Statement of Work- Silvercreek Apts. 2026-2027.pdf

STATEMENT OF WORK

1. DESCRIPTION: Rural Development (RD) needs to secure the services of qualified contractors to provide management services for the following multi-family dwelling:

Property Name and Address Number of Units

Silvercreek Apartments 48 402 Meadow Drive Troy, IL 62294

2. SCOPE: Upon receipt of a contract, the Contractor shall perform services for the management of the property. The Contractor will supply the necessary labor, time, attention and effort of the Contractor’s principals and employees regularly engaged in the business of the Contractor to properly discharge the obligations of the Contractor under this contract including supervision of maintenance and operation activities.

3. DETAILED WORK REQUIREMENTS:

(a) Yard Maintenance Services.

The Contractor shall oversee the yard maintenance service as follows: Maintain grounds to present a neat well-kept appearance. Trim shrubbery as necessary and when grass reaches approximately 4” in height, cut to 2” in height. Trim grass around foundations, fences, trees, etc., as necessary, and remove all clippings in yard. During winter months, keep all public walks clean of snow and ice as would be expected by a prudent homeowner. Payment for the yard maintenance services should be made from the Operating Account by the Contractor. The USDA, Rural Development Servicing Office may inspect the work at any time.

(b) Budget.

(1) Preparation- The Contractor shall prepare an original project budget and monthly reports for submission to Rural Development for approval. Monthly reports shall be due in the Rural Development Servicing Office by the 20th day of the month immediately following the close of the respective reporting period. For each subsequent fiscal year, the Contractor shall prepare a new budget.

(2) Budget and Monthly Report Submissions- The contractor shall submit all budget and monthly reports via the “Management Interactive Network Connection” (MINC) Program. To log in to MINC, please use the following link:

https://usdaminc.sc.egov.usda.gov/default.asp

Additional Information will be provided if the contractor does not already have MINC access and needs assistance setting it up.

(3) Budget Categories- The budget shall be prepared using the format and categories of Rural Development form 3560-7, “Multiple Family Housing Project”.

(c) Rentals.

The Contractor will rent the dwelling units in the project. The following provisions will apply:

(1) The Contractor will prepare and verify eligibility certifications and recertifications in accordance with Rural Development requirements.

(2) The Contractor will prepare all dwelling leases and parking permits and will execute the same in its name which will be identified thereon as “Contractor for Rural Development”. The terms of all leases will comply with the relevant Rural Development regulations. Dwelling leases will be in a form approved by Rural Development.

(3) Rural Development will furnish the Contractor with rent and income report forms required showing rents as appropriate for dwelling units, other charges for facilities and services, and income data relevant to determinations of tenant eligibility and tenant rents. In no event will the rents and other charges be exceeded.

(4) Immediately upon award of this contract, the Contractor will ascertain that each of the current tenants is properly certified and has a current signed lease. Tenants will be certified and will execute leases as necessary or be asked to move from the complex if ineligible.

(d) Enforcement of Leases.

The Contractor will ensure full compliance by each tenant with the terms of the lease.

Voluntary compliance will be emphasized. The Contractor, using the services of local social service agencies when available, will counsel tenants and make referrals to community agencies in cases of financial hardship or other circumstances deemed appropriate by the Contractor. Involuntary termination of tenancies should be avoided to the maximum extent consistent with sound management of the project. In the case of necessary termination, the Contractor will notify the Rural Development Area Office who will initiate the action on behalf of the Government.

(e) Collection of Rents, Security Deposits, and other Receipts.

The Contractor will collect, when due, all rents, charges, and other amounts receivable including laundry income on the account in connection with the management and https://usdaminc.sc.egov.usda.gov/default.asp operation of the project. Such receipts will be deposited immediately in the project's General Operating Account to be established at a bank whose deposits are insured by an agency of the Federal Government. The Contractor will collect, deposit and disburse security deposits, if required, in compliance with any State or local laws governing tenant security deposits. Security deposits will be deposited by the Contractor in a separate account at a Federally insured institution. This account will be carried in Rural Development's name and designated on the records as “Silvercreek Apartments Security Deposit Account''.

