Northwest Montana Human Resources

Mutual Self-Help Housing Membership and Labor Agreement

TABLE OF CONTENTS Page

Agreement 3

I. [ORGANIZATION NAME] Commitment 4

A. Pre-Construction services 4

B. Construction Services 4

II. Member Commitment 7

III. Construction Responsibilities 9

A. Labor Exchange Commitment 9

B. Building Procedures Commitment 11

IV. Election of Officers 12

V. General Rules of the Group 13

VI. Grievance Procedure 15

VII. Violations of the agreement 15

VIII. Termination of the agreement 16

IX. Acknowledgment – Members 16

X. Acknowledgment – [ORG ACRONYM] 17

Glossary 19

Member Tool List 21

[ORG ACRONYM] Tool List 22

2 [ORGANIZATION NAME] MEMBERSHIP AND LABOR AGREEMENT

This Agreement is entered into on , between the members of building group commonly known as " " (name to be determined), hereafter referred to as the “members” and [ORGANIZATION NAME] hereinafter referred to as “[ORG ACRONYM]”. The principal location of building group is ______Construction Group, County/City of ______, and State of ______.

The purpose of this Agreement is to foster the smooth accomplishment of the members' goal of constructing ten (10) houses. The members understand and agree with each other and with [ORG ACRONYM] that this Agreement will control the progress of the project. Violation of any portion of this Agreement may result in implementation of Article VII of this Agreement. Rural Development is not a party of this agreement.

[ORG ACRONYM] is a non-profit Corporation, which provides technical assistance and management services for building group members as set forth below.

[ORG ACRONYM] is not acting as a “contractor” on behalf of the members, but as a construction manager and supervisor. The members, as owner-builders, assume liability for all construction performed by the members, [ORG ACRONYM], volunteers and contractors.

Each member on behalf of himself/herself, their household members, and volunteers under the terms and conditions of this agreement, agree to indemnify, defend and hold harmless all of the members, household members and volunteers from any and all liabilities, losses, claims, cost, demands and expenses (including reasonable attorney’s fees) arising out of or in any way connected with acts done in good faith with the planning or construction of each member’s house or lot improvements.

The members agree to hold [ORG ACRONYM] harmless for the purchase of materials, labor from contractors, subcontractors and suppliers even though such purchases may be made by [ORG ACRONYM] on behalf of the members.

Each member on behalf of himself/herself, their household members and volunteers, under the terms and conditions of this agreement, agree to indemnify, defend and hold harmless [ORG ACRONYM], its successors or assigns from any and all liabilities, losses, claims, costs, demands, and expenses (including reasonable attorney fees) arising out of or in any way connected with the planning or construction of each member’s house or lot improvement.

X______THE SIGNERS OF THIS AGREEMENT FURTHER AGREE THAT THE LABOR PROVIDED BY THE MEMBERS OR HOUSEHOLD MEMBERS OR BY ANY OTHER VOLUNTEER IS DONE ON A VOLUNTEER BASIS, AND AS SUCH, VOLUNTEERS ARE NOT EMPLOYEES OF [ORG ACRONYM] AND ARE NOT ENTITLED

3 TO PAYMENT FOR TIME WORKED OR EMPLOYEE BENEFITS UNDER ANY CIRCUMSTANCES.

I. [ORG ACRONYM] COMMITMENT

[ORG ACRONYM] agrees to provide technical assistance to the undersigned members as follows:

A. Pre-Construction Services

1. Locate and obtain control of suitable Lender(s) approved building sites.

2. Recruit and determine preliminary eligibility of potential members.

3. Prepare all loan application documents for submission to Lender(s) and work with Lender(s) on behalf of the applicants.

4. Arrange a series of informational mandatory attended meetings covering home ownership, teamwork, conflict resolution, group dynamics, loan closing and related subjects. This series is normally referred to as the “Pre- Construction” classes.

B. Construction Services

1. Provide assistance and advice to the members in the selection of house plans, which have been developed by [ORG ACRONYM], and approved by the Lender(s).

2. Assist the officer of the group in the fulfillment of their functions.

3. Teach the members to complete the following construction tasks according to approved plans and specifications.

a) Excavation: Preparation and digging of home site.

a. Footings & foundation. Footings: Construction of the spreading course or courses at the base or bottom of a foundation wall, pier, or column. Foundation: Construction of the supporting portion of a structure below the first floor, or below grade, including footing. (This item may be deleted based on lot improvements prior to construction)

b. Flooring framing: Install mudsill and joists.

c. Sub flooring: Screw and glue sub flooring and sheeting to joists.

