NeighborWorks America NATIONAL FORECLOSURE MITIGATION COUNSELING PROGRAM ROUND 10 GRANT AGREEMENT Date of Issuance: Neighborhood Reinvestment Corporation, doing business as NeighborWorks America ( NeighborWorks America ), a nonprofit, public corporation chartered by the Congress of the United States, and [Name of organization] accept the terms and conditions outlined below, which will govern the disbursement and expenditure of National Foreclosure Mitigation Counseling ( NFMC ) grant funds provided by NeighborWorks America to [Name of organization]. The Total Award is as follows: Name of Organization Address of Organization Contact Name and Phone # NFMC Round 10 Award Counseling Funds $ Program-Related Support Funds $ Program-Related Support Funds Grantee can retain at Intermediary or State HFA Level (where applicable) Operational Oversight Funds (where applicable) $ Total Award under this Grant Agreement $ $ Approved Match Waiver Amount (where applicable) $ Total Match Amount To Be Provided by Grantee $ NeighborWorks America moved in June 2013. Contact for the NFMC Program is now as follows: NeighborWorks America ATTN: NFMC Program 999 N. Capitol Street NE Suite 900 Washington, DC 20002 Phone: 202-683-6664 Email: nfmc@nw.org These funds will be disbursed in accordance with the terms and conditions outlined below. By signing this Grant Agreement, Grantee certifies that all representations made in its grant application are true and, in the event of any misrepresentations, acknowledges that NeighborWorks America has the option to rescind any obligation to award funds and to recapture or to de-obligate any funds awarded to Grantee. NeighborWorks America reserves the right to consider an award contingent and to withhold awarded funds until Grantee satisfies all programmatic and audit requirements specified herein. NFMC Round 10 Grant Agreement Page 1 of 19
This Grant Agreement may be amended via addendum, to award Supplemental Grant funds to Grantees should they become available through future appropriations or through a Recapture of Funds, De-obligation of Funds, or any other mechanism. Such awards will be based on any number of factors, which may include but not limited to: Grantee s Round 10 Grant Application; Grantee s Round 10 requested and recommended funding amounts; Performance in previous NFMC grant rounds; Geographic service areas of need; Compliance with NFMC Program requirements; and Demand for funds. CFDA Number: These funds are made available through the Consolidated Appropriations Act of 2016 (Public Law 114-113) and administered by NeighborWorks America. NeighborWorks America is a public, congressionally chartered nonprofit organization that receives an annual federal appropriation directly. By law, it is not a federal agency and therefore has no Catalog of Federal Domestic Assistance (CFDA) tracking number, yet it is a recipient of a direct appropriation of federal funds, and its Grantees are sub-recipients of federal funds. The U.S. Department of the Treasury (listed as Agency 21) disburses these funds to NeighborWorks America. Grantees and sub-recipients of the National Foreclosure Mitigation Counseling (NFMC) Program are instructed to use the following number for CFDA tracking of NFMC Round 10 related funds provided by Neighborhood Reinvestment Corporation: 21.000 PL114-113X1350. Special Notes about Round 10 of the NFMC Program: Supplemental grants may also be made under this agreement as a result of recaptured or underutilized NFMC Program funding made available from previous grant rounds, from future appropriations or otherwise. Any supplemental Grant Awards will be issued in the form of an amendment to this Grant Agreement. Grant funds will be disbursed on a reimbursable basis in NFMC Round 10. For Grantees on the standard disbursement schedule, funds will be disbursed after Grantee has reported 15%, 35%, 55%, 75%, 95%, and 100% of the dollar value of its counseling award. The standard disbursement schedule is explained in detail on Page 33 of the Funding Announcement and stated with specificity in Exhibit E of this Grant Agreement. Requirements for clients receiving Level 4 Post-Modification Counseling have changed. Homeowners may receive NFMC Level 4 counseling only if their loan is from an eligible source. Eligible loan sources are Government Sponsored Entity loans, as well as loans owned or guaranteed by the Veterans Administration, Department of Agriculture Rural Housing Services, or Federal Housing Administration. To ensure adequate funding is reaching communities dramatically affected by foreclosures and the subsequent adverse effects, NeighborWorks America has prioritized grant funds to Grantees serving in Areas of Greatest Need and Areas of Extraordinary Need. Goals for counseling units provided in these areas must be met (within the established variances) before subsequent disbursements are made. By signing this Grant Agreement, Grantee consents to NeighborWorks America s sharing of Grantee s NFMC performance, compliance, and audit information with the U.S. Department of Housing and Urban Development (HUD) and other federal regulatory agencies. Grantees must complete an independent audit within nine months of the completion of their most recent fiscal year. In Round 10, NeighborWorks America will require Grantees to electronically submit complete, updated audit packets within nine months of their fiscal year end date to nfmc@nw.org. For the Verification of Action Taken requirement of Level 2 counseling, Counselor Notes or telephone logs alone do not satisfy the requirement, because neither provide NFMC Round 10 Grant Agreement Page 2 of 19
