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HomeMy WebLinkAboutResolution - 2025-R0255 - HOME Investment Partnerships Program Funding Agreement, Contract 18919 - 06/10/2025Resolution No. 2025-R0255 Item No. 5.13 June 10, 2025 12ESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock is hereby authorized and directed to execute for and on behalf of the City of Lubbock, HOME Investment Partnership Program Funding Agreement 18919 to construct affordablc housing for low to moderate income individuals or families, and all related documents, betwecn the City of Lubbock and Lubbock Habitat for Humanity, Inc. Said Contract is attached hereto and incorporated in this resolution as if fully set forth herein and shall be included in the minutes of the City Council. Passed by the City Council on June 10, 2025 •- _ � � CHR TY MA I -GA IA, MAYOR PRO TEM ATTEST: rtney Paz, City ecretaty APPROVED AS TO CONTENT: aren Murfee, Community Develop t Director APPROVED AS TO FORIVI: elli Leisure, Senior Assistant City Attorney ccdocs/RES.HOME 18919 Habitat 5.16.25 Resolution No. 2025-R0255 HOME INVESTMENT PARTNERSHIPS PROGRAM FUNDING AGREEMENT Between THE CITY OF LUBBOCK AND LUBBOCK HABITAT FOR HUMANITY, INC. This Community Development HOME Investment Partnerships (HOME) Program Funding Agreement (the "AgreemenY'), Contract No.18919, is made by and between the City of Lubbock, a State of Texas home rule municipal corporation (the "City") and LUBBOCK HABITAT FOR HUMANITY, INC., (the "Developer") whose principal office is located at 3630 SOTH St., Lubbock TX 79413, (each a"Party," and collectively the "Parties") acting by and through the Parties' representative officers and officials, and is hereby entered into by the Parties on this l Oth day of June , 2025 (the "Effective Date"). RECITALS WHEREAS, the City is obligated to perform certain services in its undertaking of the HOME Investment Partnerships Program (the "HOME Program") pursuant to Titles I and II of the Cranston-Gonzales National Affordable Housing Act; and WHEREAS, the Developer operates as a Texas non-profit corporation offering services to families throughout Lubbock; and WHEREAS, the Developer proposes to construct two (2) new single-family homes for the Habitat Homeowner Program which provides affordable homeownership opportunities for low- to moderate-income households within the city limits of Lubbock (the "Project"). WHEREAS, the City Council of the City of Lubbock has declared the Services provided by the Developer to be a public purpose; and WHEREAS, the l�eveloper and the Services it provides have been found to meet the criteria for funding under 24 CFR Part 92; and WHEREAS, the accomplishment of the above public purpose is the predominate purpose of this transaction; continuing supervision by the City together with statutory and contractual requirements provide sufficient assurance that the public purpose will be accomplished; the City Council has found that the Developer has the special expertise, knowledge and experience necessary for the construction of affordable homes called Habitat Homeowner Program and that the City will receive adequate consideration in the form of substantial public benefit; and NOW, THEREFORE: THE PARTIES, FOR GOOD AND VALUABLE CONSIDERATION, AGREE AS FOLLOWS: HOME Funding Agreement, Habitat for Humanity Page 1 AGREEMENT I. TERMS OF AGREEMENT A. It is expressly agreed and understood that the total amount to be paid by the City under this Agreement shall not exceed the sum of Four Hundred Thousand Dollars ($400,000) for the Habitat Homeowner Program in return for the Developer carrying out the Project set forth in this agreement as consideration of said funds. B. The Terms of this Agreement shall commence on the Effective Date and end on September 30, 2026, to which all funds must be expended under this Agreement. The Project is considered complete when construction has been completed, and the units are ready for occupancy. C. The expenditure of HOME funds is subject to Federal deadlines and could result in the loss of the Federal funds. By the acceptance and execution of this Agreement, it is understood and agreed by the Developer that the Project will be completed by September 30, 2026 and the Developer will make every effort to ensure that the project will not be delayed. Failure to meet deadlines can result in cancellation of this agreement and the revocation of HOME funds. The Developer may request an extension of this deadline in writing, by submitting information about the status of the project, steps being taken to overcome any obstacles to completion, proof of adequate funding to complete the project, and a schedule with milestones for completion of the project. D. Since it is mutually agreed that time is of the essence in regard to this Agreement, the Developer shall cause appropriate provisions to be inserted in all contracts or subcontracts relative to the work tasks required by this Agreement, in order to ensure that the project will be completed according to the timetable set forth. It is intended that such provisions inserted in any subcontracts be, to the fullest extent permitted by law and equity, binding for the benefit of the City and enforceable by the City against the Developer and its successors and assigns to the Project or any part thereof or any interest therein. E. In the event the Developer is unable to meet the above schedule or complete the above services because of delays resulting from natural or man-made emergencies and disasters untimely review and approval by the City and other governmental authorities having jurisdiction over the project, or other delays that are not caused by the Developer, the City shall grant a reasonable extension of time for completion of the Work. It shall be the responsibility of the Developer to notify the City promptly in writing whenever a delay is anticipated or experienced, and to inform the City of all facts and details related to the delay. F. Construction will start no later than six (6) months from the execution of this agreement. Failure of the Developer to begin construction with six (6) months from the date of execution of this agreement will require a written explanation to the City of the cause for delay and revised timeline for completion. If construction has not commenced within twelve (12) months of the execution of this agreement, the project may be considered non-compliant and HOME funds previously expended must be returned to the City of Lubbock by the Developer. HOME Funding Agreement, Habitat for Humanity Page 2 G. If the project assisted is terminated before completion, either voluntarily or involuntarily, it constitutes an ineligible Program, and the Developer must repay any HOME funds invested in the project to the City in accordance with §92.503(b): If the project does not meet the requirements for affordable housing, it will be terminated and the Developer must repay all HOME funds invested in the project to the City in accordance with �92.503(b). H. For the purpose of complying with this Agreement, completion shall mean that all necessary construction work has been completed and the project has been determined complete and ready for occupancy based on a final inspection of a certified Housing Inspection Specialist with the City of Lubbock. I. The Developer ensures the units must be sold and occupied within six (6) months of project completion. J. This Project is subject to ongoing requirements of the HOME program for fifteen (15) years from the date of completion, known as the Period of Affordability. During the Period of Affordability, the following Recapture provisions apply: 1. The City intends that the HOME funds provided for the construction of affordable homeownership units be treated as a direct subsidy to the eligible homebuyer. The difference between the total development cost and the reduced sales price shall constitute the HOME subsidy subject to Recapture in the event of noncompliance. 