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HomeMy WebLinkAboutResolution - 2017-R0427 - CD Funding Agreement - 11/16/2017Resolution No. 2017-RO427 Item No. 6.14 November 16, 2017 RESOLUTION 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, a Community Development Funding Agreement and related documents with the Community Housing Resources Board, for funding to finance the operation and administration of a Community Housing Development Organization Program with such funding being passed through the Department of Housing and Urban Development. Said Community Development Funding Agreement 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 November 16, 2017 DANIEL M. POPE, MAYOR ATTEST: Q--Zzu-� '- I k Reb cca Garza, City Sec •eta APPROVED AS TO CONTENT: l It Justi�ruitt, 4ssistant(City Attorney :ES. Agreement — Community Development Funding Agreement — CHDO Program 25, 2017 1 Resolution No. 2017-RO427 COMMUNITY DEVELOPMENT HOME INVESTMENT PARTNERSHIP PROGRAM FUNDING AGREEMENT This Community Development HOME Investment Partnership Program Funding Agreement (the "Agreement") is made by and between the City of Lubbock, a State of Texas home rule municipal corporation (the "City") and the Community Housing Resource Board (CHRB), a State of Texas non-profit organization (the "Grantee"), (each a "Party," and collectively the "Parties") acting by and through the Parties' representative officers and officials, and is by the Parties on November 16, 2017 (the "Effective Date"). RECITALS WHEREAS, the City is obligated to do and perform certain services in its undertaking of the HOME Investment Partnership Program (the "HOME"), pursuant to Titles I and II of the Cranston- ZD Gonzales National Affordable Housing Act; and WHEREAS, the Grantee operates as a non-profit organization offering services to families and individuals throughout Lubbock County, Texas, and the Grantee is recognized as a Community Housing Development Organization (a "CHDO") by the Department of Housing and Urban Development ("HUD"); and WHEREAS, the Grantee and the services it provides have been found to meet the criteria for funding under 24 CFR Part 92; and WHEREAS, the Grantee proposes to provide a CHDO Project and Operations program which will provide funds to enhance its ability to provide administrative funds to operate CHDO programs and enhance its ability to provide affordable housing for low -to -moderate income individuals (the "Program"); and WHEREAS, the Grantee's services benefit residents in and around Lubbock, Texas and constitute a valuable public service, and the City Council of the City (the "City Council") has declared the services provided by the Grantee to be a public purpose; and WHEREAS, the accomplishment of the above public purpose is the predominate purpose of this Agreement; and WHEREAS, the continuing supervision by the City and State together with statutory and contractual requirements provide sufficient assurance that the public purpose of this Agreement will be accomplished; and WHEREAS, the City Council has found that the Grantee has the special expertise, knowledge, and experience necessary for the operation of the 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: Community Housing Resource Board CHDO Project/ Operations 1 2017-18 HOME Funding Agreement Page 1 AGREEMENT Article 1. SCOPE OF SERVICE A. The City's Responsibilities 1. The City agrees to provide the Grantee with funding from HUD in an amount not to exceed four hundred nine thousand thirty-five dollars and thirty-seven cents ($409,035.37) to be distributed and used according to the provisions of this Agreement. 2. The Funding will be limited to the Grantee's performance of the Program, including the satisfaction of expenses incurred by the Grantee in its performance of the Program. 3. The City's awarding of the Funding under this Agreement is contingent upon the City's receipt of adequate funds to meet the City's liabilities under this Agreement. If adequate funds are not made available to the City so that it cannot award the Funding, then the City shall notify the Grantee in writing within a reasonable time after such fact is determined, the City shall terminate this Agreement, and the City will not be directly or indirectly liable for failure to award the Funding to the Grantee under this Agreement. 4. The City shall not be liable to the Grantee for any cost incurred by the Grantee which has been paid to the Grantee, which is subject to be paid to the Grantee, which has been reimbursed to the Grantee, or which is subject to reimbursement to the Grantee by any source other than the City or the Grantee. 5. The City shall not be liable for any cost incurred by the Grantee which is not an allowable cost as set forth in this Agreement or under 24 CFR 92 Subpart E. 6. The City shall not be liable to the Grantee for any cost incurred by the Grantee or for any performance rendered by the Grantee which is not strictly in accordance with the terms of this Agreement. 7. The City shall not be liable to the Grantee for any cost incurred by the Grantee in the performance of this Agreement which has not been billed to the City by the Grantee within sixty (60) days following the termination of this Agreement. 