4 d. Framing and Sheathing: Frame exterior and interior walls and raise into place. Staple building paper to exterior walls and nail sheeting. e. Roof: Install trusses, nail roof sheathing to trusses. f. Roofing: Installation of a material that acts as a roof covering, making it impervious to the weather, such as shingles. g. Siding and Exterior Trim: Install siding and exterior trim to exterior walls gables and porches. h. Windows and Exterior Doors: Install, square and true, windows and exterior doors. i. HVAC – rough: The installation of ducts and/or piping and the necessary supports to minimize the cutting of walls and joist. j. Insulation: Install insulation in exterior walls and under floor, seal wall, floor penetrations and attic insulation. k. Drywall: Install drywall on all walls, apply seam tape and drywall cement. l. Porch Decking: Installation of decking materials on porch where appropriate. m. HVAC – finish: The installation of registers, grilles and thermostats. n. Interior Trim and Finish: Cut and install trim and windowsills. Install, square and true interior doors. o. Cabinets and Counter Tops: Securing cabinets and counter tops that are plumb and level, square and true. p. Interior Painting: Clean and prepare interior walls and ceiling for painting. Apply paint. p) Exterior Painting: Clean and prepare exterior surfaces for painting. Apply primer and finish coats. Caulk all penetrations. q) Finish Hardware: Install doorknobs, doorstops, bathroom mirrors, paper holders and shower rods. r) Landscaping: Rake rocks and debris. Apply topsoil as needed. Apply sod and shrubs and crushed rock according to approved landscape plan. s) Clean-up: Clean up building sites after all contractors, subcontractors and the members. Clean, touchup and prepare homes for final inspection.

5 t) Flatwork: Pour and finish concrete for garage floor, driveway, walkways and porches (as directed).

Please note that to reach the minimum 65% labor participation as required in the self help building program, all bolded tasks above are completed by the families and their volunteers. Please note also that although not included in SHARES data system, the above bolded items are also completed on all garages. All above bolded items are assigned in SHARES as completed tasks to assure compliance of 65%.

C. Initiate contracts for materials and services to be purchased in accordance with the approved plans and specifications.

D. Provide accounting services to maintain individual home construction accounts, and to pay bills on behalf of the members for the construction of said houses.

E. X______[ORG ACRONYM] will provide power tools and special tools on the job, according to the [ORG ACRONYM] tool list. If any of the tools provided by [ORG ACRONYM] or its employees are lost or damaged by a member or a member’s volunteer (other than through normal wear and tear), the cost of the tool or its repair will be paid for by the member or member’s volunteer responsible for the loss or damage as long as the loss or damage can be attributed to a specific member or member’s volunteer. If the loss or damage of a tool cannot be attributed to a specific member or a member’s volunteer, then the cost of repair or replacement of a tool shall be split equally among all member households. The Construction Supervisors and the Family Coordinator will make final decision with input from the member group.

F. [ORG ACRONYM] Construction Supervisors will adjust their schedule to reasonably conform to the members’ availability to work at the construction site and still have some normalcy in their personal life. Senior Construction Supervisor will be scheduled the work days of Tuesday-Saturday from 9-6 with a quarter time Construction Supervisors scheduled on Sunday’s from 12-5 and Monday from 3-8 for availability to family members. It is the responsibility of each member to make themselves available during this work week for training and productive hours for the success of the group. Members will provide [ORG ACRONYM] weekly written schedules of the hours they are available to work on the site as well as their scheduled employment hours. X- ______

G. Upon reasonable request, [ORG ACRONYM] will present to the members, bids from outside contractors and suppliers to provide the materials and contracted work necessary to build the homes according to the approved plans and specifications. The members may confer with [ORG ACRONYM] in the groups decision of suppliers and contractors.

Suppliers and contractors are evaluated on the basis of quality, price, experience, and timeliness, completeness of bid, past performance, licensing and bond. The bid that best meets these criteria is determined the best and

6 is utilized and presented to the building group for selection by a majority vote. It is this process that requires attendance to all meetings by no less than one member per household. Group members must plan on voting and hiring for the benefit of the group the following sub-contractors: Electrical, Plumbing, HVAC, Windows, Lumber package, Siding, Drywall, Cabinets/Countertops, Flooring, Roofing and Concrete. Group Members are mandated to participate fully in all aspects of the building of their new neighborhood. X______

H. [ORG ACRONYM] will arrange the purchase of accident insurance by the members using funds in the members’ construction loan account. The accident insurance provides members and volunteers with limited insurance for accidents that may occur while working on the houses in the group. It is agreed that in the event of any injuries with a total billing of less than $500.00, the total bill will be split evenly among the group to keep increase of homeowners insurance down for the owner of the property of said injury. Injuries resulting in more than $500.00 in cost will be processed by the volunteer liability policy and then by the individuals course of construction policy as purchased at the onset of construction.

I. It is agreed that the construction period ends when all houses have passed their final inspection by the appropriate jurisdiction and lenders.