verifiable proof that the required action took place. Fax transmission sheets, e-mails, mail receipts, screenshots of portal communication, or other verification that action took place is required to be retained in the client s file. Grantees must certify that all counselors performing in NFMC Round 10 have signed the National Industry Standards Code of Ethics and Conduct and adhere to the Minimum Standard Activities for Foreclosure Intervention and Default Counseling. Grantees must collect and store signed copies of the Code of Ethics and Conduct and must provide NeighborWorks America with a list of all counselors (organized by Sub-grantee or counseling office location) who will be performing in NFMC Round 10. Grantees agree to handle and dispose of clients personal information in accordance with the National Industry Standards for Homeownership Counseling, HUD s standards for approval of housing counseling, and applicable laws and regulations. A guidance memo on this issue is included as an attachment to this Grant Agreement (Exhibit R) and posted at neighborworks.org/nfmc. Grantees that plan to use Sub-grantees, Branches, Affiliates, or Contracted Counseling Entities to perform in NFMC Round 10 will be required to complete and submit a form that describes how they provide oversight. Grantees that award sub-grants to counseling agencies that are not HUD-approved counseling agencies must ensure that the Sub-grantees meet or exceed the standards required for HUD approval and must keep a certification of such on file. I. Definitions A. Affiliate. An Affiliate is defined as a nonprofit organization participating in the NFMC Program through a HUD-Approved Housing Counseling Intermediary or State Housing Finance Agency. The Affiliate organization is incorporated separately from the national or regional HUD-Approved Housing Counseling Intermediary or State Housing Finance Agency. An Affiliate is: (1) duly organized and existing as a tax-exempt nonprofit organization, (2) in good standing under the laws of the state of the organization, and (3) authorized to do business. B. Applicant. An Intermediary, State HFA, or NeighborWorks America chartered member (NWO) that has applied for funding under Round 9 of the NFMC Program. C. Branch. An organizational and subordinate unit of an Intermediary, State HFA, or NeighborWorks Organization that is not separately incorporated or organized. A Branch or Branch Office must be in good standing under the laws of the state where it provides or proposes to provide housing counseling services. D. Contracted Counseling Entity. (or CCE ) a Housing Counseling Agency that a NeighborWorks Organization Grantee has contracted with to deliver NFMC Programfunded counseling services. E. Counseling Funds. Funds awarded to Grantee solely for the purpose of providing counseling as described in the Funding Announcement to a client through the NFMC Program. F. De-obligation of Funds. Refers to Grantor s right to rescind its obligation to disburse funds awarded to a Grantee based on a variety of factors, including but not limited to underperformance, non-compliance, end of grant period, breach of this Grant Agreement, violation of state, federal and/or local law or fraudulent or willful misconduct, or change in eligibility status, for example, change in status as an Intermediary, State HFA, or NeighborWorks Organization. NFMC Round 10 Grant Agreement Page 3 of 19
G. Events of Default and Remedy Policy: Document which explains the process for handling: (1) Events of Default and (2) other areas of non-compliance or financial management concerns which may become Events of Default if not remedied. Specifically, the Events of Default and Remedy Policy describes the method in which compliance requirements are conveyed and what resources are available to help Grantees understand the requirements; the general process governing the handling of Events of Default in the NFMC Program; how NeighborWorks America responds to reports of non-compliance or financial management concerns that can become Events of Default if not remedied; and the appeals process afforded Grantees. H. Grant Agreement. Refers to this Agreement. I. Grantee. The Intermediary, State HFA, or NWO directly receiving NFMC grant funds. J. Grantor. Neighborhood Reinvestment Corporation, doing business as NeighborWorks America, is the Grantor and administrator of the NFMC Program. K. HUD. The United States Department of Housing and Urban Development. L. Intermediary. A HUD-approved national or regional organization that provides housing counseling services directly and/or indirectly through its Branches or Affiliates, for whom it exercises control over the quality and type of housing counseling services rendered. An Intermediary provides, in one or more regions of the United States: (a) housing counseling services, directly and/or through its Branches or Affiliates or both; and (b) administrative and supportive services to its network of Affiliates or Branches, including but not limited to oversight, pass-through funding, training and technical assistance. M. Operational Oversight Funds. Available to Intermediaries and State HFAs, these funds may be used to cover any quality control, day-to-day oversight and management of this grant award, and any improvements to systems and infrastructure required. N. Program-Related Support Funds. These funds are awarded to support direct costs associated with increasing the effectiveness and efficiency of the Grantee s and its Subgrantees, Branches or Affiliates foreclosure counseling programs. Examples include but are not limited to establishing a triage system, outreach to delinquent clients, and group orientation and education sessions. O. Recapture of Funds. When a Grantor takes back award money already disbursed to a Grantee based on such factors as underperformance, non-compliance, end of grant period, and/or fraud. P. State Housing Finance Agency (State HFA). The unique public body, agency, or instrumentality created by a specific act of a state legislature and empowered to finance activities designed to provide housing and related facilities and services within the state through a variety of means, including but not limited to, land acquisition, construction or rehabilitation throughout an entire state. State HFAs may provide direct counseling services or sub grant housing counseling funds, or both, to affiliated housing counseling agencies within the State HFA's state. Q. Sub-grantee. Sub-grantee refers to an organization to which an Intermediary or State HFA Grantee awards a sub-grant, and which is accountable to the Intermediary or State HFA Grantee for the use of the funds provided. A Sub-grantee may be separately incorporated or organized, or connected with an Intermediary or State HFA. All Subgrantees must either be a HUD-approved Housing Counseling Agency or meet the minimum standards for receiving this approval. Intermediaries and State HFAs will be held responsible for ensuring that all Sub-grantees, Branches and Affiliates adhere to the standards set forth in this Grant Agreement and agree to oversee the quality of services and adequacy of record keeping for each. Intermediary and State HFA Grantees must NFMC Round 10 Grant Agreement Page 4 of 19