8. The City shall not be liable for any cost incurred or performance rendered by the Grantee before the commencement or after termination of this Agreement. 9. The City may, at its sole discretion and convenience, review any work specifications prior to the beginning of a procurement process under this Agreement, and the City may inspect any construction for compliance with work specifications prior to the release of the Funding. B. The Grantee's Responsibilities 1. The Grantee will be responsible for administering the Program in a manner satisfactory to the City and in compliance with this Agreement and with any and all statutory standards related to the Funding. Community Housing Resource Board CHDO Project / Operations 1 2017-18 HOME Funding Agreement Page 2 2. The Grantee certifies that all of its activities carried out for the Program through the Funding will satisfy 24 CFR Part 92, including, but not limited to: HOME's eligible activities under 24 CFR Part 92 Subpart E; the affordability requirements of 24 CFR 92.252 or 92.254; the applicable uniform administrative requirements described in 24 CFR 92.505; the project requirements in 24 CFR Part 92 Subpart F; all Federal laws and regulations described in 24 CFR Part 92 Subpart H, including responsibilities for environmental review in 24 CFR 92.352 and the intergovernmental review process in 24 CFR 92.359; and, the affirmative marketing responsibilities specified in 24 CFR 92.351. The Grantee agrees to repay any and all of the Funding that does not satisfy the regulations required under this provision. 3. The Grantee shall perform all activities related to the Program in accordance with its budget; all applicable laws and regulations; and, with the assurance, certifications, and all other terms, provisions, and requirements set forth in this Agreement. 4. Upon the City's request while this Agreement is in effect, the Grantee shall submit to the City any and all reports, documents, or information on the Grantee's performance of the Funding or the Program contemplated under this Agreement. 5. In addition to the limitations on liability otherwise specified in this Agreement, it is expressly understood and agreed to by the Parties that if the Grantee fails to submit to the City in a timely and satisfactory manner any reports, documents, or information requested by the City under this Agreement, the City may, at its sole discretion, withhold all, or any part of, the Funding. If the City withholds all, or any part of, the Funding, it shall notify the Grantee in writing of its decision and the reasons therefor. Any Funding withheld pursuant to this paragraph may be held by the City until such time as the obligations for which the Funding is being withheld is fulfilled by the Grantee to the satisfaction of the City. 6. The Grantee shall refund to the City any Funding that has been paid to the Grantee by the City for which the City determines is a result of overpayment of the Funding to the Grantee, or for which the City determines any of the Funding has not been spent by the Grantee strictly in accordance with the terms of this Agreement. Such refund shall be made by the Grantee to the City within thirty (30) working days after such refund is requested by the City. 7. The Grantee agrees that all living units acquired and rehabilitated under the Program shall be made available exclusively to eligible low and moderate income families whose gross household income does not exceed the income eligibility requirements established by HUD. 8. The Grantee shall submit to the City a request for an environmental assessment to be prepared and approved on individual construction sites prior to the beginning of a project and prior to the acquisition of any single-family home. 9. The Grantee shall submit to the City a request for a review of all work specifications prior to the beginning of the procurement process. 10. The Grantee shall notify the City upon interim draws and upon work completion for inspection by the City's Community Development Department (the "Department") prior to the request Community Housing Resource Board CHDO Project / Operations 1 2017-18 HOME Funding Agreement Page 3 for any Funding dispersal and approval by the Department to allow the home buyer to move into home. 11. The Grantee will have Match and non -HOME funds ready and available prior to the start of any project, if applicable. Failure to have Match and non -HOME funds ready and available may delay or cancel such project. 12. The Grantee will sell houses to eligible low income home buyers who qualify for a mortgage loan. 13. The Grantee agrees that all contracts, agreements, and deed of trusts with homebuyers will include affordability requirements as defined in the HOME regulations. 