2. The Developer shall ensure the that each homebuyer executes a written agreement and a recorded recapture note and deed of trust, consistent with 24 CFR Part 92.254(a)(5)(i), setting for the terms of the affordability period, the recapture amount and the method of repayment to the City. 3. The Recapture amount shall be the entire amount of the direct HOME-subsidy provided, subject to forgiveness over the 15-year affordability period on a pro-rata basis. 4. The City will provide a standard Recapture Agreement upon request to be used at closing. All documentation pertaining to the sale of the units must be provided to the City including copies of liens and agreements relevant to the sale. SCOPE OF WORK The Developer, in close coordination with the City, shall perform all professional services (the "Work") necessary to complete the development and subsequent sale of the following Project in full compliance with the terms of this Agreement: K. Project Description The Developer will be responsible for administering a HOME-funded Affordable Housing Development Program for First-Time Homebuyers in a manner satisfactory to the City and consistent with any standards required as a condition of providing these funds. Such HOME Funding Agreement, Habitat for Humanity Page 3 program will provide affordable homeownership opportunities through new construction of single-family units as eligible under the HOME Investment Partnerships Program. The Developer certifies the activities carried out with funds provided under this Agreement will meet the HOME Program's eligible activities under 24 CFR Part 92 . L. Project Addresses Under this agreement, the Developer agrees to construct two (2) single-family units located at: • 3008 E. 3`d Place • 3010 E. 3`� Place A HOME-funded project specific agreement will be executed for each property listed above and will include the exact amount of HOME funds committed to each unit. This agreement will legally bind the Developer to the requirements and regulations contained within this Agreement, and will include a detailed project completion schedule, budget, and the contract for sale of the property. M. City Responsibilities It is expressly understood and agreed by the parties hereto that City's responsibilities are contingent upon the actual receipt of adequate federal funds to meet City's liabilities under this Agreement. If adequate funds are not available to make payments under this Agreement, City shall notify Developer in writing within a reasonable time after such fact is determined. City shall terminate this Agreement and will not be liable for failure to make payrnents to Developer under this Agreement. 2. City shall not be liable for any incurred Developer costs, Developer reimbursements which have been paid to or subject to payment to Developer by any source other than City or Developer. 3. City shall not be liable to Developer for any costs incurred by Developer which are not allowable costs, as set forth in 24 CFR 92 Subpart E. 4. City shall not be liable to Developer for any costs incurred by ❑eveloper or for any performances rendered by Developer which are not strictly in accordance with the terms of this Agreement. 5. City shall not be liable to Developer for any costs incurred by Developer in the performance of this Agreement which have not been billed to City by Developer within ninety (90) days unless otherwise approved by the City. 6. City shall not be liable for costs incurred or performances rendered by Developer before commencement of this Agreement or after termination of this Agreement. 7. City shall review all work specifications prior to the beginning of the procurement process. HOME Funding Agreement, Habitat for Humanity Page 4 8. City shall inspect all construction work for compliance with work specifications prior to the release of any funds. 9. City shall, prior to the awarding of any federal funds under this agreement, perform an Environmental Review of the properties as listed under Section II.B. N. Developer's Responsibilities 1. Developer shall perform all activities in accordance with the Scope of Work, and the applicable laws and regulations set forth herein; the assurance, certifications, and all other terms, provisions, and requirements set forth in this Agreement. 2. It is understood the Developer has provided a specific working Budget and agrees to the Payment terms in Section N below. 3. Developer shall submit to City reports on the operation and performance of the Project during the terms of this Agreement, as requested by the City. 4. In addition to the limitations on liability otherwise specified in this Agreement, it is expressly understood and agreed by both Parties that if Developer fails to submit to City in a timely and satisfactory manner any report required by this Agreement, the City may, at its sole option and in its sole discretion, withhold any or all payments otherwise due or requested by Developer. If City withholds such payments, it shall notify Developer in writing of its decision and the reasons thereof. Payments may be withheld by City until the Developer provides the requested report, and is determined to be true and accurate by the City. 5. Developer shall refund to City any sum of money which has been paid to Developer, of which is determined to be an overpayment or has not been spent by Developer strictly in accordance with the terms of this Agreement and as eligible under HUD HOME program regulation. Developer will return the fund to the City within thirty (30) working days after the refund is requested by the City. 6. Developer agrees to comply with Housing and Urban Development (HUD) Outcome Performance Measurement requirements and reporting. 7. The proposed development includes less than 5 HOME-assisted units; therefore, the City's Affirmative Marketing procedure are not required to be implemented for this project. 8. Developer agrees that the units constructed under the HOME Program shall be made available exclusively to eligible low to moderate-income households whose gross household income does not exceed the income eligibility requirements as established by HUD. 9. Developer shall submit to City a request for a review of all work specifications prior to the beginning of the construction process. HOME Funding Agreement, Habitat for Humanity Page 5 10. Developer will have the Match and/or Non-HOME Program funds ready and available prior to the start of the project, if applicable. Failure to do so may delay, and or cancel the project. III. O. Matchin� Contribution Requirements: Match required for the HOME program is 25% of the total allocation of HOME Program funds under this agreement. Funds used for administrative and planning costs (pursuant to 24 CFR 92.207) are not required to be matched. P. Staffing to be Provided bv Developer Name Christy Reeves Gabriella Eisenman Title Executive Director Administrative Assistant HOME PROGRAM: REQUIREMENTS FOR AFFORDABLE HOUSING DEVELOPMENT Under this Agreement, Developers agrees to comply with applicable HOME Program Requirements as they apply to Affordable Housing Development activities. A. The City will complete an environmental review of the proposed project. The Developer understands no project funds may be incurred for reimbursement prior to the completion of the environmental review by the City. B. Notwithstanding any provisions of this Agreement, the Parties hereto agree and acknowledge that this Agreement does not constitute a commitment of funds or site approval, and that such commitment of funds or