J. It is agreed that the owner builder/homeowner has a 12 month technical assistance warranty on the home after satisfactory sign off of the home by the owner builder. Definition of technical assistance warranty is that with a phone call to Self Help Housing Program staff, issue or questions of concern of construction of the home can get answered and directed to the proper avenue of solution.

II. MEMBER COMMITMENT

The undersigned building members agree as follows:

A. To perform the construction tasks listed in Section I. B. 3. of this agreement.

B. To provide, as a member household, 30 hours or more per week of productive labor hours until ALL houses of the members are completed and to build the houses of ALL of the member households. Work Week starts at weekly meeting.

C. To pay for ALL materials, contracted labor, and services used in the construction of their own house, in compliance with [ORG ACRONYM] procedures as described in pre-construction meetings and the resulting Self-Help Housing Participant Manual.

D. To purchase materials and contracted labor on a group basis whereby the members utilize the same suppliers and contractors as supported by the Construction Supervisors and majority voted by the building group.

7 E. To use their best efforts to meet construction goals and objectives established by the members and [ORG ACRONYM] in performance of this agreement. If construction goals are not being met, ALL members agree to increase the number of weekly labor hours to meet construction goals when determined by the [ORG ACRONYM] staff it is necessary to do so. X______

F. To purchase Course of Construction / Homeowners Insurance, as required by the Lender(s) and [ORG ACRONYM], to be in force beginning with the date of loan closing.

G. X______To abide by the approved and signed house plans, budget, blueprints, plot plans, specifications, Lender(s) requirements, and [ORG ACRONYM] procedures as described in pre-construction meetings and The Self- Help Housing Participant Manual.

H. X______To attend ALL scheduled meetings, to include weekly and monthly group meetings which are called at a reasonable time and place, as directed by the [ORG ACRONYM] Construction Supervisors, Bookkeeper, Family Coordinator or Program Manager. Reasonable meeting times and location will be determined by majority vote of the members and concurrence by the [ORG ACRONYM] Program Manager and/or Family Coordinator.

I. To work as directed by the [ORG ACRONYM] Construction Supervisors and/or Family Coordinator make sure that ALL friends or relatives who volunteer work hours, work as directed by the [ORG ACRONYM] Construction Supervisors.

J. To own and maintain a complete set of approved hand tools according to the tool list and to have them on the job site at all times. Showing up without tools and attempting to borrow is unacceptable and will result in being sent home to get the tools required to provide productive hours. Time will not be counted to go home and get the appropriate tools. It is strongly recommended to keep the necessary tools in the trunk of the car most driven to the site. Volunteers must provide their own tools of similar quality and borrowing rules still apply as noted above.

K. All members are required to abide by the trained path of communication and conflict resolution as provided in preconstruction training and as posted in the job shack. In summary, Trouble? First address to member of dispute, then to Group Rep, on to construction supervisor, family coordinator, Program Manager, operations manager, executive director and board of director in that order. It is clearly understood that efforts out of this order will be referred back to this order of success. X______.

L. All members are required to demonstrate a positive and cooperative and respectful behaviors towards one another, volunteers, sub-contractors and [ORG ACRONYM] staff. Violations of this will result in progressive disciplinary action by documentation of Participant Action Report (PAR) Documentation and consequences are as follows:

8 1st Offense: Documented and distributed to group, file, construction supervisor and family coordinator.

Labor requirement must still be met and violating member is responsible each end of work day to be solely responsible for return of all tools to job shack and lock the doors (without help) for the two week period.

2nd Offense: Documented and distributed to group, file, construction supervisor and family coordinator.

Labor requirement must still be met and violating members are responsible at the end of the day to pick up trash from the entire building lots and dispose of it in the dumpster. This will commence in 4 weeks time.

3rd Offense: Documented and distributed to group, file, construction supervisor, family coordinator and Program Manager.

Labor requirement continues with only work allowed during and alongside of construction supervisor. At no time will this member be allowed to work alone or with the rest of the group unless construction supervisor is in the immediate area. Expulsion from the group is an option at this offense by a majority vote from the group and concurrence from the [ORG ACRONYM] staff.

M. To meet ALL requirements as set forth in this agreement.

III. CONSTRUCTION RESPONSIBILITIES

A. Labor Exchange Commitment

1. The members agree to exchange work labor in a cooperative manner, and to work jointly on ALL member’s houses.

2. X______Each member household will be required to provide 30 productive labor hours per week, or as many as necessary, to complete construction of the homes on schedule. Generally, the 30 hours per week work requirement will commence at the time the building permits are issued or when [ORG ACRONYM] determines that a sufficient amount of work is available. Hours required per week are determined by the Construction Supervisors. Hours will begin slowly and progressive increase to the 30 hours a week.