electronically submit each Sub-grantee s name, address, contact person name, e-mail, and telephone number to NeighborWorks America before they are allowed to receive Round 10 funds or begin reporting Round 10 counseling production. Grantees may amend their Subgrantee list during Round 10 performance by submitting a revised Sub-grantee list to NeighborWorks America. R. Supplemental Grant Award. Additional grants may also be made under this agreement as a result of recaptured or underutilized NFMC Program funding made available from previous grant rounds, from future appropriations or otherwise. Any supplemental Grant Awards will be issued in the form of an amendment to this Grant Agreement. S. Total Award. The full amount granted to Grantee through this Grant Agreement, including Counseling Funds, Program-Related Support Funds, and Operational Oversight Funds, where applicable. II. Statement of Work A. Counseling Services 1. The performance period for Round 10 of the NFMC Program is October 1, 2015 to June 30, 2017. The expectation is that all units of counseling funded by this grant will be provided by June 30, 2017. If Grantee does not provide all counseling services by June 30, 2017, NeighborWorks America may rescind its obligation to disburse awarded funds, and the funds shall be subject to a Recapture of Funds and/or De-Obligation of Funds. The expectation is that all NFMC Round 10 funds shall be expended by June 30, 2017. 2. The foreclosure mitigation counseling plan proposed in the Grantee s application, as amended if funds awarded were less than funds requested (the Grantee Plan ), represents the scope of counseling services to be performed by Grantee under this Grant Agreement. Grant funds shall only be used for one or more of the eligible services or activities described in the enclosed NFMC Program Round 10 Funding Announcement. The Grantee must receive approval from NeighborWorks America before implementing any changes in the Grantee Plan. The Grantee shall perform in accordance with the Grantee Plan and shall provide NeighborWorks America quarterly progress reports on such plan, as well as the data listed in subsections A-C below. If variances greater than those stated below emerge, Grantee shall comply with NeighborWorks America s requests for additional information from Grantee to determine the cause of the variance. If the variances are significant enough, as determined by NeighborWorks America, NeighborWorks America will have cause to do a Recapture of Funds or De-obligation of Funds of this or any future award. a. Grantee is obligated to deliver its units of counseling to specific geographic areas (MSAs and rural areas of particular states). NFMC differentiates these geographic areas as Areas if Greatest Need, Areas of Extraordinary Need, and Non-Areas of Greatest Need (See Exhibit A). i. Grantee s reported counseling units shall not vary by more than 25% from the number of units of counseling contracted to be delivered to Areas of Greatest Need and Non-Areas of Greatest Need at each disbursement threshold. ii. Grantee s reported counseling units shall not vary by more than 15% from the number of units of counseling contracted to be delivered to Areas of Extraordinary Need at each disbursement threshold. NFMC Round 10 Grant Agreement Page 5 of 19
b. Ratio of Level One to Level Two counseling by the Grantee shall not vary by more than 50% (See Exhibit B). NOTE: While variances of 50% are allowed, all Grantees must spend down 100% of their counseling funds in order to close out the grant, per the dollar amount associated with levels of counseling as described in the NFMC Program Round 10 Funding Announcement. c. Actual service to low-income and minority homeowners and in low income and minority zip codes shall be as described in Exhibit C. d. NOTE: None of these values (A-C above) exceed what Grantee proposed in its application for NFMC Round 10 funds. Please refer to Exhibit D of this Grant Agreement for detailed information about how these variances are considered prior to each disbursement of NFMC funds and for specific compliance testing requirements that may apply prior to each disbursement of NFMC funds. Please refer to Exhibit E of this Grant Agreement for the disbursement schedule that will govern disbursement of awarded funds. 3. Automatic stops in the Data Collection System will prevent Grantee from uploading more units of counseling than required to meet the standard reimbursement thresholds: 15%, 35%, 55%, 75%, and 95%. At each threshold, NFMC will evaluate Grantee s reported production by geographic area and by level; if it exceeds or does not meet the allowable variances described above, then the Grantee will be required to submit explanatory information for NeighborWorks America s consideration. If the variances are significant enough or the explanation is not sound, as determined by NeighborWorks America, then NeighborWorks America will have cause to perform a Recapture of Funds or De-obligation of Funds, or may choose to adjust the Grantee s disbursement schedule until Grantee is able to perform and report within the allowable variances. 4. The NFMC grant is not intended to cover the total operating expense of a Grantee s counseling program. Grantee shall furnish the necessary personnel, materials, services, facilities, and otherwise do all things necessary for or incidental to the performance of the work set forth in this Grant Agreement. Grantee hereby agrees to accept the fee payments for counseling services, as outlined on Pages 9-23 of the Round 10 Funding Announcement. 5. Grantee can use up to 30% of its counseling funds for Level Four Post-Modification counseling. Where Grantees report and receive credit for Level Four counseling units, their MSA and other production goals will be reduced proportionately. a. In NFMC Round 10, homeowners are eligible to receive Level Four counseling only if their loan is from an eligible source. Eligible loan sources are Government Sponsored Entity loans, as well as loans owned or guaranteed by the Veterans Administration, Department of Agriculture Rural Housing Services, or Federal Housing Administration. b. If Grantee has already received compensation for providing the post-modification counseling as a referral agency for Fannie Mae or Freddie Mac, then it may not also seek to receive compensation from NFMC by reporting the client as having received Level 4 counseling. c. A detailed protocol of Level 4 post-modification counseling has been posted to the NFMC Members Site. 6. NFMC is resetting the duplicate check so that any client who received counseling services prior to January 1, 2016 will be eligible to be counseled again by an NFMC Grantee on or after January 1, 2016 at any level. NFMC Round 10 Grant Agreement Page 6 of 19