approval may occur only upon satisfactory completion of the environmental review. C. The parties agree that no HOME funds will be used for the project until the underwriting and subsidy layering review have been completed by the City or Developer. The City shall complete subsidy layering review prior to release of funding. D. The Developer must qualify all applicants to ensure they are eligible for the program under HUD regulations. Developer must determine income eligibility of each household using 24 CFR Part 5, commonly referred to as the "Section 8" method or "Part 5" method. Income eligibility can be determined using the CPU Income Eligibility Calculator on the HUD Exchange website. Developers should collect source documentation of income for all household members. IV. MONITORING: HOME Investment Partnerships (HOME) Program funds must be used in accordance with all applicable requirements specified at 24 CFR Part 92. Monitoring is a systematic review of programs and fund administration that helps HUD and the HOME Participating Jurisdiction (PJ) evaluate whether compliance with these requirements is achieved. Monitoring can also be used to evaluate program management, performance, and program outcomes. HOME Funding Agreement, Habitat for Humanity Page 6 The City will monitor for compliance which applies to HOME-assisted homeownership housing after project completion to ensure Developer compliance with HOME program requirements. It is used to improve program operations, financial management, and to ensure the program is meeting goals of the project. A. Desktop Financial and Performance Monitorin�: Desktop Monitoring is the primary method used by the City for financial and performance monitoring of all Developers. 1. The proposed development will not trigger compliance with Section 3 requirements or with Davis Bacon and related Acts. 2. Requests for Reimbursements (RFR) are the primary source for monitoring as they will include documentation of all expenditures, project performance report, financial reports, photos, invoices, and other documentation as required to maintain compliance with HOME-funded projects. 3. Deficiencies or concerns are addressed immediately and must be addressed by the Developer before any funds are reimbursed. B. On-site Monitorin�: Construction 1. Construction Projects are overseen at a minimum, on a weekly basis by a Construction Inspection Specialist (the "Inspector") with the Community Development (CD) department of the City of Lubbock. 2. The Inspector will ensure the project is progressing at an acceptable rate, an on-site supervisor or project manager is present, the project is in compliance with all building codes and safety regulations. V. PAYMENT A. For Construction projects, payments to the Developer are contingent upon the Draw Schedule. Reimbursement of expenses are based on percent of project completion (25%, 25%, 25%, 15%, and 10% completed). The Developer will have incurred the expense or paid for the expense and submit detailed source documentation to the City when requesting payment. B. Payment requests must be submitted with back-up documentation such as an invoice, inspection, photos, and/or other verification in support of all expenditures incurred and charged to the grant. C. Payments may be contingent upon certification of the Developer's financial management system in accordance with the standards specified in 2 CFR PART 200.302. D. Requests for Reimbursement (RFR) for the payment of eligible expenses shall be made against the budget amount specified in Paragraph I herein. HOME Funding Agreement, Habitat for Humanity Page 7 VI. NOTICES Written notices provided for under this Agreement shall be directed to the following contract representatives: City Karen Murfee, Director Community Development City of Lubbock P. O. Box 2000 Lubbock, TX 79457 Developer Christy Reeves Executive Director Lubbock Habitat for Humanity 3630 SOt" Street Lubbock, TX 79413 VII. GENERAL CONDITIONS A. Compliance The Developer covenants and warrants that it will comply with all applicable laws, ordinances, codes, rules and regulations of the state, local, and Federal governments, and all amendments thereto, including, but not limited to; Title 8 of the Civil Rights Act of 1968 PL. 90-284; Executive Order 11063 on Equal Opportunity and Housing, Section 3 of the Housing and Urban Development Act of 1968; Housing and Community Development Act of 1974, as well as all requirements set forth in 24 CFR Part 92 of the Home Investment Partnership Program. The Developer covenants and warrants that it will indemnify and hold the City forever free and harmless with respect to any and all damages whether directly or indirectly arising out of the provisions and maintenance of this contract. 2. The Developer further warrants and agrees to include or cause to be included the criteria and requirements of this section in every non-exempt subcontract in excess of $100,000. The Developer also agrees to take such action as the Federal, state or local government may direct to enforce aforesaid provisions. 3. Minority/Women's Businesses, Executive Orders 11625, 12432, and 12138 Under Executive Orders 11625, 12432, and 12138, the City must prescribe procedures acceptable to HUD for minority outreach programs to ensure that they are making concerted efforts to attract minority groups to the procurement process. The Developer agrees to assist the CITY to the greatest extent possible to meet the goals and objectives of this section. The Developer will submit, on an annual basis, a listing of all Minority Business Enterprise / Woman-owned businesses contracts awarded including dollar amount of the contract and how the business qualifies. 4. The regulations require that the following affirmative steps are taken to ensure Minority Business Enterprise/ Woman-owned businesses is afforded every opportunity to participate in generated contracts. i. Placing minorities and women on solicitation lists; ii. Assuring that Minority Business Enterprise. and Woman-owned businesses firms are solicited whenever they are potential sources; HOME Funding Agreement, Habitat for Humanity Page 8 iii. Dividing the total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority business enterprises, and women business enterprises; iv. Where the requirement permits, establishing delivery schedules that encourage participation by small and minority business enterprises, and women business enterprises; v. Using the services and assistance of the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and vi. Requiring the prime contractor, if subcontractors are to be let, to take all the same. B. Drug-Free Workplace: The Drug-Free Workplace Act of 1988 (41 U.S.C. 701, et seq.) and HUD's implementing regulations at 24 CFR Part 21. 1. Developers are required to provide a drug-free workplace by taking the following steps. Developers and third-party contractor/consultants failing to meet these requirements will be subject to penalties: 2. Publish and give a policy statement to all covered employees informing them that the unlawful manufacture, distribution, dispensation, possession or use of a controlled substance is prohibited in the covered workplace and specifying the actions that will be taken against employees who violate the policy. 