14. The Grantee agrees that any interests or assets obtained with the Funding shall revert back to the City in the event that the Grantee dissolves, files for bankruptcy, or goes out of business for any reason. C. Grantee's Match The HOME funds used for administrative and planning costs pursuant to 24 CFR 92.207, the CHDO operating expenses used pursuant to 24 CFR 92.208, and the capacity building used pursuant to 24 CFR 92.300(b), are not required to be matched by the Grantee. D. Program Proceeds As allowed in 24 CFR 92.300(a) (2), project proceeds, if applicable, shall be retained by the Grantee and used to reinvest all Funding into additional properties for the Program except to pay for twenty-five percent (25%) return of investment to City, to pay for insurance and maintenance of properties, and to pay for up to ten percent (10%) of project proceeds for administration. E. Levels of Accomplishment In addition to the normal administrative services required as part of this Agreement, the Grantee agrees to provide the following levels of program services in its performance of the Program: Activi Timeline Accomplishments Administer HOME October 1, 2017 — Complete programs from previous Elderly Rental Program September 30, 2018 allocations and begin FY 2016-17 Program Oversee Rental Properties October 1, 2017 — Continue offering duplex units for seniors September 30, 2018 and disabled and maintain HOME rents through affordability Period F. Staffing Sta Member Title Maggie Trejo Executive Director June Rangel Administrative Assistant Edelmira `Bibi" Licon Office Clerk Community Housing Resource Board CHDO Project / Operations 1 2017-18 HOME Funding Agreement Page 4 G. Performance Monitoring 1. General Monitoring. The City will monitor the Grantee's performance under this Agreement in order to ensure that the Grantee complies with the terms of this Agreement and all other applicable laws and regulations related to this Agreement and the Funding provided through this Agreement (the "Monitoring"). The Monitoring will be based on a risk analysis and a monitoring plan developed at the beginning of the fiscal year, and will take place on a monthly and quarterly basis as described below. Substandard performance as determined by the City will constitute non-compliance with this Agreement. If action to correct such substandard performance is not taken by the Grantee within a reasonable period of time after being notified by the City in writing, the City may suspend or terminate this Agreement. 2. On -site Monitoring. The number of on -site Monitoring visits will be determined by the Development. The City will send a Monitoring notification letter sent to the Grantee at least fifteen (15) days before a Monitoring visit. The City will send Monitoring report letter to the Grantee within thirty (30) days of on -site Monitoring visit that will identify the findings of the Monitoring visit. The Grantee must provide a written response to the Monitoring report within thirty (30) days that describes how the Grantee will resolve the issues raised by the City in the Monitoring report. The Grantee must confirm receipt of the Monitoring report within thirty (30) days if no actionable issues were identified in the Monitoring report. Article 2. TIME OF PERFORMANCE Services of the Grantee shall start on the first (lst) day of October, 2017, and end on the thirtieth (30th) day of September, 2018 (the "Term"). The Term and the provisions of this Agreement shall be extended to cover the period of affordability required as specified under 24 CFR 92.254 and any additional time period during which the Grantee remains in control of the Funding or other assets, including income from the Program. Article 3. BUDGET The Funding made available to the Grantee under this Agreement shall be specifically drawn from the sources listed in this section (the `Budget"). The Funding made available to the Grantee under this Agreement shall be drawn from several fiscal year allocations by HUD to the City. In the budget listed below, the fiscal year of a HUD allocation to the City is listed to the left of the funding under that allocation that is made available to the Grantee for the Project or for CHDO operation under this Agreement. The Funding made available to the Grantee under this Agreement shall be directly linked to the specific funding year and amount listed in this section. For the Project For CHDO Operations FY2013 - $ 41,055.67 FY2015 - $27,000 - - FY2014 - $106,533.70 FY2016 - $26,500 FY2015 - $101,946.00 Total: $53,500 for Operations FY2016 - $106,000.00 Total: $355,535.37 for the Project Article 4. PAYMENT A. The Payment The Funding shall be disbursed on a monthly basis based on the Grantee's submission to the City of a written request for reimbursement, with such request being in a form acceptable to the City Community Housing Resource Board CHDO Project / Operations 1 2017-18 HOME Funding Agreement Page 5 (the "Payment"). Expenses eligible for Payment to the Grantee by the City shall be those expenses that have been incurred or paid for by the Grantee prior to the Grantee's submission to the City of a request for Payment. In its request to the City for the Payment, the Grantee shall submit detailed documentation to the City that clearly shows the source of the expenses incurred or paid for by the Grantee that are the subject of the Grantee's request for Payment. Such source documentation includes, but is not limited to, time sheets, paycheck stubs, receipts, invoices, billing statements, or other verification in support of all expenditures incurred by the Grantee in its performance of the Program. B. Not To Exceed The total amount of the Funding to be paid by the City under this Agreement shall not exceed four hundred nine thousand thirty-five dollars and thirty-seven cents ($409,035.37) to