9 3. If an individual is Elderly or disabled, [ORG ACRONYM] will accept alternatives which may include different tasks or acceptance of volunteer contributions. Volunteers substituting for disabled homebuyers must enter into the Membership and Labor Agreement

4. X______The head of the household must put in at least 17 hours a week while the remaining hours can come from outside family members, friends of the family, and community members or organizations willing to volunteer.

5. ALL approved hours worked in excess of 30 hours in a given week, performed by a household member or volunteer, may be credited to banked hours. However, banked hours may not be accumulated in excess of 30 hours.

6. Use of banked hours must be approved by the Group Representative and Construction Supervisor in advance. Use of banked hours must be approved two weeks in advance unless for purposes of medical use for immediate family.

7. Equal time will be allowed for labor performed by members regardless of the type of work involved. It is further agreed that only the work hours of persons 16 years and older may count towards the 30 hours.

8. A member may have non-members help with the work that counts toward the required labor hours. Non-members’ work must be under the direction of the [ORG ACRONYM] Construction Supervisors. It is important to remember this is not building your home - it is building your neighborhood. Each non-member who wishes to assist in construction must be approved by the [ORG ACRONYM] Construction Supervisors. In the event a non- member is unwilling to follow direction of construction supervisor, said non member will be asked to leave the site and a conversation will be arranged with the Family Coordinator, Construction Supervisor and the owner/builder of such volunteer. Further, each member agrees to be responsible on a daily basis for the recording of a non-members labor hours on the “Weekly Timesheet” forms if the non-member is performing labor hours for their credit.

9. Labor hours that count toward the 30 hours per week requirement per member household is labor that contributes to the construction of the all members' houses. Time away from the construction site not on [ORG ACRONYM] approved construction business does not count as productive hours. One-hour credit will be allowed per member household for the selection of items, determined by [ORG ACRONYM], such as choosing finish flooring, cabinets and countertops, lighting fixtures, and landscaping shrubs. Each hour of weekly pre-construction and construction meetings that are attended by a voting member household will count as one (1) hour per member household towards the weekly work requirement. Any missed

10 mandatory meetings for other than paid work requirements, will result in a deduction of the total meeting hours missed from that weeks required hours. It is in the best interest and allowable for the member to send a representative or ask a fellow member to represent them at any meetings unable to attend. It is also required that a phone call to the group representative is in order to notify of the absence.

10. Any vacation or time off from construction must be pre-approved by the group members and [ORG ACRONYM] self help staff.

11. If a member household becomes 10 hours or greater behind the minimum number of hours required at that period of construction, a reminder of their labor commitment will be mailed to them.

12. If a member household becomes 20 hours or greater behind the total minimum number of hours required at that period of construction, no additional materials will be ordered for their house until such time hours are current to required at that time in construction.

13. If a member household becomes 30 hours or greater behind the required number of labor hours, ALL work on their house by the members will STOP, a stop work notice may be posted on that members home and RD will be notified which could jeopardize their RD funding. At this time, the member will be required to meet with the [ORG ACRONYM] Family Coordinator and the building group’s representative to develop a written plan to bring labor hours current. As labor hours are brought current (19 or less hours or less), the members will be authorized by [ORG ACRONYM] to again work on the house. The [ORG ACRONYM] Construction Supervisors and contractors may be allowed to continue to work on the house if [ORG ACRONYM] determines that doing so is in the best interests of the members.

14. If a member household becomes 60 hours or greater behind the required number of labor hours, item VII, of this agreement is implemented.

15. If, after construction begins, a member becomes disabled (said disability verified in writing by a physician and submitted to and approved by the [ORG ACRONYM] Program Manager) or dies, ALL other members agree to help the remaining able bodied member’s volunteers and/or heirs from the disabled or deceased member’s household to construct its house. The members and/or volunteers of the household with the disabled or deceased member agree to continue to work on all members’ houses as much as required by the members (although not required to exceed 30 hours per week). The number of work hours required (30 hours or less per week) will be determined at a member meeting at which a quorum is present.

B. Building Procedures Commitment

11 1. The [ORG ACRONYM] Construction Supervisors will decide what work is to be done by the members each day. The members agree to perform the work assignments made by the Supervisor. Required task will be listed in the job shack and completed at the choice of the group member. Any member who refuses to perform the work assigned by the Supervisor may not receive credit for unassigned labor hours. The Construction Supervisors may require a member who refuses to perform an assigned task to leave the construction site. A member may not work alone on their house unless the Construction Supervisors determines the job can be done alone and he/she has the prior consent of the Construction Supervisors. Mutual self-help of an organized work team is stressed, not individual home building. X______

2. At each weekly meeting each member household will complete a “Weekly Work Schedule” form in which each member household will plan their weekly 30 hour work schedule at the construction site and their “paid” employment work schedule. Completed schedules will be given to the Family Coordinator and construction supervisor and all schedules will be posted at the construction site. The intent of this form is to have a well organized flow of work utilizing the best varied abilities of the members in order to assure proper job sequencing, contractor, and material supplier scheduling.