(f) Accounting System.

The Contractor must develop a systematic method to record the business transactions of the project that appropriately reflects the complexity of project operations. The Contractor may be required to implement and use a bookkeeping and accounting system as prescribed by Rural Development. The following accounts will be established as a minimum:

(1) General Operating Account.

This account records all project income and disbursements. Excess project cash held in this account may be combined with other project funds described below in temporary (immediate call) interest bearing accounts when separate bookkeeping records are maintained by individual project accounts. This will usually be a checking account which must be maintained in a financial institution insured by the Federal Government.

(A) Deposits.

All income and revenue from the housing project shall, upon receipt, immediately be deposited in the General Operating Account. This will include rent receipts, housing subsidy payments, laundry revenue, or any other project income. The Contractor may also, at their discretion at any time, deposit therein other funds which are also to be used for purposes authorized by this section including transfer from the Reserve Account. Housing Assistance Payments received from the Department of Housing and Urban Development (HUD) and Rural Development rental assistance payments shall be deemed to be revenue derived from the operation of the project obligations.

(B) Disbursement.

Not later than the 15th of each month, out of the General Operating Account, the Contractor shall pay or fund the actual, reasonable, and necessary monthly project expenses. Current expenses may include the initial purchase and installation of furnishings and equipment with any funds deposited in the General Operating Account which are not proceeds of the loan or income or revenue from the project. Other authorized disbursements arc Rural Development approved real estate tax escrow and reserve. Any balance remaining in the General Operating Account, except as authorized above, may be retained, or transferred to the Reserve Account.

(2) Real Estate Tax Escrow Account.

Funds recorded in this account may be deposited in a separate interest-bearing account at a Federally insured financial institution. Each month after the payment of actual, reasonable, and necessary current operating and maintenance expenses, there shall be transferred from the General Operating Account to the Real Estate Tax Escrow Account an amount equal to one-twelfth of the total anticipated real estate tax for the year. Any interest earned shall be prorated based on the amount held in the escrow account at the time the interest is earned, and it shall accrue and be part of the account. Funds in the Real Estate Tax Escrow Account shall be used only as authorized by this section and until so used, shall be held by the Contractor in the trust for the Government as security for the loan obligations.

(3) Reserve Account.

Funds recorded in this account should be held in a separate interest-bearing account or accounts at a Federally insured financial institution. Required reserve installments shall be transferred to the Reserve Account at the monthly rate stipulated by the Area Office.

Monthly transfers will continue until the account reaches the total amount specified by Rural Development. Monthly transfers shall be resumed the next month following disbursement from the Reserve Account until it is restored to the specified total minimum sum. Funds in the Reserve Account shall be used only for authorized purposes as described below and, until so used, shall be held by the Contractor in trust as security for the loan obligations. Reserve Account funds not immediately needed for authorized purposes may be invested in saving certificates insured by a Federal institution or invested in readily marketable obligations of the United States Treasury Department, the earnings on which shall accrue to the reserve account. Interest earnings may be used to meet the monthly installments to the Reserve Account and/or to meet a modified and higher reserve level established periodically by a Rural Development approved amendment to the borrower's loan agreement or resolution. Such amendment may be made to build reserve for scheduled replacement of depreciable property items in addition to general reserve requirements. Any amount in the reserve account which exceeds the total sum specified in the loan agreement or resolution maybe transferred to the General Operating Account for the authorized purposes only when it is agreed to by Rural Development to be in excess of the requirement. However, the Rural Development Specialist may direct the excess sum to be retained in the Reserve Account when determined necessary to protect the Government's security interest. With prior consent of the Government, funds in the Reserve Account may be used by the Contractor for the following purposes.