be distributed and used according to the Budget, with three hundred fifty-five thousand five hundred thirty-five dollars and thirty-seven cents ($355,535.37) being available for the Project and fifty-three thousand five hundred dollars ($53,500) being available for CHDO operation. Any drawdowns on the Payment and any expenses for the general administration of the Program shall be made against the line item budgets specified in this Agreement and in accordance with the Grantee's performance of Program. C. 24 CFR 84 Every Payment may be contingent upon certification of the Grantee's financial management system in accordance with the standards specified in 24 CFR 84. Article 5. NOTICES Communication and details concerning this Agreement shall be directed to the following: For the City: Karen Murfee City of Lubbock P.O. Box 2000 Lubbock, TX 79457 Article 6. SPECIAL CONDITIONS None. For the Grantee: Maggie Trejo Community Housing Resource Board 1628 Main Street Lubbock, TX 79401 Article 7. GENERAL CONDITIONS A. General Compliance 1. The Grantee agrees to comply with the requirements of 24 CFR Part 570 (the HUD regulations concerning Community Development Block Grants (CDBG)), including subpart J and subpart K; except that: (1) the Grantee does not assume the recipient's environmental responsibilities described in 24 CFR 570.604; and, (2) the Grantee does not assume the recipient's responsibility for initiating the review process under the provisions of 24 CFR Part 52. 2. The Grantee also agrees to comply with all other applicable Federal, State and local laws, regulations, and policies governing the Funding. The Grantee further agrees to utilize the Funding to supplement, rather than supplant, funds otherwise available. Community Housing Resource Board CHDO Project / Operations 1 2017-18 HOME Funding Agreement Page 6 3. The Grantee shall comply with all applicable Federal laws, regulations, and requirements and all provisions of this Agreement, which include compliance with the provisions of the HCD Act and all rules, regulations, guidelines, and circulars promulgated by the various Federal departments, agencies, administrations, and commissions relating to the CDBG Program. The applicable laws and regulations include, but are not limited to: 24 CFR Part 570; 24 CFR Parts 84 and 85; 2 CFR Part 200; OMB Circular A-128, "Audits of State and Local Governments;" The Davis -Bacon Fair Labor Standards Act; The Contract Work Hours and Safety Standards Act of 1962; Copeland "Anti -Kickback" act of 1934; Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA); Title VI of the Civil Rights Act of 1964, (Public Law 88-352 implemented in 24 CFR Part 1); Fair Housing Act, Title VIII of the Civil Rights Act of 1968 (Public Law 90-234 and Executive Order 11063 as amended by Executive Order 12259 (implemented in 24 CFR Part 107); Section 104(b) and 109 of the HCD Act of 1974; Section 3 of the Housing and Urban Development Act of 1968; Equal employment opportunity and minority business enterprise regulations established in 24 CFR Part 570.904; Non-discrimination in employment, established by Executive Order 11246 (as amended by Executive Orders 11375 and 12086); Section 504 of the Rehabilitation Act of 1973 Uniform Federal accessibility Standards; The Architectural Barriers Act of 1968; The Americans With Disabilities Act (ADA) of 1990; The Age Discrimination Act of 1975, as amended; National Environmental Policy of 1969 (42 USC 4321 et seq.), as amended; Lead Based paint regulations established in 24 CFR Parts 35, 570.608, and 24 CFR 982.401; Asbestos guidelines established in CPD Notice 90-44; HUD Environmental Criteria and Standards (24CFR Part 51); The Energy Policy and Conservation Act (Public Law 94-163) and 24 CFR Part 39; Historic Preservation Act of 1966, as amended, and related laws and Executive Orders; Executive Order 11988, floodplain management, 1977 (42 FR 26951 et seq.); and, Flood Disaster protection Act of 1973. B. "Independent Contractor" Nothing contained in this Agreement is intended, or shall be construed in any manner, to create or establish the relationship of employer and employee between the Parties. The Grantee 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 Unemployment Compensation, FICA, retirement, life, medical insurance, and Workers' Compensation insurance as the Grantee is an independent contractor. C. Indemnity and Release 1. THE GRANTEE SHALL INDEMNIFY AND HOLD HARMLESS, TO THE FULLEST EXTENT PERMITTED BY LAW, THE CITY, AND THE 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 INDIRECTLY, OR ARE RELATED, IN ANY WAY, MANNER, OR FORM, TO THE ACTIVITIES CONTEMPLATED HEREUNDER. 2. THE GRANTEE SHALL PAY TO THE CITY, THE CITY'S RESPECTIVE OFFICERS, EMPLOYEES, ELECTED OFFICIALS, AND OR AGENTS, AS APPLICABLE, ALL ATTORNEYS' FEES INCURRED BY ENFORCING THE GRANTEE'S INDEMNITY HEREIN. Community Housing Resource Board CHDO Project / Operations 1 2017-18 HOME Funding Agreement Page 7 3. THE CITY, AND ITS RESPECTIVE OFFICERS, EMPLOYEES, ELECTED OFFICIALS, AND AGENTS SHALL NOT BE LIABLE, AND THE GRANTEE HEREBY RELEASES THE CITY, AND ITS RESPECTIVE OFFICERS, EMPLOYEES, ELECTED OFFICIALS, AND AGENTS, FOR, FROM, AND AGAINST ANY LOSSES, DAMAGES, CLAIMS, OR LIABILITIES TO THE GRANTEE. 