a. In order for a client to be uploaded into the Data Collection System for payment, the homeowners must have received a new counseling session after January 1, 2016, and all required documentation must be updated as of the new intake date and filed. b. Grantees should not submit subordinate liens for a homeowner whose primary lien was already serviced by the counselor previously and where there is no change in circumstance for the borrower or change in workout options available to the borrower, nor should Grantee resubmit previously billed clients that it has taken longer than expected to counsel or to receive a final outcome. c. Grantees should document the change in circumstance for the borrower or change in workout options available to the borrower in the client file. d. NFMC Level 4 counseling is not eligible for the duplicate reset. e. Refer to Page 10 of the NFMC Round 10 Funding Announcement for additional guidance. 7. Up to 5% of a Grantee s counseling award can cover clients who were first reported as receiving counseling from another Grantee. Once a Grantee has provided enough counseling to account for 95% of its awarded counseling funds, its ability to upload additional clients in the NFMC Data Collection System will be removed. The Grantee will receive a notification after the upload, and NFMC will review the Grantee s production to date, as well as the non-self duplicate records, to determine the amount of the Grantee s duplicate allowance. Should the Grantee not have had duplicates in excess of this 5%, only the true percentage of duplicates uploaded by that client will be waived, and the Grantee shall continue to report until it has reached 100% of its counseling award, in dollars. 8. The NFMC Round 10 Funding Announcement states with particularity the documentation required for clients reported as served with NFMC counseling funds. Please refer to Pages 9-23 of the NFMC Round 10 Funding Announcement for a complete explanation of the steps, documents, and acceptable variations for satisfying the requirements of each level of NFMC Counseling. Intermediaries and State HFA Grantees are responsible for ensuring proper documentation exists in client files at each of their Sub-grantee, Branch or Affiliate offices. NWO Grantees are responsible for ensuring proper documentation exists in client files at their CCEs. a. When reporting for Level 1 counseling activities, all seven of these completed documents must be in the client s file: intake, authorization, disclosure, privacy policy, budget, Action Plan, and MHA eligibility determination. b. When reporting for Level 2 counseling activities, all five of these completed documents must be in the client s file: authorization, disclosure, privacy policy, budget verification, and verification of action taken based on the Action Plan. Counselor Notes or telephone logs alone do not satisfy the requirement for documenting Level 2 Verification of Action Taken, as neither provide verifiable proof that the action took place. Fax transmission sheets, e- mails, mail receipts, screenshots of portal communication, or other verification that action took place is required to be retained in the client s file. c. When reporting for Level 4a ( Post Modification Counseling ) counseling activities, the following documents must be in the client s file: verification of client loan source, trial or permanent loan modification verification, authorization, disclosure, privacy policy, budget verification, documentation of back-end DTI, Action Plan, Referrals (if applicable), date of follow-up meeting NFMC Round 10 Grant Agreement Page 7 of 19
which includes a letter to the client or detailed counselor note indicating the date of the follow-up meeting and the clients obligations for the next meeting, d. When reporting for Level 4b ( Post Modification Counseling ) counseling, the following documents must be in the file:, authorization, disclosure, privacy policy, documentation of back-end DTI, update on verified budget, status of borrower s modified loan,, and progress against Action Plan. 9. Clients that opt-out of the organization s privacy policy provision allowing for sharing of their information with affiliated third-parties and who choose to do so cannot be uploaded to the Data Collection System for payment by NFMC. B. Programmatic Requirements 1. As certified to by Grantee in its application and in the Representations & Warranties of this Grant Agreement, all recipients of NFMC foreclosure intervention counseling must be owner-occupants of single-family (one- to four-unit) properties with mortgages in default or in danger of default. Tenants, heirs, owners, who do not have a mortgage on the subject property, and owners (including investors), who do not live in the subject property, are not eligible to receive counseling through the NFMC Program. 2. For data collection and reporting purposes, Grantee must use a client management system or systems that at minimum can supply required client level and aggregate NFMC Program data electronically. 3. Counseling offices and services will be accessible to persons with disabilities as well as to homeowners needing translation services. 4. Grantees and Sub-grantees will not discriminate against clients on the basis of their gender, race, color, religion, national origin, ancestry, creed, pregnancy, marital or parental status, familial status, sexual orientation, or physical, mental, emotional or learning disability. 