3. Establish a drug-free awareness program to make employees aware of: a) the dangers of drug abuse in the workplace; b) the policy of maintaining a drug-free workplace; c) any available drug counseling, rehabilitation, and employee assistance programs; and d) the penalties that may be imposed upon employees for drug abuse violations. i. Notify employees that as a condition of employment on a Federal contract or grant, the employee must: a) abide by the terms of the policy statement; and b) notify the employer, within five (5) calendar days, if he or she is convicted of a criminal drug violation in the workplace. ii. Notify the contracting or granting agency within ten (10) days after receiving notice that a covered employee has been convicted of a criminal drug violation in the workplace. iii. Impose a penalty on or require satisfactory participation in a drug abuse assistance or rehabilitation program by any employee who is convicted of a reportable workplace drug conviction. iv. Make an ongoing, good faith effort to maintain a drug-free workplace by meeting the requirements of the Act. C. Regulations The Developer shall comply with all applicable Federal regulations and all provisions of this Agreement, which include compliance with of the Housing and Community Development Act of 1974, all rules, regulations, guidelines, and circulars promulgated by HOME Funding Agreement, Habitat for Humanity Page 9 HUD relating to the HOME Program, and other applicable laws and regulations , but are not limited to: • Federal Requirements, 24 CFR 5.105 • Title 24 CFR, Part 92 for HOME Investment Partnerships Program • Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, 2 CFR Part 200, Subparts A-F • Uniform Relocation Assistance and Real Property Acquisition for Federal and Federally Assisted Programs, 49 CFR Part 24 • Copeland "Anti-Kickback" Act, 29 CFR 3.5 and 3.6 • Civil Rights Act, Title VI, 24 CFR Part 1 • Fair Housing Act, Title VIII of the Civil Rights Act • Housing and Community Development Act, Section 104(b), 109 • Increasing Opportunities and Access for Disadvantaged Business under Executive Order 13170 (3 CFR 13170) • Rehabilitation Act Uniform Federal Accessibility Standards, Section 504 • The Architectural Barriers Act • The Americans With Disabilities Act (ADA) • The Age Discrimination Act • National Environmental Policy , 42 USC 4321 et seq, as amended • Lead Based Paint Poisoning Prevention Act and Lead Safe Housing Rule, 24 CFR Part 35 • Housing Quality Standards, 24 CFR 5.703 • HUD Environmental Criteria and Standards (24 CFR Part 51) • The Energy Policy and Conservation Act (Public Law 94-163) • Environmental Responsibilities, 24 CFR Part 58. • Fraud, Waste, and Abuse Reporting Requirements, 2 CFR 200.113 D. Independent Contractor Nothing contained in this Agreement is intended to, or shall be construed in any manner, is creating or establishing the relationship of employer/employee between the parties. The Developer shall at all times remain an independent contractor with respect to the Services to be performed under this Agreement. The City shall be exempt from payment of all Unemployrnent Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation insurance as the Developer is an independent contractor. E. Indemnity and Release DEVELOPER SHALL INDEMNIFY AND HOLD HARMLESS, TO THE FULLEST EXTENT PERMITTED BY LAW, THE CITY, AND CITY'S RESPECTIVE OFFICERS, EMPLOYEES, ELECTED OFFICIALS AND AGENTS, FROM AND AGAINST ANY AND ALL LOSSES, DAMAGES, CLAIMS OR LIABILITIES, OF ANY KIND OR NATURE, WHICH ARISE DIRECTLY OR 1NDIRECTLY, OR ARE RELATED TO, IN ANY WAY, MANNER OR FORM, THE ACTIVITIES CONTEMPLATED HEREUNDER. HOME Funding Agreement, Habitat for Humanity Page 10 DEVELOPER SHALL PAY TO THE CITY, THE CITY'S RESPECTIVE OFF'ICERS, EMPLOYEES, ELECTED OFFICIALS ANDIOR AGENTS, AS APPLICABLE, ALL ATTORNEYS' FEES INCURRED BY SUCH PARTIES 1N ENFORCING DEVELOPER'S INDEMNITY 1N THIS SECTION. THE CITY, AND ITS RESPECTNE OFFICERS, EMPLOYEES, ELECTED OFFICIALS AND AGENTS SHALL NOT BE LIABLE AND DEVELOPER HEREBY RELEASES THE CITY, AND ITS RESPECTNE OFFICERS, EMPLOYEES, ELECTED OFFICIALS AND AGENTS, FOR, FROM AND/OR AGAINST ANY LOSSES, DAMAGES, CLAIMS OR LIABILITIES TO DEVELOPER. THE INDEMNITY AND RELEASE PROVIDED HEREIN SHALL SURVIVE THE TERMINATION OR VOIDANCE OF THIS AGREEMENT. F. Right to Exercise The City reserves the right to exercise any right or remedy available to it by law, contract, equity, or otherwise, including without limitation, the right to seek any and all forms of relief in a court of competent jurisdiction. Further, the City shall not be subject to any arbitration process prior to exercising its unrestricted right to seek judicial remedy. The remedies set forth herein are cumulative and not exclusive, and may be exercised concurrently. To the extent of any conflict between this provision and another provision in, or related to, this document, the former shall control. G. Workers' Compensation The Developer shall provide Workers' Compensation insurance coverage for all of its employees involved in the performance of this Agreement. H. Insurance and Bonding The Developer shall carry sufficient insurance coverage to protect Agreement assets from loss due to theft, fraud and/or undue physical damage, and at a minimum, shall purchase a blanket fidelity bond covering all employees in an amount equal to cash advances from the City. The Developer shall comply with the bonding and insurance requirements of 24 CFR, Bonding and Insurance. I. Grantor Recognition The Developer shall insure recognition of the role of the Grantor agency in providing Services through this Agreement. All activities, facilities, and items utilized pursuant to this Agreement shall be prominently labeled as to funding source. In addition, the Developer will include a reference to the support provided herein in all publications made possible with funds made available under this Agreement. J. Amendments The City or Developer may amend this Agreement at any time, provided that such amendments make specific reference to this Agreement and are executed in writing, signed HOME Funding Agreement, Habitat for Humanity Page I 1 by a duly authorized representative of both organizations and approved by the City's governing body. Such amendments shall not invalidate this Ageement nor relieve or release the City or Developer from its obligations under this Agreement. The City may, at its discretion, amend this Agreement to conform with Federal, state or local governmental guidelines, policies and available funding amounts, or for other reasons. If such amendments result in a change in the funding, the scope of Services, or schedule of the activities to be undertaken as part of this Agreement, such modifications will be incorporated only by written amendment signed by both City and Developer. K. Suspension or Termination Either party may terminate this Agreement at any time by giving written notice to the other party of such termination and specifying the effective date thereof at least 30 days before the effective date of such termination. Partial termination of the Scope of Service in Paragraph I.A. above may only be undertaken with the prior approval of the City. In the event of any termination for convenience, all finished or unfinished documents, data, studies, surveys, maps, models, photographs, reports or other materials prepared by the Developer under this Agreement shall, at the option of the City, become the property of the City, and the Developer shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination. The City may also suspend or terminate this Agreement, in whole or in part, if the Developer fails to comply with any term of this Agreement, or with any of the rules, regulations or provisions referred to herein; and the City may declare the Developer ineligible for any further participation in the City's contracts, in addition to other remedies as provided by law. In the event there is probable cause to believe the Developer is in noncompliance with any applicable rules or regulations, the City may withhold up to fifteen percent (15%) of said Agreement funds until such time as the Developer is found to be in compliance by the City, or is otherwise adjudicated to be in compliance. The City may also terminate this Agreement in the event of an emergency or disaster, whether an act of God, natural or manmade, by giving twenty-four (24) hour notice. The City may give said notice verbally to Developer. Any expenditures incurred prior to receiving notice will be reimbursed; however, in no event shall the City pay any expenses incurred after notice of termination is received by Developer. VIII. ADMINISTRATIVE REQUIREMENTS A. Financial Mana ement 1. Accounting Standards: The Developer agrees to comply with 2 CFR Part 200 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. 