3. Each member agrees individually, and ALL members agree collectively to abide by [ORG ACRONYM]’s purchase order procedure for ordering materials. Persons authorized to order materials shall be [ORG ACRONYM]’s Self Help Program Staff or individual group members as needed in case by case as assigned on site by self help staff.

4. If a member household becomes three (3) days delinquent in signing construction monthly accounting packets, ALL work on the house will STOP and a $25.00 late charge will be assessed. No additional materials will be ordered until outstanding invoices are paid and [ORG ACRONYM] has assurance that delinquencies will not recur. If a member does not sign his/her checks on time and therefore a discount is lost because of lateness in paying bills, the cost of the loss shall be deducted from the account of the member responsible.

X______Each household will receive an accounting of expenses on their prospective home once a month to include copies of all invoices, general ledger, check book register and budget to actual to date. Each family is encouraged and required to review and provide questions and corrections within 30 days following distribution of such accounting packet. No corrections are allowed after the 30 day deadline of distribution.

5. Each member agrees individually, and ALL members agree collectively to work on each other’s houses together as a team as assigned by the [ORG ACRONYM] Construction Supervisors. This effort shall be with Goodwill,

12 Honesty, Earnest Effort, Good faith and Utmost effort. X______

6. X______Each member agrees that [ORG ACRONYM] and the members are responsible for the completion of the homes according to the approved plans and specifications. It is [ORG ACRONYM]’s and Owner/Builders responsibility to make every reasonable effort to have the houses built in an economical manner and within the planned budget. ALL reasonable costs for the houses are the responsibility of the members. This includes budgeted costs and any costs that are required but may not have been planned. No changes from the RD approved plan will be allowed.

7. Each member agrees that they will be responsible for ALL materials purchased for their house once it is delivered to their site. Any theft, loss, or breakage, whether or not the member is present, is the responsibility of the member and the replacement will be charged as a group split.

8. Each member agrees that property survey stakes can be disturbed during normal construction progress either by accident or through vandalism. [ORG ACRONYM] is not responsible for the inadvertent movement or removal of survey stakes. In the event the survey stakes are disturbed during the construction phase, the cost of replacement of the stakes will be the responsibility of all members as it will be impossible to determine the cause of the disturbance.

9. Each member agrees that any of the construction loan funds that are not expended, once the homes have been completed according to the approved plans and specifications may be used for additional landscaping or home improvements if approved by the state office on a case by case basis or will be returned to the Lender(s) to reduce the amount of the member’s individual loan. Furthermore, each member agrees than any overages of the construction loan funds will the responsibility of each individual member as debt and agrees to cooperate with [ORG ACRONYM] staff to secure sufficient funding to eliminate overage as necessary. X______.

IV. ELECTION OF OFFICERS

A. All officers will be elected by majority vote and remain in position unless the group decides necessary to revote. Voted Group Representative must be approved by Construction Supervisor. In the event of a tie vote the process is repeated.

13 B. Officer to be elected by the members and their duties:

Group Representative - Shall chair all member meetings, assist members to resolve concerns and disputes and be available to help the [ORG ACRONYM] Construction Supervisors schedule work. G. R. will receive one hour a week of labor credit for their effort.

V. GENERAL RULES OF THE GROUP

A. Safety on the construction site is an important concern for [ORG ACRONYM] and other group members. [ORG ACRONYM] wants ALL members, volunteers, and staff to work safely and work in a safe environment. ALL members agree to abide by ALL [ORG ACRONYM] safety policies, standards and procedures both written and verbal. Failure to follow [ORG ACRONYM] safety instructions on the part of any member or volunteer working on a member’s behalf can result in immediate dismissal from the construction site and/or a stop work notice being issued on that member’s house until such time that there is a review of the safety standards and compliance with [ORG ACRONYM] safety instructions.

B. ALL members and their volunteers are required to immediately notify the [ORG ACRONYM] Construction Supervisors, Family Coordinator, Program Manager or the Self-Help Family Group Representative of any unsafe conditions, incidents, equipment, or behaviors they may observe. The Group Representative is required to immediately communicate knowledge of such incidents to [ORG ACRONYM] staff.

C. Safe and appropriate clothing must be worn at all times on the construction site that at no time presents a distraction or hazard to any individual on the site or to accompanying neighbors. Open toe shoes are not allowed and appropriate protective clothing for varying weather conditions must be worn.

D. Illegal drugs or alcohol will not be allowed on the construction site at any time, including social events, for the duration of the construction process. The use of drugs or alcohol on the building site could invalidate the accident insurance policy. Failure to comply will result in immediate termination from the program.