5. An NWO Grantee must be eligible to receive grant funds from NeighborWorks America. If an NWO Grantee is ineligible to receive funds, then it must correct the item(s) that caused the ineligibility before grant funds can be disbursed, but no later than 14 days after the date of this Grant Agreement. 6. Grantee hereby agrees to obtain from its NFMC Program clients an executed authorization form or other legally-permissible client authorization, satisfactory to NeighborWorks America, that will permit Grantee to (a) submit client-level information relating to this grant to the NFMC Data Collection System, (b) open files to be reviewed for program monitoring and compliance purposes, and (c) conduct follow-up with client related to program evaluation. Clients may opt-out of (c) above only, but proof of this opt-out must be recorded in the client s file. Clients that opt-out of (a) or (b) above cannot be uploaded into the NFMC Data Collection System. Grantee must also allow client access to Grantee s privacy policy statement and document receipt of the privacy statement in the client s file. Grantees may incorporate the language above into their existing authorization forms. NeighborWorks America has provided template language for such an authorization form, which can be used at the option of the Grantee at www.neighorworks.org/nfmc. Provision of the form does not constitute legal advice. 7. Grantee must certify (a) that it will adhere to the National Industry Standards Code of Ethics and Conduct as appropriate for the level(s) of counseling it plans to provide; (b) that all counselors performing work in NFMC Round 10 have signed the National Industry Standards Code of Ethics and Conduct, that Grantee will retain those signed copies as evidence of compliance with this requirement, and that Grantee will provide NeighborWorks America with a list of all counselors (organized by Sub-grantee or NFMC Round 10 Grant Agreement Page 8 of 19
counseling office location) who will be performing in NFMC Round 10 and have signed as required; and (c) that all work performed under this grant will meet the Minimum Standard Activities for Foreclosure Intervention and Default Counseling (See Exhibit F). 8. NWO Grantees may contract out up to 50% of their awarded counseling units to nonprofit organizations to provide foreclosure counseling, provided that such arrangements are made on a contractual basis, and the Grantee agrees to be bound by certain provisions of this Grant Agreement and to make certain representations and warranties specified in Exhibit G. 9. Intermediaries and State HFAs must disburse the majority of Counseling and Program- Related Support Funds received with each disbursement to their Sub-grantees, Branches or Affiliates. Request for exceptions to this provision must be submitted to NeighborWorks in writing for approval. All exceptions are approved at NeighborWorks sole discretion. 10. Grantees that plan to use Sub-grantees, Branches or Affiliates to perform in NFMC Round 10 will be required to complete and submit a form that describes how they provide oversight (See Exhibit H) Grantees agree to handle and dispose of clients personal information in accordance with the National Industry Standards for Homeownership Education and Counseling Foreclosure Intervention Specialty, HUD s standards for approval of housing counseling, and applicable laws and regulations. The guidance memo is included here as Exhibit R and posted at www.neighborworks.org/nfmc. 11. Sub-grantees of Intermediaries and State HFAs are not required to be HUD-approved housing counseling agencies. However, Intermediaries and State HFAs that award subgrants to counseling agencies that are not HUD-approved must ensure that the Subgrantees meet or exceed the standards required for HUD approval and must keep a certification of such on file. 12. Grantees may charge a nominal fee for pulling credit reports if the cost does not deter clients from seeking counseling. C. Grant Start-Up Documentation Required - In order to initiate reporting capabilities under this Grant Agreement, Grantee must submit the following documents (a checklist is attached as Exhibit I). The signed Grant Agreement and all start-up documents should be received by NeighborWorks America no later than [insert date]. 1. Two copies of the Grant Agreement, signed by an authorized agent of Grantee. The Grant Agreement will be held by NeighborWorks America until Grantee has completed its commitments under previous NFMC grant rounds. One fully executed copy will be sent to the Grantee upon commencement of Round 10 performance. 2. Certification that Grantee is authorized to do business in the states where it proposes to provide foreclosure prevention counseling services (for first-time Grantees only). 3. Proof of fidelity bond coverage or honesty insurance policy that names NeighborWorks America as additional insured. A Grantee s policy should be at least equal to the lesser of either (a) Grantee s NFMC award or (b) $100,000. (NOTE: Only State HFAs may request a waiver from this provision, provided they issue a statement in writing that they have comparable insurance covering acts of their employees.) 4. Copy of Grantee s records retention policy, which must comply with the standards outlined in Section IV (D) below. NFMC Round 10 Grant Agreement Page 9 of 19
5. Proof of compliance with the NFMC translation services requirement described on Page 37 of the Funding Announcement. If Grantee does not offer translation services, it must provide (1) a Memorandum of Understanding or other documentation detailing a relationship with a translation agency and (2) a referral form that describes options for clients who require translation services. If a Grantee does provide translation services, it must provide a form that lists (1) which staff will provide translation services to NFMC clients in Round 10, (2) what languages are offered by those staff, and (3) a referral form that describes options for clients who require translation services in languages the agency does not offer. A template is provided at www.neighborworks.org/nfmc. 6. Exhibits A-C If applicable, modifications Grantee wishes to request to their goals based upon the award received. Please make modifications only to the column provided on the exhibits. 