2. Cost Principles: The Developer shall administer its program in conformance with OMB Circulars A-122, "Cost Principles for Non-Profit Organizations." These HOME Funding Agreement, Habitat for Humanity Page 12 principles shall be applied for all costs incurred whether charged on a direct or indirect basis. B. Documentation and Record-Keeping The Developer shall maintain all records required by the Federal regulations specified in 24 CFR Part 92.508, which are related to the activities to be funded under this Agreement. Such records shall include but not be limited to: 1. Records providing a full description of the Program assisted with HOME funds including location, form of HOME assistance, and the units or tenants assisted with HOME funds; 2. Source and application of funds for the Program, including supporting documentation in accordance with 2 CFR 200.302; 3. Records to document eligibility and permissibility of the Program costs, including the documentation of the actual HOME-eligible development costs of each HOME- assisted unit (through allocation of costs, if permissible under 24 CFR 92.205(d)) where HOME funds are used to assist less than all of the units in a multi-unit project; 4. Records demonstrating that the Program meets the minimum per-unit subsidy amount of 24 CFR 92.205(c), the maximum per-unit subsidy amount of 24 CFR 92.250(a), and the subsidy layering and underwriting evaluation adopted in accordance with 24 CFR 92.250(b); 5. Records demonstrating that each property meets the property standards of 24 CFR 92.251 at project completion for the entirety of the period of affordability; 6. Records demonstrating that each family is income-eligible in accordance with 24 CFR 92.203; 7. Records demonstrating that the Program meets the affordability and income targeting requirements of 24 CFR 92.252 for the required period. Records must be kept for each family assisted and for each property; 8. Records demonstrating that a site and neighborhood standards review was conducted for the Program, which includes new construction of affordable houses assisted under 24 CFR Part 92 to determine that the site meets the requirements 24 CFR 983.55(e)(2) and (3), in accordance with 24 CFR 92.202; 9. Records documenting compliance with the fair housing and equal opportunity components of the HOME Program; and 10. Financial records, records demonstrating adequate budget control, and other records as required and necessary to document compliance with 24 CFR Part 92. HOME Funding Agreement, Habitat for Humanity Page 13 C. Retention The Developer shall retain all records, as specified in 24 CFR 92.505, pertinent to expenditures incurred under this Agreement for a period of five (5) years after the termination of all activities funded under this Agreement. Records for non-expendable property acquired with funds under this Agreement shall be retained for five (5) years after final disposition of such property. Records regarding project requirements (24 CFR 92 subpart F) and 24 CFR 92 subpart H requirements that apply for the duration of the period of affordability (24 CFR 92.350, 92.351, and 92.358), as well as the written agreement and inspection and monitoring reports must be maintained for five (5) vears after the required period of affordability specified in 24 CFR 92.252 or 92.254, as applicable. Records for any displaced person must be kept for five (5) years after he/she has received final payrnent. Notwithstanding the above, if there is litigation, claims, audits, negotiations or other actions that involve any of the records cited and that have started before the expiration of the five-year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the five-year period, whichever occurs later. D. Client Data The Developer shall maintain client data demonstrating client eligibility in accordance with 24 CFR 92.203, Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility and demographic information. Such information shall be furnished to the City upon project completion and then annually throughout the period of affordability. E. Disclosure The Developer understands that client information collected under this Agreement is private, and the use or disclosure of such information, when not directly connected with the administration of the City's or Developer's responsibilities with respect to Services provided under this Agreement, or the Texas Open Records Act, is prohibited unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parendguardian, unless otherwise required by law. F. Propertv Records The Developer shall maintain real property inventory records which clearly identify properties purchased, improved or sold. Properties retained shall continue to meet eligibility criteria and affordability requirements of 24 CFR 92.252 or 92.254, as applicable. G. Close-Outs The Developer's obligation to the City shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets (including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the City), final close-out reports and determining the custodianship of records. HOME Funding Agreement, Habitat for Humanity Page 14 Affordability and resale/recapture requirements, as applicable continue through the term of those requirements in the individual agreements with home buyers. The Developer is required to continue monitoring those requirements until they expire. H. Audits & Inspections All Developer records with respect to any matters covered by this Agreement shall be made available to the City, at any time during normal business hours, as often as the City or grantor agency deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Developer within 30 days after receipt by the Developer. Failure of the Developer to comply with the above audit requirements will constitute a violation of this Agreement and may result in the withholding of future payments. The Developer hereby agrees to have an annual agency audit conducted in accordance with OMB Circular A-133. Developers meeting the OMB Circular A-133 requirements must submit their audits to the Federal Audit Clearing House within nine (9) months after the entity's fiscal year end date. I. Pro�ram Income The Parties hereby agree and acknowledge that to the extent that any Program Income is generated as a result of this Agreement including sale of newly constructed single-family units, it will immediately be returned to the City to be reinvested into affordable housing activities. J. Reportin� and Payment Procedures The City will pay to the Developer funds available under this Agreement, based upon information submitted by the Developer and consistent with any approved budget and City policy concerning payments. Payments will be made for eligible expenses actually incurred by the Developer, and not to exceed actual cash requirements. K. Procurement 1. Compliance If applicable, the Developer shall comply with current City policy concerning the purchase of equipment and shall maintain inventory records of all non-expendable personal property as defined by such policy as may be procured with funds provided herein. All program assets purchased with such funds (equipment, etc.) shall revert to the City upon termination of this Agreement. 