Attachment 4 - Direct Lease Contract Terms and Conditions.pdf

Attachment 4

Direct Lease Contract Terms and Conditions

I. General Terms and Conditions

The following terms and conditions contained in this document will be used by the Contracting Officer in consultation with the Individual Assistance program during the acquisition process to acquire rental units for the purpose of implementing Direct Lease.

1. Purpose

The Federal Emergency Management Agency (FEMA), Recovery Directorate, Individual Assistance Division enters into a contract to lease existing rental housing units for use as temporary housing assistance as authorized under Sections 408(c)(1)(B)(i) and 502(a)(6) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (Stafford Act). Once acquired, units will be used by FEMA to temporarily house displaced disaster applicants whom are eligible to receive temporary housing under specified declaration. Under the terms and conditions of the contract, the costs for any modifications or improvements to make the units accessible for applicants with access and functional needs will be factored into the contract.

2. Parties

The parties to this contract are the Department of Homeland Security/Federal Emergency Management Agency (FEMA) and [INSERT THE OWNER’S, AGENT’S OR PROPERTY MANAGER’S NAME] (hereinafter referred to as “Owner”).

3. Rental Unit

This contract pertains to the property located at [INSERT PROPERTY ADDRESS] and the rental unit (hereinafter “unit”): [INSERT UNIT NUMBERS];

4. Individual or Household

This contract pertains to the FEMA eligible individuals or households (hereinafter “Applicants”) who may reside in the unit as determined by FEMA. Other persons may not be added to the household without prior written approval of FEMA and the Owner.

5. Contract Term

The term of this contract will be for [INSERT NUMBER OF MONTHS] commencing on the [INSERT DATE] day of [INSERT MONTH AND YEAR] and ending on [INSERT DATE] day of [INSERT MONTH AND YEAR].

II. Rental Unit Accessibility Modification or Improvement Terms and Conditions

1. Rental Unit Accessibility Modification or Improvement

FEMA may authorize modifications or improvements to make the units accessible and suitable for use by Applicants with access and functional needs pursuant to Section 408(c)(1)(B)(i) and

502(a)(6) of the Stafford Act. If accessibility modifications or improvements are made to the unit, following terms and conditions will apply.

a. Performance under this contract will include modification or improvement of [INSERT NUMBER OF UNITS] identified as [INSERT UNIT NUMBER/ADDRESS/LOCATION OF UNITS] for eligible disaster Applicants identified by FEMA.

b. FEMA will determine the cost of the modifications and improvements by performing an independent government cost estimate (IGCE). If FEMA receives an estimate from a building contractor, the estimate will be compared to the IGCE for comparison.

c. Modifications and improvements will be in compliance with Disabilities Act Accessibility Standards (ADAAG) and building codes and standards, along with Environmental and Historic Preservation local, state, and Federal statutes and regulations.

d. The Owner will have the option of making the modifications and improvements or allowing FEMA to make the modifications and improvements for a negotiated fixed priced.

e. If the Owner opts to make the modifications and improvements:

i. The Owner will develop and submit a work plan to FEMA for review and approval, prior to performing the work. The work plan will establish milestones for completion of the work and will be attached to the Direct Lease Contract.

ii. The Owner will acquire all necessary building permits, including those required by Federal, state or local codes, statutes or ordinances.

iii. The Owner will coordinate site visits by FEMA and/or its designee to review and accept all modifications or improvements to the unit(s). There also may be a need for an Environmental and Historic Preservation review. Within [X] calendar days of notification of completion of each milestone established under the approved work plan, FEMA and/or its designee will inspect and accept the work, or request any adjustments in the work that may be necessary to meet accessibility standards.

iv. FEMA and/or its designee will perform a final site visit within [insert number of days] calendar days prior to occupancy of the FEMA applicant, to accept units for occupancy. FEMA contracting will ensure that there is compliance with the agreed up modifications and improvements with ADAAG regulations and may require that the Owner must provide proof of compliance. The Owner must maintain the property to these standards during the term of this contract.

f. Any FEMA directed additional modifications or improvements will not be made without a written contract between FEMA and the Owner, and must be approved by a FEMA Contracting Officer. The cost of any additional modifications or improvements will be evaluated by FEMA and factored into the Direct Lease Contract.

g. Units undergoing modifications or improvements will be available for occupancy and quiet enjoyment by Applicants identified by FEMA no later than [INSERT DATE].

