
North Carolina Office of State Budget and Management - Disaster Recovery Section
Office of State Budget and Management
430 N. Salisbury Street, Room 2028
MSC 20320 — Raleigh, NC 27699 -0320
Raleigh, NC 27603
The County must include an original, signed copy of each cost report.
VI. CLAW -BACK: NCEM or OSBM -DR reserves the right to recover grant funds or de-
obligate any remaining grant funds after this Agreement's expiration date or before the
expiration date of this Agreement, should the County be found in noncompliance with
any material term of this Agreement; an audit finding discloses an improper use of grant
funds; or it becomes apparent that the County will not be able to expend the funds prior
to the expiration date of this Agreement. OBSM -DR will provide the County with
reasonable notice of any deficiency, audit finding, or noncompliance issue and OSBM-
DR will make every effort to work with the County to resolve the issue informally before
seeking a claw -back under this provision.
VII. REGULATION: The funds awarded under this Agreement must be used in compliance
with all applicable state and federal laws governing their use. By accepting this payment,
the below official agrees to use these funds in a manner consistent with state laws and
regulations.
VIII. TAXES: The County shall be responsible for all taxes.
IX. WARRANTY: The County will hold NCEM and OSBM -DR harmless for any liability
and personal injury that may occur from or in connection with the performance of this
Agreement to the extent permitted by the North Carolina Tort Claims Act. Nothing in
this Agreement, express or implied, is intended to confer on any other person any rights
or remedies in or by reason of this Agreement. This Agreement does not give any person
or entity other than the parties hereto any legal or equitable claim, right or remedy. This
Agreement is intended for the sole and exclusive benefit of the parties hereto. This
Agreement is not made for the benefit of any third person or persons. No third party may
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enforce any part of this Agreement or shall have any rights hereunder. This Agreement
does not create, and shall not be construed as creating, any rights enforceable by any
person not a party to this Agreement. Nothing herein shall be construed as a waiver of
the sovereign immunity of the State of North Carolina.
X. POINTS OF CONTACT: To provide consistent and effective communication between
the NCEM and the County, each party shall appoint a Principal Representative(s) to serve
as its central point of contact responsible for coordinating and implementing this MOA.
For the OSBM
IF DELIVERED BY US POSTAL
IF DELIVERED BY ANY OTHER
SERVICE
MEANS
Stephanie Alsay, Business Officer
Stephanie Alsay, Business Officer
Office of State Budget and Management
Office of State Budget and Management
430 N. Salisbury Street
430 N. Salisbury Street
MSC 20320 — Raleigh, NC 27699 -0320
MSC 20320 — Raleigh, NC 27699 -0320
Raleigh, NC 27603
Raleigh, NC 27603
Direct: 919- 807 -4672
Direct: 919- 807 -4672
Email: stejjhanie.alsay(iwsbm.nc.gov
Email: st hanie.alsa Cry osbm.nc.,ov
For the COUNTY
IF DELIVERED BY US POSTAL
IF DELIVERED BY ANY OTHER
SERVICE
MEANS
Elizabeth Schrader, Chief Strategy
Elizabeth Schrader, Chief Strategy
Officer and Recovery Manager
Officer and Recovery Manager
Office of Strategy
Office of Strategy
230 Government Center Drive, Suite 191
230 Government Center Drive, Suite 191
Wilmington, NC 28403 -1732
Wilmington, NC 28403 -1732
Direct: 910- 798 -7491
Direct: 910- 798 -7491
Email: bschrader(&- nhcjzov.com
Email: bcchrader 0. nhca3ov.com
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XI. PUBLIC RECORD ACCESS: This Agreement is be subject to the North Carolina
Public Records Act, Chapter 132 of the North Carolina General Statutes.
XII. AUDITING & ACCESS TO PERSONS AND RECORDS: In accordance with N.C.
Gen. Stat. § 147 -64.7, the staff from the North Carolina Office of State Auditor, DPS,
NCEM, Office of State Budget and Management, or other applicable state agency
internal auditors shall have access to County officers, employees, agents and/or other
persons in control of and/or responsible for the records that relate to this Agreement for
purposes of conducting audits and independent evaluations. These parties shall also have
the right to access and copy any and all records relating to the Agreement during the term
of the Contract and within two years following the completion of project close -out, to
verify accounts, accuracy, information, calculations and /or data affecting and/or relating
to payments, requests for change orders, change orders, claims for extra work, requests
for time extensions and related claims for delay /extended general conditions costs, claims
for lost productivity, claims for loss efficiency, claims for idle equipment or labor, claims
for price /cost escalation, pass - through claims of subcontractors and/or suppliers, and/or
any other type of claim for payment or damages from NCEM and/or OSBM -DR, or
associated state parties and affected homeowners.