7. Exhibit G Signed Representations and Warranties Certification. Attach list of counselors, organized by Sub-Grantee / Counseling location, as required by Representation 2(L). A template is provided at www.neighborworks.org/nfmc. 8. Exhibit H Grantee Oversight Plan, showing how Grantee plans to provide oversight to all Sub-grantees, Branches, and Affiliates performing work under NFMC Round 10. This is required for all Intermediaries and State HFAs, as well as all NWOs that are contracting out a portion of their counseling services under this grant. 9. Exhibit J If Grantee is a first time NFMC Grant Recipient, Non Payroll Direct Deposit Form with a voided check for checking accounts or a deposit slip. 10. Exhibit K If Grantee is a first time NFMC Grant Recipient, IRS Form W-9. 11. Exhibit L Intermediaries, State HFAs, and NWOs (if applicable) must submit an Excel spreadsheet listing all Sub-grantees, Branches, Affiliates, or CCEs to whom they are contracting out counseling services. For reporting purposes, Grantees must assign a unique identifier (or Branch ID ) for each entity listed on the spreadsheet. This number shall be used to track which entity served a client when the Grantee reports on NFMC funded clients. A template Excel spreadsheet is provided at www.neighborworks.org/nfmc with detailed instructions. Grantee may add or remove eligible Sub-grantees, Branches, Affiliates, or CCEs during the grant period by sending a revised spreadsheet to NFMCUpdates@nw.org. Adding Sub-grantees, Branches, Affiliates, or CCEs will not result in an increase in the grant award. However, foreclosure counseling sessions completed by added entities can be counted toward the Grantee s goals. 12. Exhibit M Documentation of cash or in-kind match as described in Section III (B) below. 13. Exhibit N Updated Grantee contact list. A template Excel spreadsheet is provided at www.neighborworks.org/nfmc with detailed instructions. Grantees must complete the spreadsheet, indicating correct contacts for various aspects of the NFMC Program. III. Disbursement Schedule & Match A. The disbursement schedule in Exhibit E outlines how these awarded funds will be disbursed on a reimbursable basis. B. The match window, or period within which the match must be expended or raised, extends from April 1, 2015 to June 30, 2017. Any expenditures related to the Applicant s foreclosure mitigation program that occur between April 1, 2015 and the date award funds are received are eligible to be counted toward the match as long as they were not also counted for match for NFMC Round 1, Round 2, Round 3, Round 4, Round 5, Round 6, NFMC Round 10 Grant Agreement Page 10 of 19
Round 7, Round 8, Round 9 or Legal Assistance Funds. Federal sources of funds (with the exception of Community Block Development Grant (CBDG) funds may not be used as a source of match. Funds raised before the match window can be counted toward match as long as they will be expended between April 1, 2015 and June 30, 2017. If Grantee uses non-restricted net assets or retained earnings as sources of match funds, Grantee must retain and provide back-up documentation that these funds are available and are credited to the foreclosure counseling budget. Examples of supporting documentation are financial records (e.g., profit and loss and balance sheet statements, management accounts, approved budget clearly showing NFMC Program match funds, etc.); signed minutes of meetings committing these funds, Board or agency resolutions; and third-party confirmations. C. In order to report Round 10 production to the NFMC Data Collection System, Grantee must provide documentation that it has received or expended its cash or in-kind match in accordance with the schedule described in Exhibit E and the provisions outlined on Pages 31-32 of the Round 10 Funding Announcement. All documentation must be accompanied by the Excel spreadsheet available at www.neighborworks.org/nfmc (see Exhibit M) and needs to identify (1) the source of funds; (2) the dollar amount; and (3) confirmation that the funds are being used for the Grantee s foreclosure counseling program. Examples of acceptable documentation are outlined in the spreadsheet on www.neighborworks.org/nfmc. They include: For cash match, copies of original commitment letters or award letters. If these are general operating commitments, there must be a notation that these funds are being used for the Grantee s foreclosure program. Copies of contribution checks accompanied by a notation that these funds are being used for the Grantee s foreclosure program are also acceptable For in-kind match, the spreadsheet on www.neighborworks.org/nfmc details the required documentation. Please also refer to Exhibit M of this Grant Agreement. D. Subsequent disbursements will also be contingent upon documentation of requisite cash or in-kind match. E. Grantees will upload client-level data into the Data Collection System. In the event clients receive the same level of counseling service from two different Grantees, the counseling units reported shall be attributed to the Grantee that first entered the client into the Data Collection System. F. Grantee is required to expend their full counseling award in dollars, even if this means overproducing their required units after variances are considered. G. No grant funds shall be disbursed to a Grantee that has an overdue quarterly report until the report has been submitted by the Grantee and approved by NeighborWorks America, nor will payments be made to Grantees that are not in compliance with the terms of its grant, as outlined in the Funding Announcement, Notice of Intent to Award Funds, and Grant Agreement. NWOs that are ineligible for grant funds will not receive disbursements until the reason for ineligibility has been corrected. H. If Grantee was awarded NFMC funds in a previous grant round, then it must complete enough counseling to account for 100% of the counseling dollar amount awarded and have completed the final reporting requirements for those funds before it will be permitted to report production in NFMC Round 10. I. NeighborWorks America reserves the right to adjust the Grantee s disbursement schedule and amount if Grantee is not in compliance with terms of its grant, as outlined in the Funding Announcement, Notice of Intent to Award Funds, and Grant Agreement. NFMC Round 10 Grant Agreement Page 11 of 19