2. Payment for Costs of Accessibility Modifications or Improvements

a. If FEMA makes the modifications or improvements, the costs will be factored into the Direct Lease Contract.

b. If the Owner makes the modifications or improvements, FEMA will pay a negotiated fixed amount for the costs.

c. Payments for modifications or improvements will be made based on the work plan agreed upon between FEMA and the Owner. The work plan for modifications or improvements will be attached to the Direct Lease Contract.

d. FEMA shall not make a payment for modifications or improvements if the modifications or improvements do not meet the Federal Americans with Disabilities Act Accessibility Standards (ADAAG) and occupancy regulations. After the Owner corrects the defect within the period of time specified by FEMA, and FEMA verifies the correction, FEMA may make a payment.

III. FEMA Use of the Rental Unit Terms and Conditions

1. Rental Unit Requirements

a. The Owner will ensure units are available to rent at the time the Direct Lease Contract is executed.

b. The Owner will ensure the units are ready for occupancy within 3 days of the date the Direct Lease Contract is executed, unless the unit requires modifications or improvements to accommodate an Applicant or household with access and functional needs.

c. The Owner will ensure the rental property and units comply with Housing Quality Standards (HQS) established by the U.S. Department of Housing and Urban Development (HUD), and all utilities, appliances, and other furnishings are functional.

2. FEMA Use of the Rental Unit

a. FEMA will have the exclusive use of the designated units to provide temporary housing to displaced Applicants eligible for temporary housing assistance. If modifications or improvements are made, FEMA will have the exclusive use of the designated unit upon completion of the work and acceptance of the modifications or improvements by FEMA.

b. FEMA will have the option to extend the Direct Lease Contract, if FEMA extends the period of assistance beyond 18 months.

c. FEMA will have the option of releasing the unit to the Owner and ceasing monthly payments for the unit at any time by providing 30-days’ notice to the Owner.

d. FEMA will have sole discretion to identify Applicants to occupy the rental units.

Once an Applicant is identified, FEMA will refer the Applicant to the Owner for execution of a Lease agreement for the rental unit.

e. The Owner agrees to add the Direct Lease – FEMA Lease Addendum to any Lease between the Applicant and the Owner, which contains and incorporates FEMA’s Direct Lease program conditions of eligibility and termination of tenancy and eviction.

3. Owner Certification

During the term of this contract, the Owner certifies that:

a. The Owner and the Applicant have entered into a Lease agreement for the rental unit that includes the provisions contained in the Direct Lease Contract – FEMA Lease Addendum. The Owner will not make any changes to the Lease between the Owner and the Applicant or the FEMA Lease Addendum without prior approval by FEMA.

b. The Owner will provide FEMA with an electronic copy of the Lease agreement entered into with the Applicants.

c. The Lease is consistent with state, local, and Federal law, including the Fair Housing Act.

d. The Owner will not charge the Applicant rent or security deposit during the term of the Lease agreement.

e. The Owner will not consider the Applicant’s credit history when screening the Applicant’s suitability for occupancy.

f. The Owner is not the parent, child, grandparent, grandchild, sister, or brother of the Applicant or any member of the Applicants household, unless FEMA has determined that approving rental of the unit, notwithstanding such relationship, would be consistent with FEMA eligibility criteria.

4. Maintenance, Utilities, and Other Services

a. The Owner must maintain the unit and premises in accordance with the State and local building codes and standards.

b. Property management, maintenance, and other Owner-Applicant/Landlord-Tenant relationships will remain the responsibility of the Owner.

c. The Owner will be responsible for ongoing property management operating costs, including, but not limited to, office management and staffing overhead, custodial services, waste removal, snow removal, recycling, and security of the property.

d. FEMA will pay utilities for the designated units if the utilities are normally included in the Lease. Otherwise the utilities are the responsibility of the Applicant as specified in the Lease agreement between the Owner and the Applicant.