(A) To pay costs of repairs or replacements to the housing, furnishings or equipment caused by catastrophe or long-range depreciation which are not current expenses. Withdrawals for approved purposes should be approved in advance during the annual budget approval process.

(B) To make improvements to the housing project without creating new living units.

(C) For other purposes desired, which in the judgment of the Government will promote the loan purposes, strengthen the security, or facilitate, improve, or maintain the orderly collectability of the loan without jeopardizing the loan or impairing the adequacy of the security.

(4) Tenant Security Deposit Account (When Applicable).

Upon receipt, all tenant security deposit funds collected shall be deposited in a separate account at a Federally insured financial institution and shall be handled according to any State or local laws governing tenant security deposits. All tenant security deposit funds collected shall be recorded in a bookkeeping account that is separate from the project bookkeeping accounts. Funds in the Tenant Security Deposit Account shall only be used for authorized purposes as intended and represented by the project management plan. They shall be held by the Contractor in trust for the respective tenants until so used. Any amount in the Tenant Security Deposit Account which is retained by the Contractor as a result of lease violations, shall be transferred to the General Operating Account and treated as income of the housing. In no case wil1 interest earned on security deposits accrue to the Contractor. Any interest earned but not returned to the tenants will accrue to the project's General Operating Account for disposition as outlined in the management plan.

(g) Maintenance and Repair.

The Contractor will maintain and oversee the repair of the project in accordance with this Statement of Work and with local codes and keep it in a condition acceptable to Rural Development at all times. This will include, but is not limited to, cleaning, painting, decorating, plumbing, carpentry, grounds care, energy conservation measures and practices, and such other maintenance repair work as may be necessary, subject to any limitations imposed by Rural Development in addition to those continued herein. At any time when repairs or purchases cost over $500.00, the Contractor will obtain the concurrence of the USDA, Rural Development Servicing Office prior to commencing with such repairs.

Incident thereto, the following provisions apply:

(1) Subject to the Rural Development's prior written approval, the Contractor may contract with a qualified third party to do weekly cleaning, vacuuming and trash removal of common areas and collecting and accounting of 1aundry income.

(2) Special attention will be given to preventive maintenance and, to the greatest extent feasible, the services of regular maintenance employees will be used.

(3) Subject to the Rural Development's prior written approval, the Contractor may contract with qualified independent contractors for repairs beyond the capability of regular maintenance employees such as repair of air-conditioning systems, heating systems and the changing of locks.

(4) The contractor will systematically receive and promptly investigate all service requests from tenants, take such action as may be justified and keep records of the same.

Emergency request will be received and serviced on a twenty-four (24) hour basis.

Serious complaints will be reported to Rural Development after investigation.

(5) Notwithstanding any of the foregoing provisions, the prior written approval of Rural Development will be required for any expenditure which exceeds Five Hundred Dollars ($500.00) in any one instance for labor, materials, or otherwise in connection with the maintenance and repairs of the project. This limitation is not applicable for recurring expenses within the limits of the operating budget or emergency repairs involving manifest danger to persons or property, or that are required to avoid suspension of any necessary service to the project. In the latter event, the Contractor will inform Rural Development of the facts as promptly as possible.

(6) The Contractor will advise Rural Development of any cost-effective energy conservation measures adaptable to the project. The Contractor will encourage their use and will assist Rural Development during any installation of these measures.

(h) Utilities and Services.

The Contractor will arrange for water, electricity, gas, fuel oil, sewage and trash disposal, and vermin extermination, as necessary.

(i) Taxes. Fees and Assessments.

The Contractor shall pay all taxes, assessments, and government fees promptly when due and payable from the Real Estate Tax Escrow account. The Contractor shall also evaluate local property taxes to insure they bear a fair relationship to the project value and appeal, when appropriate.

(j) Employees.