4. THE INDEMNITY AND RELEASE PROVIDED HEREIN SHALL SURVIVE THIS AGREEMENT. D. 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 Agreement, the former shall control. E. Workers' Compensation The Grantee shall provide Workers' Compensation insurance coverage for all of its employees involved in the performance of this Agreement. F. Insurance and Bonding The Grantee shall carry sufficient insurance coverage to protect Program assets from loss due to theft, fraud, or undue physical damage, and as a minimum, shall purchase a blanket fidelity bond covering all employees in an amount equal to cash advances from the City. The Grantee shall comply with the bonding and insurance requirements of 24 CFR 84. G. Grantor Recognition The Grantee 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 the Funding source. In addition, the Grantee will include a reference to the Funding in all publications made possible under this Agreement. H. Amendments 1. The City or the Grantee may amend this Agreement at any time, provided that such amendments make specific reference to this Agreement, are executed in writing, signed by a duly authorized representative of both Parties, and approved by the City Council. Such amendments shall neither invalidate this Agreement nor relieve or release the City or the Grantee from its obligations under this Agreement. 2. The City may, in its discretion, amend this Agreement to conform with Federal, State, or local governmental guidelines, policies, and available funding amounts, or for any other reason. If such amendments result in a change in the Funding, the scope of services, or the schedule of the activities to be undertaken as part of this Agreement, such modifications will be incorporated only by written amendment signed by both Parties. Community Housing Resource Board CHDO Project / Operations 1 2017-18 HOME Funding Agreement Page 8 I. Suspension or Termination 1. 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 thirty (30) days before the effective date of such termination. Partial termination of this Agreement 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 Grantee under this Agreement shall, at the option of the City, become the property of the City, and the Grantee shall be entitled to receive just and equitable compensation for any work completed on such documents or materials prior to the termination. 2. The City may suspend or terminate this Agreement, in whole or in part, if the Grantee fails to comply with any term of this Agreement, or with any of the rules, regulations, or provisions referred to herein. Upon such failure of the Grantee, the City may declare the Grantee ineligible for any further participation in the City's contracts, in addition to other remedies as provided by law. If the City reasonably believes that the Grantee is in noncompliance with any requirement of this Agreement, then the City may withhold up to fifteen percent (15%) of the Funding until such time as the Grantee is found to be, or is otherwise adjudicated, to be in compliance. 3. The City may 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 the Grantee. Any expenditure 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 the Grantee. Article S. ADMINISTRATIVE REQUIREMENTS A. Financial Management 1. Accounting Standards. The Grantee agrees to comply with 24 CFR 84, to utilize adequate internal controls, and to maintain necessary source documentation for all costs incurred under this Agreement. 2. Cost Principles. The Grantee shall administer its program in conformance with 2 CFR Part 200, which shall be applied to all direct or indirect costs incurred by the Grantee under this Agreement. B. Documentation and Record -Keeping 1. Records Maintenance. All of the Grantee's records related to this Agreement shall be kept according to the standards and regulations in 24 CFR Part 570, with such records including, but not being limited to: records providing a full description of each activity undertaken by the Grantee under this Agreement; records demonstrating that each activity undertaken under this Agreement by the Grantee meets the National Objective of the CDBG program of benefiting low/moderate income persons; records that determine the eligibility of Grantee's activities related to this Agreement; records that document the acquisition, improvement, use, or disposition of real property acquired or improved with CDBG assistance under this Agreement; records that document the Grantee's compliance with the fair housing and equal opportunity Community Housing Resource Board CHDO Project / Operations 1 2017-18 HOME Funding Agreement Page 9 components of the Program; financial records as required by 24 CFR Part 570.502 and 24 CFR 84; and, all other records necessary to document the Grantee's compliance with Subpart K of 24 CFR 570. 2. Retention. The Grantee shall retain all records related to its expenditures under this Agreement for a period of four (4) years after the termination of all activities funded under this Agreement. Records for non -expendable property acquired with the Funding shall be retained for four (4) years after final disposition of such property. Records for any displaced person must be kept for four (4) years after the displaced person has received final payment. Notwithstanding the above, if there is any litigation, claim, audit, negotiation or other action that involves any of the records cited herein and that has started before the expiration of the four (4) year period, then such records must be retained until the completion of the actions and resolution of all issues, or the expiration of the four (4) year period, whichever occurs later. 