E. ALL members and volunteers agree to consume tobacco products only during break times and only in designated areas. There will be no smoking in the homes after homes are secure by completion of roofs, windows and doors.

F. Each member agrees that no member of the group may hire or pay anyone to do work for him or her, on his or her own house or any other member’s home.

G. All labor timesheets will be kept on site in the timekeeping binder in the job shack. Timesheets will be gathered weekly and recorded by the Family

14 Coordinator after approval by the Construction Supervisors. Any dispute over the number of hours worked will be resolved by working through the grievance procedure established in Article VI of this agreement.

H. All members and volunteers agree to use appropriate and respectful language on site. Please make every effort to limit profanity and offensive language.

I. One vote per member household is allowed. The head of household, co- borrower or designee of a member household may cast their vote at any proper meeting of the members. With a valid excuse from meetings, a member may vote in writing with the understanding, vote will be given to Construction Supervisors before such voting meeting has taken place.

J. At meetings, a quorum consists of at least one voting member present from more than half of the member households. When a quorum is present, the majority vote shall carry all motions except as stated differently in this Agreement. Ex. 10 members in a group, 6 present, would take a majority of 4 to pass on the issue.

K. Each member household has the responsibility to have at least one voting member of the member household attend each mandatory member meeting. Any member household that misses any member meeting without a prior valid excuse will have the number of hours of that meeting deducted from the member’s labor hours for the week in which the meeting was missed. The only valid excuse for a member missing a mandatory meeting is having to work at their place of paid employment. Lack of daycare is not an excuse for lack of participation. It then becomes their responsibility to ask another group member to represent them at the meeting. Either choice, a phone call to the Group Representative is in order. Volunteers are not allowed to attend meetings or vote for members of the group.

L. X______The undersigned members agree to build ALL houses according to the plans, plot plans, and specifications provided by [ORG ACRONYM]. The only approved and considered construction changes must follow RD processes and be only for the purpose of correction in construction of the home. It is up to the construction supervisor after conversation with the owner/builder to determine the necessity of the correction. It is at [ORG ACRONYM]’s discretion to determine if a construction error is valid and should be corrected. Any unauthorized changes will be removed immediately by the owner/builder upon discovery of said unauthorized changes.

M. Furthermore, under no circumstance can personal funds or any other funds or “gift” materials items (jetted tubs, upgraded items) be provided by owner/builder, family or friends. ALL houses according to signed and approved plans,X______

N. ALL members, approved volunteers, and [ORG ACRONYM] staff may enter upon any lot, or structure there on, for any purpose which is in pursuit of constructing the members’ homes according to the approved plans, plot plans, and

15 specifications or to take whatever steps are necessary to correct any violations of this agreement and such entry is hereby agreed to and shall not be deemed a trespass. Provided, this provision shall not be construed as permission to breach the peace.

O. No one will be allowed to attend group meetings or be at the construction site while under the influence of alcohol or illegal drugs. The use of drugs or alcohol on the building site could invalidate the accident insurance policy. Any incident involving alcohol or illegal drugs on the construction site can cause termination of the member by the group and the canceling of this agreement for that member household.

P. No member shall move into their home until ALL of the members’ homes are completed and have passed final Lender(s) inspection and appropriate local inspection requirements.

Q. The members agree that within 30 days before their home's final inspection [ORG ACRONYM] is authorized to make the final withdrawal of funds from the member’s supervised bank account. Once all accounts payables are clear and lien releases are received (60 days after move in), any remaining funds will be returned to the lender in excess of $100.00.

R. The members agree that in the event a member household withdraws or is terminated for cause, [ORG ACRONYM] may replace the member household that has withdrawn or has been terminated with a replacement household approved by [ORG ACRONYM] and the Lender(s).

S. [ORG ACRONYM] will not tolerate unlawful or unfair discrimination or harassment of any kind on the job site. Sexual harassment is a form of discriminatory behavior. No member or volunteer shall be subjected to sexual harassment. Sexual harassment is uninvited, unwelcome, deliberate and repeated behavior that includes sexual advances, requests for sexual favors and other verbal or physical conduct of a sexual nature which is not asked for, not returned and not wanted. Any member, [ORG ACRONYM] employee, or others involved with [ORG ACRONYM] shall notify an appropriate supervisor immediately, according to the established grievance procedures, if they believe they are being unfairly discriminated against or harassed for any reason.

VI. GRIEVANCE PROCEDURE

A. Any dispute or grievance raised by any member shall be first brought to the attention of the Group Representative. [ORG ACRONYM] may also bring a dispute or grievance to the attention of the group members’ Representative and/or [ORG ACRONYM] Program Manager.