The proposed staffing plan to be submitted with this proposal prescribes the number, qualifications, and duties of the personnel to be regularly employed in the direct management of the project, including a Site Manager, if appropriate, maintenance, bookkeeping, clerical and other managerial employees. All such personnel will be employees of the Contractor and not Rural Development, and will be hired, paid, supervised, and discharged by the Contractor. Site employee salaries will be paid by the Contractor directly. Contractor employees who work off-site or in the Contractor's office will be paid directly by the Contractor out of the management fee paid by the project.

4. REPORTS: The Contractor will furnish information (including occupancy reports) as may be requested by Rural Development and /or the Office of Inspector General from time to time with respect to the project's financial, physical, or operational condition. The Contractor will also prepare and submit the following items via MINC:

Form RD 3560-8 - “Tenant Certification"

Form RD 3560-29 - "Notice of Payment Due Report", aka Project Worksheet (Monthly)

Form RD 3560-7 - "Multiple Family Housing Project Budget", aka Monthly Actuals (Monthly)

The Contractor will complete and submit actual income and expense information by the 20th of the following month to Rural Development on Form RD 3560-7. The Contractor will complete any additional forms and data prescribed by Rural Development affecting the operation and maintenance of the project.

5. INSPECTION AND PAYMENTS

1. INSPECTION AND ACCEPTANCE

(a) The Contracting Officer or the Contracting Officer's duly authorized representative will inspect and accept the supplies and/or services to be provided under this contract.

2. PAYMENTS

The Contractor will submit monthly invoices for its services including overall management to the Contracting Officer's Representative or Contracting Officer.

Management office units will be based on a monthly amount that has been accepted and approved by Rural Development. Invoices in substantially the same format as Exhibit G will be submitted along with Form RD 3560-29 no later than the 10th day of the succeeding month. Any reimbursable expenses should be invoiced separately.

SPECIAL CONTRACT REQUIREMENTS

1. RURAL DEVELOPMENT REQUIREMENTS:

In performing its duties under this contract, the Contractor will comply with all relevant requirements of Rural Development. Rural Development requirements include preparation of forms and reports in the format of prescribed Rural Development forms and exhibits.

2. COMPLIANCE WITH ALL GOVERNMENT ORDERS:

The Contractor will take such action as may be necessary to comply promptly with any and all governmental orders or other requirements affecting the project, whether imposed by federal, state, county or municipal authority, subject, however, to any stated limitations with respect to repairs. The Contractor will notify Rural Development in writing of all notices of such orders or other requirements, within seventy-two (72) hours from the time of their receipt.

3. NONDISCRIMINATION:

In the performance of its obligations under this contract. the Contractor will comply with the provisions of any Federal, State, or local law prohibiting discrimination in housing on the grounds of race, color, religion, sex, age, marital status, national origin, or physical or mental handicap (applicant must have capacity to execute a legal contract) including Title VI of the Civil Rights Act of 1968, Executive Order 11246, and the Equal Credit Opportunity Act of 1974, as they relate to Rural Development.

4. BIDS, DISCOUNTS, REBATES, ETC.:

With prior approval of the owner, the Contractor will obtain contracts, materials, supplies, utilities, and services that are the most advantageous to the project, and is authorized to solicit bids, either formal or informal, for those items which can be obtained from more than one source. The Contractor will secure and credit to the project all discounts, rebates, or commissions obtainable with respect to purchases, service contracts, and all other transactions on the project's behalf.

5. TERMINATION:

This contract may be terminated by the mutual consent of the Principal Parties as of the end of any calendar month, provided that at least thirty (30) days advance written notice thereof with reasons given is submitted to Rural Development. This provision may be superseded by actions of the U.S. District Court. Upon termination of this contract, the Contractor will submit to Rural Development, or another designated owner as specified by Rural Development, all project books and records and any financial statements required by the Rural Development, along with any keys held by the Contractor.