The County shall store and maintain the original files related to this Agreement and
accounting records for the grant funds pursuant to the County's document retention
policies or six years from the closeout of the last DRA or HM project, whichever is later.
XIII. SITUS: This Agreement shall be governed by the laws of North Carolina and any claim
for breach or enforcement shall be filed in state court in Wake County, North Carolina.
XIV. ANTITRUST LAWS: This Agreement is entered into in compliance with all State and
Federal antitrust laws.
XV. OTHER PROVISIONS /SEVERABILITY: Nothing in this Agreement is intended to
conflict with current laws or regulations of the State of North Carolina, Department of
Public Safety, North Carolina Emergency Management, or the County. If a term of this
Agreement is inconsistent with such authority, then that term shall be invalid, but the
remaining terms and conditions of this Agreement shall remain in full force and effect.
XVI. COMPLIANCE: The County shall be wholly responsible for financing to be made
under this MOA and for the supervision of its employees and assistants. The County
shall be responsible for compliance with all laws, ordinances, codes, rules, regulations,
licensing requirements and other regulatory matters that are applicable to the conduct of
its business and purchase requirements performed under this MOA. Recipient is
reminded that all funds are subject to the requirements of the Local Government Budget
and Fiscal Control act, including but not limited to all budgeting and pre -audit
requirements.
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XVII. MODIFICATION: This Agreement may be amended only by written amendments duly
executed by the Director of OSBM -DR and the County Manager. Notwithstanding the
foregoing, the formal modification of this Agreement shall not be required for the
following: changes in grant funding; changes in grant monitoring and compliance;
changes in the scope of work for any projects; changes in the type of recovery for a
project (e.g., rehabilitation to reconstruction, etc.); changes in the number of projects;
changes in auditing requirements; and /or such other matters that County and OSBM -DR
may agree to during the term of this grant. OSBM -DR will give advance notice of all
changes to the County, and any change that may reduce the amount of the grant to the
County shall be subject to agreement and acceptance by the County formally or
informally as required by County policy.
XVIII. TERMINATION: The terms of this Agreement, as modified with the consent of all
parties, will remain in effect until December 31, 2021. Upon written request for a term
extension by the County to OSBM -DR, this agreement may be extended for one
additional year.
County or OSBM -DR may terminate this Agreement, in whole or in part, by providing
written notice to the other party at least 30 days before the effective date of termination
set forth in the notice. After the issuance of any written notice of termination, the County
within the 30 -day period shall provide an account of all pending payment obligations to
its contractors managing projects, constructing projects, and /or working on mitigation
buyouts as well as an account for all bills that may become due within 30 days following
termination. NCEM or OSBM -DR may require County to return of unspent funds that
will not be needed to pay County's obligations that are due prior to the effective date of
termination. County will forward all invoices it receives from its contractors to OSBM-
DR after the effective date of termination, which OSBM -DR will process and pay all
eligible bills, costs, fees and /or expenses. NCEM or OSBM -DR shall have the right to
assume all County's projects and contracts so that all DRA and HM projects that were
not completed by the County may be completed by OSBM -DR. The County agrees to
execute all necessary documents to assign its contracts and projects to NCEM/OSBM -DR
and make reasonable efforts to have its contractors agree to the requested assignments.
The County may also delegate or assign to OBSM -DR any project to manage, construct
or buy -out without seeking termination of the Agreement.
XIX. EXECUTION AND EFFECTIVE DATE: This Agreement shall become effective
upon return of this amended Memorandum of Agreement, properly executed on behalf of
the County, to OSBM -DR and will become binding upon execution of all parties to the
Agreement. Once executed, the terms of this Agreement will be made effective as of
December 1, 2018.
XX. ENTIRE AGREEMENT: This Agreement and any annexes, exhibits and amendments
annexed hereto and any documents incorporated specifically by reference represent the
entire Agreement between the parties and supersede all prior oral and written statements
or agreements.
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IN WITNESS WHEREOF, the parties have each executed this Agreement and the parties agree that
the effective date of this Agreement shall be October 31St, 2019.
NC OFFICE OF STATE BUDGET
& MANAGEMENT
BY:
Nels C. Roseland `
Deputy State Budget Director
DATE G `, , v 0
COUNTY OF NEW HANOVER
BY:
Q ou A
ww?
Chris oudriet
County Manager
DATE 1 %5 1 t0A
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