B. If no resolution can be accomplished through the group members’ Group Representative, the following grievance procedure shall be followed:

16 The grievance shall be brought to the attention of the Construction Supervisors or the Family Coordinator assigned to the group. If a resolution cannot be made then the [ORG ACRONYM] Program Manager must receive the grievance in writing. If a resolution is not reached again, then the written grievance shall be referred to the [ORG ACRONYM] Operations Manager for a final resolution.

VII. VIOLATIONS OF THE AGREEMENT

A. X______Violations of the terms of this agreement by any member will result in ALL expenditures for materials/labor being immediately halted for that member (unless otherwise specified in this agreement) until a satisfactory resolution is reached or [ORG ACRONYM] determines that the member is in compliance with this agreement. If a satisfactory resolution cannot be reached and the member is not in compliance with this agreement, termination from the group will be determined by a 2/3 majority vote of the members and concurrence by [ORG ACRONYM]. Termination results in the loss of building privileges under the [ORG ACRONYM] Mutual Self-Help Program.

B. [ORG ACRONYM] may post a stop work order on any member’s house if [ORG ACRONYM] determines that the member’s house is not being constructed according to the approved plans and specifications, is 20 or more hours behind as in III.A.11 of this agreement, or is not complying with [ORG ACRONYM] safety instructions. The stop work order shall remain in effect until such time as the [ORG ACRONYM] Program Manager or designee determines that the member(s) are in compliance with this agreement. A stop work order means that with the Construction Supervisor’s approval, the member whose house has a stop work order must still work on other houses in the group but ALL members and [ORG ACRONYM] staff are precluded from working on a home that has a stop work order in effect.

C. If any party of this agreement shall commence suit to enforce any term or condition or covenant herein, or in any other action of relief for relief against the other, declaratory or otherwise, arising out of this agreement, the prevailing party in such shall be entitled to recover, as part of any judgment, such amount as the court shall determine to be reasonable attorney’s fees, together with taxable costs.

D. The law and statutes of the State of ______shall govern this agreement. The venue of any action hereunder shall be in the District Court of ______County, ______.

E. The failure of the members or [ORG ACRONYM] to insist upon strict performance of any of the covenants and agreements of this agreement, or to exercise any option herein conferred shall not be construed to be a waiver or relinquishment of any such right or option or any other covenants, but the same shall be and remain in full force and effect.

17 VIII. TERMINATION OF THE AGREEMENT

This agreement shall be terminated with regard to each member and [ORG ACRONYM] by the following conditions: After ALL members’ houses have been completed, passed ALL inspections, including Lender(s) inspection, ALL bills and credits have been settled, and the construction loan account has been closed or by expulsion for cause, as in section VII.

IX. ACKNOWLEDGEMENT – MEMBERS

By signing below, I agree to ALL conditions of this Membership and Labor Agreement. I also declare that no statements, representations, or any expressed or implied warranties of any nature whatsoever have been made to me by [ORG ACRONYM]. I acknowledge and stipulate that [ORG ACRONYM] is not legally responsible to any third person or me for any liability whatsoever arising out of the acts and omissions of any contractor, subcontractor, or third persons involved in the construction of my residence. I acknowledge that [ORG ACRONYM] agrees only to provide the technical assistance and construction supervision set forth in this agreement. In the event that self-help labor causes damage or a defect that must be remedied, the undersigned members agree to repair the same using their own “self- help” labor, and to pay for materials for the repair, as required. I also acknowledge receipt of a copy of said agreement for my personal files.

MEMBERS:

Date Borrower Co-Borrower

______

18 ______

______

ACKNOWLEDGEMENT - [ORG ACRONYM]

By signing below, [ORG ACRONYM] agrees to ALL conditions of this Membership and Labor Agreement. [ORG ACRONYM] also declares that no statements, representations, or any expressed or implied warranties of any nature whatsoever have been made to the members of this agreement.

[ORGANIZATION NAME]:

______

Senior Constr. Supervisor DATE

______Construction Supervisor DATE

______Family Coordinator DATE

______Construction Assistant DATE

______Program Manager DATE

19 Glossary

Banked Hours: Labor hours performed by a member or a qualified household member in excess of the weekly-required labor hours. Each household is permitted to bank up to no more than 30 hours.

Budget: An estimate of anticipated costs to purchase a building site and build a home according to approved plans and specifications under [ORGANIZATION NAME], Inc. of Great Falls ([ORG ACRONYM]) supervision. Estimates derived by historical previous builds or by actual site bids for prospective neighborhoods.

Building Group: The association formed to build the members’ homes. Your group.

Construction Management and Supervision: The role that [ORG ACRONYM] assumes to provide the services set forth in Section I of the Membership and Labor Agreement.