6. CONTRACTOR'S INDEMNIFICATION:

Notwithstanding any provision of this contract or any obligation of Contractor hereunder, it is understood and agreed: (a) that Rural Development has assumed and will maintain its responsibility and obligation through the term of this contract for the finances and the financial stability of the project; and (b) that the Contractor shall have no obligation, responsibility, or liability to fund authorized project costs. expenses, or accounts other than those funds generated by the project itself or provided to the project or to the Contractor by Rural Development. Moreover, Rural Development hereby indemnifies the Contractor and agrees to hold it harmless with respect to project costs, expenses, accounts, liabilities, and obligations during the term of this contract and further agrees to guarantee to the Contractor the payment of its compensation under this contract during the term of this contract. The Contractor shall be liable for any loss from or injury to any property resulting solely from the Contractor's negligence and/or failure to perform the services provided for herein. The Contractor waives, releases, and discharges the Government from any and all claims, demands, and causes for action for damages to person(s) and/or property which may arise in any manner incident to the execution of this purchase order, except his/her rightful claim for payment or compensation, as provided herein.

7. EMPLOYEES:

The Contractor shall obtain the services of qualified employees in all instances, and the Contractor is responsible for actions or omissions of employees in performance of work under this contract. The Contractor shall not commit nor permit others to commit any waste or unlawful acts or nuisances upon property assigned.

8. OTHER ACTIONS:

The Contractor shall not provide information on nor permit inspection of any properties assigned under this contract until receiving notice from Rural Development that the property is listed for sale. This prohibition does not apply to firms or individuals responding to solicitations to repair a property and seeking information or inspecting for that purpose.

9. GOVERNMENT-FURNISHED MATERIAL:

The Government shall provide the following for use in the performance of this contract:

(a) Copies of necessary Rural Development regulations.

(b) Any applicable poster, forms, and signs

(c) Award repair contracts in excess of $500 which are required to secure, protect or repair the property.

10. CONDUCT:

During this contract, the Contractor will maintain the same high standards of honesty, integrity, impartiality, confidentiality of information, and conduct as Government employees are expected to maintain. The Contractor will not engage in other employment which is incompatible with the duties of this contract. The Contractor will not, directly, or indirectly, engage in financial transactions or any kind of business dealings relying on information obtained through the performance of this contract. The Contractor will not have a direct or indirect financial or other interest that conflicts, or appears to conflict, with its responsibilities and duties under this contract.

11. OTHER:

FAR 52.223-2 AFFIRMATIVE PROCUREMENT OF BIOBASED PRODUCTS UNDER SERVICE

AND CONSTRUCTION CONTRACTS (SEPT 2013)

(a) In the performance of this contract, the contractor shall make maximum use of biobased products that are United States Department of Agriculture (USDA)-designated items unless-

(1) The product cannot be acquired-

(i) Competitively within a time frame providing for compliance with the contract performance schedule.

(ii) Meeting contract performance requirements; or

(iii) At a reasonable price.

(2) The product is to be used in an application covered by a USDA categorical exemption (see 7 CFR 3201.3(e)). For example, all USDA-designated items are exempt from the preferred procurement requirement for the following:

(i) Spacecraft system and launch support equipment.

(ii) Military equipment, i.e., a product or system designed or procured for combat or combat- related missions.

(b) Information about this requirement and these products is available at http://www.biopreferred.gov.

(c) In the performance of this contract, the Contractor shall-

(1) Report to http://www.sam.gov, with a copy to the Contracting Officer, on the product types and dollar value of any USDA-designated biobased products purchased by the Contractor during the previous Government fiscal year, between October 1 and September 30; and

(2) Submit this report no later than-

(i) October 31 of each year during contract performance; and

(ii) At the end of contract performance.

Instructions, FAQ, and Reporting Website:

https://www.biopreferred.gov/BioPreferred/faces/pages/FAQs.xhtml https://www.biopreferred.gov/BioPreferred/faces/pages/FAQs.xhtml