J. NeighborWorks America reserves the right to recapture funds from Grantee in the event that demand for Grantee counseling services falls short of Grantee projections. K. Grantee must be in good standing in order for awarded NFMC funds to be disbursed. Intermediaries and State HFAs that have received Housing Counseling grants from HUD in the past must be in good standing with HUD. Not in good standing is defined as a failure to comply with the laws and regulations that govern the HUD housing counseling program, or the inability of a Grantee to draw down HUD housing counseling grant funds for any reason. Furthermore, Grantees that have received Housing Counseling grants from HUD in the past are not in good standing unless they (a) continue to be a HUD-Approved Counseling Agency and (b) are not under investigation(s) by HUD for possible noncompliance that have resulted in funds being withheld by HUD. L. A Grantee is in good standing if it does not have a Notice of Default effective and is not currently suspended from the NFMC Program. If Grantee did not receive HUD housing counseling funds during the past federal fiscal year and, therefore, has no HUD-9902 on file, then Grantee must comply with NeighborWorks America or its contracted third-party process if verification of Demonstrated Experience is requested before funds are released and before Grantee is allowed to begin reporting its counseling production. If discrepancies are found, then NeighborWorks America reserves the right to adjust the award amount accordingly, including Recapture of Funds or rescission of obligation to award funds. IV. Program Reporting Requirements A. Production Reports 1. As frequently as desired, but no less than quarterly, Grantee will upload client level data, as detailed in the Funding Announcement, to the Data Collection System. Data points required for each client are attached as Exhibit O. 2. Grantee is required to obtain and to report all data points, including the optional data points, when known. Congress is particularly interested in receiving reports on outcomes; therefore, Grantees should pay careful attention to reporting outcome data when known. B. Quarterly Reports 1. Quarterly reports must be filed on aggregate activity toward overall goals established under this Grant Agreement. While grant funds are disbursed outside of the quarterly report schedule identified in this Grant Agreement, Grantees must be up-to-date on quarterly reporting in order to obtain the next disbursement. 2. Quarterly reports will include (but not be limited to) progress against aggregate counseling goals, provision of client level data, and tracking of expenditures to date. Reports will also include a narrative section on overall program activities, on successes and challenges encountered in helping clients avoid foreclosure or mitigate losses, and efforts to ensure the affordability of mortgages when clients retain their homes. Questions for the narrative portion of the quarterly reports are included as Exhibit P. 3. The quarterly reporting schedule for NFMC Round 10 is as follows: August 1, 2016: First quarterly report required reporting period October 1, 2015 to June 30, 2016 November 1, 2016: Second quarterly report required reporting period July 1, 2016 to September 30, 2016 NFMC Round 10 Grant Agreement Page 12 of 19
February 1, 2016: Third quarterly report required reporting period October 1, 2016 to December 31, 2016 May 1, 2017: Fourth and final quarterly report required reporting period January 1, 2017 to March 31, 2017 August 31, 2017: Grantees Final Report and expenditure report due V. Evaluation and Quality Control and Compliance Measures A. NeighborWorks America will collect data, conduct compliance reviews and complete an NFMC Program evaluation because NeighborWorks America is accountable to Congress, the Office of Management and Budget, and the United States taxpayer. Grantee agrees to cooperate fully with NeighborWorks America, its agents, authorized representatives, and third-party contractors as they perform the evaluation and quality control and compliance reviews. B. Program Evaluation: Grantee and, if applicable, its Sub-grantees, Branches, and Affiliates must comply with a separate evaluation of NFMC Program activity and client outcomes, which may occur up to June 30, 2020. C. Quality Control and Compliance Measures 1. By entering into this Grant Agreement, Grantee and, if applicable, its Sub-grantees, Branches, and Affiliates agree to cooperate fully with the quality control and compliance efforts of the NFMC Program, as conducted by NeighborWorks America, its agents, authorized representatives, and third-party contractors, through site visits, file audits, and other methods. Compliance reviews will include but are not limited to: a. Standard compliance reviews of program operations and counseling files for clients reported to the NFMC Program, in which reviews are conducted on-site or remotely; b. Additional client file reviews and site visits, in which files are selected at random for remote compliance reviews of specific client files including a requirement that some Grantees submit randomly selected client files for compliance review before their grant funds are disbursed; c. Special compliance reviews that are performed when NeighborWorks America receives reports of Grantee non-compliance or has concerns about a Grantee s program management or financial management. 2. Whenever possible, NeighborWorks America will give Grantee at least fifteen (15) days notice before conducting an on-site compliance review. However, in situations where a specific compliance concern warrants immediate action, NeighborWorks America reserves the right to give less than fifteen (15) days notice. 3. Grantees are required to notify NeighborWorks America if they are the subject of an investigation related to foreclosure intervention counseling or the use of federal funds. As used in this Grant Agreement, investigation shall not include i.) a regularly-scheduled review by a government agency (for example, as required for licensure); or ii.) any labor or employment matters that do not relate to foreclosure intervention counseling or the use of federal funds. 4. Records Retention Policies: In accordance with applicable law, the Grantee shall establish and comply with a records retention policy. NFMC Round 10 Grant Agreement Page 13 of 19