2. CFR Standards The Developer shall procure all materials, property, or Services in accordance with the requirements of 2 CFR Part 200.318, General Procurement Standards, and shall subsequently follow Property Management Standards covering utilization and disposal of property. HOME Funding Agreement, Habitat for Humanity Page 15 3. Use and Reversion of Assets The use and disposition of real property and equipment under this Agreement shall be in compliance with applicable requirements of 2 CFR Part 200, which include but are not limited to the following: i. The Developer shall transfer to the City any unexpended HOME funds on hand and any accounts receivable attributable to the use of funds under this Agreement at the time of expiration, cancellation, or termination of this Agreement. ii. To the extent required by applicable HOME Program regulations, real property under the Developer's control that was acquired or improved, in whole or in part, with funds under this Agreement must meet requirements of the Program until the period of affordability has been reached. If the HOME- assisted real property is used in a manner not eligible under the HOME Program, the Developer shall, upon written request, pay the City an amount equal to the current fair market value of the property, including any non- federal funds received as program income, but have not been reinvested into Program for maintenance or repair of the property or other eligible activity under this Agreement. iii. In all cases in which equipment acquired, in whole or in part, with funds under this Agreement is sold, the proceeds shall be program income (prorated to reflect the extent to that funds received under this Agreement were used to acquire the equipment). Equipment not needed by the I7eveloper for activities under this Agreement shall be (a) transferred to the Developer for the HOME program or (b) retained after compensating the Developer an amount equal to the current fair market value of the equipment less the percentage of non- HOME funds used to acquire the equipment. IX. RELOCATION, REAL PROPERTY ACQUISITION AND ONE-FOR-ONE HOUSING REPLACEMENT The Developer agrees to comply with (a) the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA), and implementing regulations at 49 CFR Part 24, or Section 104(d) of the Housing and Community Development Act of 1974 (42 USC 4601 et seq.), which establish: (a) Requirements for the provision of replacement housing assistance, advisory services, and moving costs to persons displaced as a result of a program or project that received federal financial assistance; (b) Requirements for acquisitions, including the payrnent of t compensation pursuant to 49 CFR part 24, subpart B, and provisions for voluntary acquisitions set forth in 49 CFR 24.101; (c) Minimum requirements for temporary relocation of persons or businesses as a result of a project or program that receives federal financial assistance, as found in 49 CFR Part 24. The Developer also agrees to comply with applicable City ordinances, resolutions and policies concerning the displacement of persons from their residences. HOME Funding Agreement, Habitat for Humanity Page 16 X. PERSONNEL & PARTICIPANT CONDITIONS The Developer agrees to comply with the following regulations as applicable to project size and agency organization: A. Civil Ri ts Compliance The Developer agrees to comply and to require all subcontractors to comply with Title VI of the Civil Rights Act of 1964 as amended, Title VIII of the Civil Rights Act of 1968 as amended, Section 104(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and with Executive Order 11246 as amended by Executive Orders 11375 and 12086. 2. Nondiscrimination The Developer will not discriminate against any employee or applicant for employment because of race, color, creed, religion, ancestry, national origin, sex, disability or other handicap, age, marital/familial status, or status with regard to public assistance. The Developer will take affirmative action to ensure that all employment practices are free from such discrimination. Such employment practices include, but are not limited to, the following: hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The Developer agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting agency setting forth the provisions of this nondiscrimination clause. 3. Land Covenants This Agreement is subject to the requirements of Title VI of the Civil Rights Act of 1964 (P.L. 88-352) and 24 CFR 92.350. In regard to the sale, lease, or other transfer of land acquired, cleared or improved with assistance provided under this Agreement, the Developer shall cause or require a covenant running with the land to be inserted in the deed or lease for such transfer, prohibiting discrimination as herein defined, in the sale or subsequent sale of such land, or in any improvements erected or to be erected thereon, providing that the City and the United States are beneficiaries of and entitled to enforce such covenants. The Developer, in undertaking its obligation to carry out the program assisted hereunder, agrees to take such measures as are necessary to enforce such covenant, and will not itself so discriminate. 4. Section 504 The Developer agrees to comply with any Federal regulations issued pursuant to compliance with Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), which prohibits discrimination against the handicapped in any Federally-assisted program. The City shall provide the Developer with any guidelines necessary for compliance with that portion of the regulations in force during the term of this Agreement. HOME Funding Agreement, Habitat for Humanity Page 17 5. Reports The Developer shall maintain a report that documents the racelethnicity of its employees. The Developer shall provide the City a copy with said report upon execution of this Agreement. 6. Policies The Developer shall maintain current copies of its fair housing and equal opportunity policies. The Developer shall provide a copy of said policies to the City immediately upon request. 7. Affirmative Action i. Apnroved Plan The Qeveloper agrees that it shall be committed to carry out pursuant to the City's specifications an Affirmative Action Program in keeping with the principles as provided in the President's Executive Order 11246 of September 24, 1965. The City shall provide Affirmative Action guidelines to the Developer to assist in the formulation of such program. If requested by the City, the Developer shall submit a plan for an Affirmative Action Program for approval prior to the disbursement of funds. ii. Women-and Minority-Owned Businesses The Developer will use its best efforts to afford minority and women-owned business enterprises the maximum practicable opportunity to participate in the performance of this Agreement. As used in this Agreement, the term "minority and female business enterprise" means a business at least fifty-one percent (51 %) owned and controlled by minority group members or women. For the purpose of this definition, "minority group members" are Afro-Americans, Spanish-speaking, Spanish-surnamed or Spanish-heritage Americans, Asian- Americans, and American Indians. The Developer may rely on written representations by businesses regarding their status as minority and female business enterprises in lieu of an independent investigation. B. Access to Records The Developer shall furnish and cause each of its own Developers or subcontractors to furnish all information and reports required hereunder and will permit access to its books, records and accounts by the City, HUD or its agent, or other authorized Federal officials for purposes of investigation