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HomeMy WebLinkAboutFY20 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 10 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 11 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. 12 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. 13 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 14