a. Financial records, supporting documentation, statistical records, and all records pertinent to the grant shall be retained for a period of three (3) years from the date of submission of the final report for the grant round. The only exceptions are the following: 1. If any litigation, claim or audit is started before expiration of the three (3) year period, the records shall be retained until the litigation, claims or audit findings involving the records have been resolved and final action taken. 2. Records for real property and equipment acquired with the grant funds shall be retained for three (3) years after final disposition. b. Notwithstanding the foregoing, or any other provision in this Grant Agreement, NeighborWorks America s and its authorized representatives, agents and third-party contractors rights to site, document and personnel access for evaluation purposes are not limited to the required retention period, but shall last as long as records are retained. c. In accordance with the NFMC Records Retention policy that requires all records pertinent to the grant shall be retained for a period of three (3) years from the date of the submission of the final report for the grant round, NFMC Grantees must have policies and procedures in place for the discovery of the destruction of NFMC program-related records as a result of a natural or man-made disaster for itself and any Sub-grantees, Branches, Affiliates, and/or CCEs. VI. Management of Grant Funds A. By entering into this Grant Agreement, Grantee acknowledges that it is able to track its NFMC Program grant funds and expenditures. Grantee will maintain a separate budget for its foreclosure prevention counseling program, and all NFMC funding will be used solely to fund Grantee s foreclosure program and related expenses. To the extent Grantee has not expended its grant funds, the funds will be invested in securities either of the United States government or that are guaranteed by the United States government, or exclusively deposited in federally insured or state accounts. The investment of grant funds is permitted only for the preservation of principal and not for any type of speculative investment. Interest earnings on grant funds may be retained by Grantees and must be used exclusively to further program objectives for additional Counseling Funds, Program-Related Support Funds, or Operational Oversight Funds (if applicable) provided the Grantee is in compliance with all terms and conditions of this Grant Agreement. B. Grantee is responsible for providing an expenditure report for the use of NFMC funds with the Final Report including, if applicable, the expenditures of its Sub-grantees, Branches and Affiliates. In turn, Grantee is responsible for ensuring that its Sub-grantees, Branches, and Affiliates keep a separate foreclosure program budget and keep a record of all reimbursements received and costs of implementing its foreclosure counseling program. NFMC Round 10 Grant Agreement Page 14 of 19
C. Grantee remains liable for the accounting and full repayment of all unexpended, improperly spent, or unaccounted-for grant funds in accordance with the terms and conditions of this Grant Agreement. D. Grantee shall obtain fidelity bond coverage or honesty insurance in an amount that is at least equal to the lesser of (a) its grant funds awarded or (b) $100,000. For all such fidelity bond coverage or honesty insurance, NeighborWorks America should be named as an additional insured. State HFAs only may request a waiver from this provision, provided they issue a statement in writing that they have comparable insurance covering acts of their employees. E. Grantee agrees to remain fully informed of all laws and regulations that apply to the Grantee, and will give NeighborWorks America prompt notice of any action or event that may be cause for suspension or termination of this Grant Agreement. Failure to provide such notice constitutes a material breach of this Grant Agreement. Such notices shall be sent to: NeighborWorks America With a copy to: NeighborWorks America ATTN: NFMC Division ATTN: Office of General Counsel 999 N. Capitol NE, Suite 900 999 N. Capitol NE, Suite 900 Washington, DC 20002 Washington, DC 20002 VII. Audit Requirements The Office of Management and Budget released its final revised guidance for Federal Awards. All Applicants should ensure that it follows the Uniform Grant Guidance applicable to the OMB Circulars, A-21, A-87, A-110, and A-122 as well as Circulars A-89, A-102 and A-133; and the guidance in Circular A-50 on Single Audit Act follow-up. a. Compliance with OMB Circulars: The grant funds are federal funds, and as such, any requirements applicable to recipients of federal funds will be required of all Grantees. Grantees that receive NFMC funds and expend more than $750,000 in federal funds during the fiscal year will comply with Office of Management and Budget (OMB) Circular requirements (Uniform Grant Guidance to CFR 200). Except where stated otherwise in this Grant Agreement, Grantees that are non-profit organizations will be subject to the administrative requirements of OMB Circular A-110, as it may be amended, relating to consistent administration of grants to non-profit organizations and A-122, relating to cost principles for grants and other agreements with non-profit organizations. Grantees that are state or local government entities will be subject to the administrative requirements of OMB Circular A-102, as it may be amended, relating to consistent administration of grants to governmental entities and A-87, as amended and restated, as it relates to cost principles for governmental entities. Please note: Organizations that are required to complete an OMB A-133 audit must submit that audit to the Federal Audit Clearinghouse within nine months of their fiscal year end. OMB has changed its Circular A-133 audit requirements raising the federal awards threshold from $500,000 to $750,000. For further details regarding how and when this change may affect your agency, please refer to OMB s website. b. Audit Submissions: As stated in the Round 10 Funding Announcement, Grantees must have completed an independent audit within nine months of the completion of their most recent fiscal year. In Round 10, NeighborWorks America will require Grantees to submit NFMC Round 10 Grant Agreement Page 15 of 19