to ascertain compliance with the rules, regulations and provisions stated herein. C. Notifications The Developer will send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, a notice, to be provided by the agency contracting officer, advising the labor union or worker's representative of the Developer's commitments hereunder, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. HOME Funding Agreement, Habitat for Humanity Page 18 D. EEOIAA Statement The Developer will, in all solicitations or advertisements for employees placed by or on behalf of the Developer, state that it is an Equal Opportunity or Affirmative Action employer. E. Subcontract Provisions The Developer will include the provisions of Paragraphs X.A., Civil Rights, in every subcontract or purchase order, specifically or by reference, so that such provisions will be binding upon each of its own Developers or subcontractor. F. Employment Restrictions 1. Prohibited Program The Developer is prohibited from using funds provided herein or personnel employed in the administration of the program for: political activities; sectarian or religious activities; and lobbying. political patronage, and nepotism activities. 2. Labor Standards The Developer agrees to comply, as applicable, with the requirements of the Secretary of Labor in accordance with the Davis-Bacon Act as amended, the provisions of Contract Work Hours and Safety Standards Act, the Copeland "Anti- Kickback" Act (40 U.S.C. 276a-276a-5; 40 USC 327 and 40 USC 276c) and all other applicable Federal, State and local laws and regulations pertaining to labor standards insofar as those acts apply to the performance of this Agreement. The Developer shall maintain documentation which demonstrates compliance with hour and wage requirements of this part. Such documentation shall be made available to the City for review upon request. The Developer agrees that, except with respect to the rehabilitation or construction of residential property containing less than twelve(12) units, all contractors engaged under contracts in excess of $2,000.00 for construction, renovation or repair work financed in whole or in part with assistance provided under this Agreement, shall comply with Federal requirements adopted by the City pertaining to such contracts and with the applicable requirements of the regulations of the Department of Labor, under 29 CFR Parts 1, 3, 5 and 7 governing the payment of wages and ratio of apprentices and trainees to journey workers; provided, that if wage rates higher than those required under the regulations are imposed by state or local law, nothing hereunder is intended to relieve the Developer of its obligation, if any, to require payment of the higher wage. The Developer shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of this paragraph. XI. FRAUD, WASTE, AND ABUSE REPORTING REOUIREMENTS Pursuant to 2 CFR 200.113, the Developer must disclose, in writing, any violations of Federal criminal law involving fraud, bribery, or gratuity violations potentially affecting the Federal award. Such disclosures must be made to the Federal awarding agency or the City in a timely HOME Funding Agreement, Habitat for Humanity Page 19 manner. The Developer acknowledges that failure to make required disclosures may result in remedies described under 2 CFR 200.339, including suspension and debarment. The Developer shall ensure that all relevant staff and contractors are aware of and comply with this reporting requirement. XII. "SECTION 3" CLAUSE A. Compliance 1. Compliance with the provisions of Section 3, the regulations set forth in 24 CFR 135, and all applicable rules and orders issued hereunder prior to the execution of this Agreement, shall be a condition of the Federal financial assistance provided under this Agreement and binding upon the City, the Developer and any of the Developer's Developers and subcontractors. Failure to fulfill these requirements shall subject the City, the Developer and any of the Developer's Developers and subcontractors, their successors and assigns, to those sanctions specified by the Agreement through which Federal assistance is provided. The Developer certifies and agrees that no contractual or other disability exists which would prevent compliance with these requirements. 2. The Developer further agrees to comply with these "Section 3" requirements and to include the following language in all subcontracts executed under this Agreement: "The work to be performed under this Agreement is a project assisted under a program providing direct Federal financial assistance from HUD and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701. Section 3 requires that, to the greatest extent feasible, opportunities for training and employment be given to low- and very low-income residents of the project area, and contracts for work in connection with the project be awarded to business concerns that provide economic opportunities for low- and very low-income persons residing in the metropolitan area in which the project is located. " 3. The Developer further agrees to ensure that opportunities for training and employrnent arising in connection with a housing rehabilitation (including reduction and abatement of lead-based paint hazards), housing construction, or other public construction project are given to low- and very low-income persons residing within the metropolitan area in which the HOME Program-funded project is located; where feasible, priority should be given to low- and very low-income persons within the service area of the project or the neighborhood in which the project is located, and to low- and very low-income participants in other HUD programs; and award contracts for work undertaken in connection with a housing rehabilitation (including reduction and abatement of lead- based paint hazards), housing construction, or other public construction project are given to business concerns that provide economic opportunities for low- and very low- income persons residing within the metropolitan area in which the HOME Program- funded project is located; where feasible, priority should be given to business concerns which provide economic opportunities to low- and very low-income residents within HOME Funding Agreement, Habitat for Humanity Page 20 the service area or the neighborhood in which the project is located, and to low- and very low-income participants in other HUD programs. 4. The Developer certifies and agrees that no contractual or other legal incapacity exists which would prevent compliance with these requirements. B. Notifications The Developer agrees to send to each labor organization or representative of workers with which it has a collective bargaining agreement or other contract or understanding, if any, a notice advising said labor organization or worker's representative of its commitments under this Section 3 clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training. C. Subcontracts The Developer will include this Section 3 clause in every subcontract and will take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the grantor agency. The Developer will not subcontract with any entity where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR 135 and will not let any subcontract unless the entity has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. XIII. CONDUCT A. Assi n�y The Developer shall not assign or transfer any interest in this Agreement without the prior written consent of the City thereto; provided, however, that claims for money due or to become due to the Developer from the City under this Agreement may be assigned to a bank, trust company, or other financial institution without such approval. Notice of any such assignment or transfer shall be furnished promptly to the City. B. Subcontracts 1. Approvals The Developer shall not enter into any subcontracts with any agency or individual in the performance of this Agreement without the written consent of the City prior to the execution of such agreement. 