5. Payment to Owner for Security Deposit for Units

FEMA will establish a Contract Line Item Number (CLIN) with an amount of [INSERT AMOUNT OF DAMAGE SECURITY DEPOSIT] ($[INSERT AMOUNT PER UNIT]/UNIT x NUMBER OF UNITS) as a damage security deposit. The Owner agrees to comply with state law governing the use of security deposits. The Owner will submit a claim request for repair of damage above normal wear and tear caused by the Applicant. FEMA will be permitted to inspect the unit for assessment of the damage. Once the claim is approved by FEMA or its designee, Owner will invoice for payment of repairs for damage only above normal wear and tear by referencing the contract CLIN.

6. Pet Deposits

The Applicant is responsible for paying any pet security deposit to the Owner as required by the Owner.

7. FEMA Occupancy Verification and Access to the Rental Units

a. FEMA reserves the right to verify the occupancy of the Applicant in a specific unit and Owner will ensure the Applicant Lease provides for access to designated units by FEMA within reasonable hours and upon 24-hour notice.

b. The FEMA eligibility determination process may require periodic visits by FEMA staff to a rental unit occupied by an Applicant. During the term of this contract, the Owner will provide FEMA with access to the unit to visit Applicants. FEMA will provide the Owner with advance notice when a visit is requested.

8. FEMA Termination of Applicant’s Eligibility for Direct Lease Assistance

a. Eligibility. During the term of this Lease FEMA will periodically determine the Applicant’s continued eligibility for temporary housing. In accordance with FEMA Standard Operating Procedures, FEMA may terminate an Applicant’s assistance under Direct Lease when:

i. The Applicant violates any of the terms of the FEMA Temporary Housing Agreement under Direct Lease; or

ii. The Applicant’s tenancy is terminated by the Owner for violation of the Lease agreement terms and conditions.

b. End of Direct Lease Period of Assistance. At the end of the term of this contract, FEMA may terminate Direct Lease assistance. In accordance with the Stafford Act, temporary housing assistance shall be provided for a period of up to 18 months from the date of the Presidential Declaration. Stafford Act Section 408(c)(1)(B)(iii), 42 U.S.C §5174(c)(1)(B)(iii). If necessary, because of extraordinary circumstances, FEMA may extend the 18 month period of assistance for temporary housing assistance. Any extension of Direct Lease assistance may require a modification to this contract.

9. FEMA Notice to Owner and Applicant regarding Termination of Direct Lease Assistance

a. Termination notice based on Applicant ineligibility:

i. FEMA will provide the Applicant with a Notice of Revocation and intent to collect a monthly penalty fee for a major violation with three (3) days to vacate the unit or a general violation/FEMA program ineligibility with fifteen (15) days to vacate the unit. FEMA will issue a Notice to Surrender Possession to Applicants who remain in the unit beyond the date specified in the Notice of Revocation.

ii. Upon a determination by FEMA that an Applicant’s Direct Lease assistance is terminated, FEMA will notify the Owner in writing within three (3) calendar days of the determination.

iii. When an Applicant moves out, the Owner will notify FEMA in writing within three (3) calendar days of the Applicants move-out date.

iv. If a unit becomes vacant during the term of the contract, FEMA reserves the right to place another eligible Applicant in the unit.

v. In the event FEMA notifies the Owner of the option to place a new Applicant in the unit, the Owner will make the unit ready for occupancy for a new Applicant.

b. Termination notice based on End of the Period of Assistance for Direct Lease:

i. FEMA will provide an End of Period of Assistance - 30-Day Reminder Notice to the Applicant 30 days prior to the end of the period of assistance.

ii. FEMA will provide a 30-Day End of Period of Assistance and Penalty Fee Notice of Revocation to the Applicant 30 days prior to the end of the period of assistance.

iii. FEMA will provide a 30-Day notice to the Owner of the end of the program period of assistance.

iv. At the end of the period of assistance, FEMA will release the units back to the Owner.

c. Release of Vacant Units to the Owner:

i. If a unit becomes vacant during the term of the contract and FEMA does not have another Applicant to occupy the unit, FEMA may release the unit to the Owner and cease all monthly payments for the unit.

ii. FEMA will notify the Owner of FEMA’s intent to release the unit in writing within three (3) calendar days of the determination.

iii. FEMA will give the Owner a 30-day written notification as to when the use of any particular units will be discontinued. FEMA will pay the Owner a prorated amount for the portion of the month that FEMA continues to use the rental units. The Owner may enter into a Lease to take effect the first day following the date the unit is vacated and released by FEMA.

iv. Any security deposit will not transfer with the Applicant entering a standard Lease agreement with the Owner.