Construction Site: The area where self-help home building occurs. The construction site includes all of the building lots of the members and the adjacent streets and alleys (whether public or private) that provide access to the member’s building lots.

Sub-Contractor: A licensed and bonded individual or company (other than [ORG ACRONYM]) that provides labor and/or materials that contributes to the construction of the members homes or required improvements. Chosen and voted for by group members acting as General contractor for the self help building process.

Course of Construction Insurance: An insurance policy purchased by each member that conforms to [ORG ACRONYM] specifications, and provides liability and fire insurance for each member during construction of the homes.

Household Member: A person who is included as a member of a household in the documents submitted to the Lender(s).

House Plans/Blueprints: A set of drawings approved by [ORG ACRONYM] that determines what houses the members build.

Member Household: All of the people included as a member of a household in the documents submitted to the Lender(s).

Members: (i.e. Building Group Members) the signatory’s of the Membership and Labor Agreement other than [ORG ACRONYM].

[ORG ACRONYM] Procedures: The methods used by [ORG ACRONYM] to carry out its service commitment to the building groups. [ORG ACRONYM] procedures are discussed in pre-construction meetings and outlined in the self-help participant manual.

20 Plot Plan: A drawing or “footprint” that shows the placement of a members’ house on their building site. The plot plan shows topography, utilities, physical improvements, and landscaping.

Pre-construction: The period of time preceding the closing of the members’ construction loans. The time building sites are located and approved, loan eligibility/approval is determined and building group meetings occur to prepare for loan closing. Meetings include information on home construction and homeownership, teamwork, conflict resolution, responsibilities and accountabilities.

Productive Hours: A productive hour is one hour of labor that is approved by Construction supervisor. Usually found on the task board in the job shack.

Self-Help Participant Manual: A booklet provided to the members that describes the self-help building program, [ORG ACRONYM] procedures and member homeownership responsibilities.

Specifications: A document that lists the type of materials that are used in the construction of a member’s home.

Stop Work Order: A written notice and sign issued in conformance with the Membership and Labor Agreement to preclude all members (except for the stop work order member household and their volunteers) from working on a house. [ORG ACRONYM] staff and contractors may be allowed to work with or for the stop work order member household if [ORG ACRONYM] determines to do so is in the building group’s best interests.

Volunteer: Any person age 16 or older that assists in the construction of the members homes, agrees to work under [ORG ACRONYM]'s supervision and is not a household member.

Weekly Work Schedule: A [ORG ACRONYM] form that is completed by each member household to show what days and times a member and volunteers will be working on members’ homes as well as their schedule paid work hours at their employment. The labor hours work week will begin on the day of the weekly meeting.

TOOL LIST

Member Households

1 Per Person: 1 Utility Knife 1 25' Pocket Tape 1 Tri-Square 1 Set Rubber Boots & Rain Gear (per person) 1 16 oz. Finish Hammer 1 Framing Hammer 1 Nail Puller 1 Nail Set 1 Chalk Line Box with chalk 1 Pair Pliers 1 Nail Apron 1 Hard Hat, Work Gloves, Ear Plugs, Safety Glasses (per person) 1 Screwdriver Set (Phillips, Flat) 1 Level, min. 3' 1 Caulking gun

22 [ORG ACRONYM]

1 Set Chisels 1 Set Screwdrivers 1 Pliers 1 Bevel Square 1 Framing Square 1 Wrecking Bar 1 Flat Bar 1 Hand Axe 1 Utility Knife 1 Nail Puller 1 Nail Set 1 Hacksaw 1 25' Pocket Tape 1 100' Tape 1 Chalk Line 1 Tight Line 1 Tri-Square 1 Light Globe Ext. Cord 1 Allen Wrench Set 2 Caulking Guns 1 Crescent Wrench 12" 2 Punches 1 Square Point Shovel 1 Round Point Shovel 2 Hand Trowels 1 Concrete Edger 1 Belt Sander 1 Hammer Tacker 2 100' & 2 / 50’ Heavy Duty 1 Heavy Duty Circular Saw Extension Cords (15 amp min.) 1 Electric Drill 1/2" 1 4 ¼” Hole Saw 1 Set Drill Bits 2 Hammers (1 Finish, 1 Framing) 1 Saber Saw 1 Saw Blade 1 Pick 1 Mall-Sledgehammer 1 Hand Saw

1 Level (minimum 4') 1 Fire Extinguisher 1 Bull Float 1 First Aid Kit (Commercial Rated) 2 Brooms & 2 Push Brooms 2 6’ Step Ladder (Commercial Rated) 2 Wheel Barrow (Large Capacity) 2 16' Extension Ladder (Commercial Rated) 1 Framing Nail Gun w/ compressor 1 Fresno Float 1 Finish Nail Gun 1 Circular Saw 1 Power Miter Saw (Chop Saw)