2. Monitorin� The Developer will monitor all subcontracted services on a risk analysis basis to assure contract compliance. Results of monitoring efforts shall be summarized in written reports and supported with documented evidence of follow-up actions taken to correct areas of noncompliance. 3. Content The Developer shall cause all of the provisions of this Agreement in its entirety to be included in and made a part of any subcontract executed in the performance of this Agreement. HOME Funding Agreement, Habitat for Humanity Page 21 4. Selection Process The Developer shall undertake to ensure that all subcontracts let in the performance of this Agreement shall be awarded on a fair and open competition basis. Executed copies of all subcontracts shall be forwarded to the City along with documentation concerning the selection process. 5. Suspension / Disbarment The Developer shall not enter into any subcontracts with an agency, business or individual that has been suspended, disbarred or otherwise excluded from federal grants. The Developer shall maintain records demonstrating that it has reviewed potential subcontractors against the debarred and excluded list prior to committing any grant funds to a subcontract. XIV. HATCH ACT The Developer agrees that no funds provided, nor personnel employed under this Agreement, shall be in any way or to any extent engaged in the conduct of political activities in violation of Chapter 15 of Title V United States Code. XV. CONFLICT OF INTEREST A. The Developer shall maintain written codes of conduct that govern the performance of its employees engaged in the award and administration of contracts. Said codes of conduct shall be in compliance with 2 CFR Part 200.112. B. Further, Developer covenants that it presently has no financial interest, direct or indirect, which would conflict in any manner or degree with the performance of Services required under this Agreement. C. The Developer further covenants that, in the performance of this Agreement, no person having such a financial interest shall be employed or retained by the Developer hereunder. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the City, or of any designated public agencies or Developers which are receiving funds under the HOME Entitlement program. XVI. LOBBYING CERTIFICATION The Developer hereby certifies that: A. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; HOME Punding Agreement, Habitat for Humanity Page 22 B. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; C. It will require that the language of paragraph (D) of this certification be included in the award documents for all sub awards at all tiers (including subcontracts, sub grants, and contracts under grants, loans, and cooperative agreements) and that all Developers shall certify and disclose accordingly; and D. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U. S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. XVII. COPYRIGHT If this Agreement results in any copyrightable material or inventions, the City and/or grantor agency reserves the right to royalty-free, non-exclusive and irrevocable license to reproduce, publish or otherwise use and to authorize others to use, the work or materials for government purposes. XVIII. RELIGIOUS ORGANIZATION The Developer agrees that funds provided under this Agreement will not be utilized for religious activities, to promote religious interests, or for the benefit of a religious organization in accordance with the Federal regulations specified in 24 CFR 92.257. XIX. ENVIRONMENTAL CONDITIONS A. Air and Water The Developer agrees to comply with the following requirements insofar as they apply to the performance of this Agreement: 1. Clean Air Act, 42 U.S.C., 7401, et seq. 2. Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251, et seq., as amended, 1318 relating to inspection, monitoring, entry, reports, and information, as well as other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder. 3. Environmental Protection Agency (EPA) regulations pursuant to 40 C.F.R., Part 50, as amended. HOME Funding Agreement, Habitat for Humanity Page 23 B. Flood Disaster Protection In accordance with the requirements of the Flood Disaster Protection Act of 1973 (42 USC 4001), the Developer shall assure that, for activities located in an area identified by FEMA as having special flood hazards, flood insurance under the National Flood Insurance Program is obtained and maintained as a condition of financial assistance for acquisition or construction purposes (including rehabilitation). C. Lead-Based Paint The Developer agrees that any construction or rehabilitation of residential structures with assistance provided under this Agreement shall be subject to HUD Lead-Based Paint Regulations at 24 CFR 92.355, and 24 CFR Part 35 as applicable. D. Asbestos The Developer agrees to comply with the Texas Asbestos Health Protection Act set forth at Article 4477-3a Section 12 of the Texas Civil Statutes and the National Emission Standard for Asbestos Regulations set forth at 40 CFR Part 61. E. Historic Preservation The Developer agrees to comply with the Historic Preservation requirements set forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures set forth in 36 CFR, Part 800, Advisory Council on Historic Preservation Procedures for Protection of Historic Properties, insofar as they apply to the performance of this Agreement. In general, this requires concurrence from the State Historic Preservation Officer for all rehabilitation and demolition of historic properties that are fifty (50) years old or older or that are included on a Federal, state, or local historic property list. XX. SEVERABILITY If any provision of this Agreement is held invalid, the remainder of the Agreement shall not be affected thereby, and all other parts of this Agreement shall nevertheless be in full force and effect. XXI. SECTION HEADINGS AND SUBHEADINGS The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement. XXII. WAIVER The Developer's failure to act with respect to a breach by the Developer does not waive its right to act with respect to subsequent or similar breaches. The failure of the Developer to exercise or enforce any right or provision shall not constitute a waiver of such right or provision. HOME Funding Agreement, Habitat for Humanity Page 24 XXIII. CHAPTER 2270, SUBTITLE F, TITLE 10, TEXAS GOVERNMENT CODE The Developer warrants that it is in compliance with Chapter 2270, Subtitle F, Title 10 of the Texas Government Code by verifying that it does not boycott Israel, and that it will not boycott Israel during the term of this Agreement. XXIV. ENTIRE AGREEMENT This Agreement constitutes the entire Agreement between the Developer and the Developer for the use of funds received under this Agreement and it supersedes all prior or contemporaneous communications and proposals, whether electronic, oral, or written between the Developer and the Developer with respect to this Agreement. IN WITNESS �IEREOF, THE PARTIES HAVE EXECUTED AND ENTER INTO THIS AGREEMENT ON THE EFFECTIVE DATE [Signature Page to FollowJ HOME Funding Agreement, Habitat for Humanity Page 25 SIGNATURES FOR: CITY aF LUBBOCK n � . CHRISTY M TIN Z-G CIA, MAYOR PRO TEM FCIR: LUBBUCK HABITAT FUR HUMANITY CHRISTY REEVES, EXECUTIVE DIRECTOR FED. I.D. # 75-2408749 ATT�ST: rtney Paz, City Sec APPROVED AS TO CONTENT: Karen Murfee, Commumty Develop nt Director APPROVED AS TO FORM: . _ elli Leisure, Senior Assistant City Attorney HOME Funding Agreement, Habitat for Humanity Page 26