10. Applicant Appeal Rights to FEMA Termination of Direct Lease Assistance

a. In accordance with Section 423 of the Stafford Act and 44 C.F.R. 206.115, Applicants may appeal the FEMA determination to terminate Direct Lease assistance within 60 days after the date that FEMA notifies the Applicant.

b. Appeals must be in writing and explain the reason for the appeal to FEMA.

c. The Applicant or Applicant’s designee must sign the appeal. If the Applicant’s designee files the appeal, then the Applicant must also submit a signed written statement giving the Applicant’s designee the authority to represent the Applicant.

d. The Applicant must vacate the unit until an appeal decision is provided by FEMA.

e. Applicants may not appeal termination based on the end of the period of assistance (18 months, unless extraordinary circumstances as determined by FEMA are present to extend).

11. Owner Termination of Tenancy and Eviction

a. The Owner may terminate the Applicant’s tenancy during the term of the Lease or any extension of the Lease for the following reasons.

i. FEMA terminates the Applicant’s Direct Lease assistance based on FEMA’s determination of ineligibility, violation of the FEMA Temporary Housing Agreement for Direct Lease, the Lease agreement or property rules and regulations, or the end of the program period of assistance.

ii. The Applicant or any member of the household, a guest, associate or other person under the Applicant’s control, provocation, or influence commits or engages in any of the following types of activity:

1. Any criminal activity that threatens the health or safety of, or the right to peaceful enjoyment of the premises by other residents (including property management, maintenance, contractor or other staff residing or working on the premises);

2. Any criminal activity that threatens the health or safety of, or the right to peaceful enjoyment of their residences by persons residing in the immediate vicinity of the premises;

3. Any violent criminal activity on or near the premises;

4. Any drug-related criminal activity on or near the premises;

5. Serious or repeated violations of the Lease;

6. Violation of Federal, State or local law; or

7. Other good cause, including disturbance of neighbors, or destruction of property.

b. The Owner is responsible for pursuing eviction based on the Applicant’s violation of the Lease agreement; FEMA’s determination of the Applicant’s ineligibility; or end of the period of assistance. FEMA will provide notice to the Owner as required under section III, paragraph nine (9) of this contract.

c. The Owner agrees to notify FEMA within three calendar days, of eviction proceedings initiated against the Applicant.

d. The Owner agrees to provide the Applicant with any required eviction notices in accordance with State and local law.

12. Nondiscrimination

The Owner must not discriminate against Occupant or eligible household members in the provision of services, or in any other manner, on the grounds of age, race, color, religion, sex, nationality, age, for disability.

13. Assignment of Contract

The Direct Lease Contract may not be assigned to a new Owner, financial institution or other party.

14. Disposition of Property

The Owner will not advertise the property for sale or sell the property during the term of the Direct Lease Contract.

15. Conflict of Interest

a. A covered individual may not have any direct or indirect interest in the Direct Lease Contract or in any benefits or payments under the Direct Lease Contract (including the interest of an immediate family member of such covered individual) while such person is a covered individual or during one year thereafter. A covered individual means a person or entity who is a member of the following classes: any present or former employee of FEMA; or any Owner, Sub-owner or agent of FEMA who formulates Policy or who influences decisions with respect to the Direct Lease program; or any public official, member of a governing body, or State or Local Legislator, who exercises functions or responsibilities with respect to the Direct Lease program.

b. Immediate family member means the spouse, parent (including stepparent), child (including a stepchild), grandparent, grandchild, sister or brother (including a stepsister or stepbrother) of any covered individual.