3. Client Data. The Grantee shall maintain data that demonstrates its clients' eligibility for the Funding and services provided under this Agreement. Such data shall include, but not be limited to: client name; client address; client income level; other determination of client eligibility; and, a description of the service provided to the client related to this Agreement. Such information shall be made available to the City monitors for review upon request by the City. 4. Disclosure. The Grantee understands that any of its clients' 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 Grantee's responsibilities related to this Agreement, is prohibited unless written consent is obtained from such client and, in the case of a minor, that of a responsible parent or guardian, unless otherwise required by law. 5. Property Records. The Grantee shall maintain a real property inventory that clearly identifies any property purchased, improved, or sold under this Agreement or that is related to the Funding. Any such property shall throughout the Term remain in compliance with all eligibility criteria and shall conform with the "changes in use" restrictions specified in 24 CFR Parts 570.503(b)(8). 6. Close -Oasts. The Grantee's obligations under this Agreement shall not end until all close-out requirements under this Agreement and under any applicable law and regulation 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. 7. Audits & Inspections. All of the Grantee's records related to this Agreement shall be made available at any time during normal business hours as often as the City or its designee deems necessary to audit, examine, or make excerpts or transcripts of any data relevant to this Agreement in order for the City to produce an audit report. Any deficiencies noted in an audit report must be fully cleared by the Grantee within thirty (30) days after receipt by the Grantee. Failure of the Grantee to comply with the above audit requirements will constitute a violation Community Housing Resource Board CHDO Project / Operations 1 2017-18 HOME Funding Agreement Page 10 of this Agreement and may result in the withholding of Funding. The Grantee hereby agrees to have an annual internal audit conducted in accordance with current City policy concerning Grantee audits and, as applicable, 2 CFR Part 200. C. Reporting and Payment Procedures 1. Payment Procedures. The City will pay to the Grantee the Funding based upon information submitted by the Grantee and consistent with any approved budget and City policy concerning the Payment. With the exception of certain advances, each Payment will be made for eligible expenses actually incurred by the Grantee, and not to exceed actual cash requirements. Each Payment will be adjusted by the City in accordance with advance fund and program income balances available in the Grantee's accounts. Additionally, the City reserves the right to liquidate any part of the Funding for costs incurred by the City on behalf of the Grantee. 2. Performance and Financial Reports. Throughout the Term, the Grantee shall submit to the City, in a format prescribed by the City, a monthly Performance Report, a Financial Report, and a narrative for the Grantee's Program activity and shall include the amount of all of the Grantee's expenditures for each of its Program activities. The Grantee shall submit such Reports and narrative no later than the twentieth (20th) day of each month. The September Reports and narrative must submitted by September 30, but the Reports and narrative will remain due by the twentieth (20th) day of October. Reporting will continue from the start of Program activity through the end of the Program year. D. Procurement 1. Compliance. The Grantee shall comply with the City policy concerning the purchase of equipment and shall maintain inventory records of all non -expendable personal property as defined by such City policy as may be procured with any Funding provided herein. All Program assets purchased with Funding, including unexpended program income, property, or equipment, shall revert to the City upon the termination of this Agreement. 2. CFR Standards. The Grantee shall procure all materials, property, or services in accordance with the requirements of 24 CFR 84, Procurement Standards, and shall subsequently follow Property Management Standards as modified by 24 CFR 570.502(b)(6), covering utilization and disposal of property. 3. Travel. The Grantee shall obtain written approval from the City for any travel outside the metropolitan area that is financed in any way through the Funding. E. Use and Reversion of Assets The use and disposition of real property and equipment under this Agreement shall be in compliance with the requirements of 24 CFR Part 84 and CFR 570.502, 570.503, and 570.504, as applicable, which include but are not limited to the following: 1. Any subrecipient used by the Grantee under this Agreement (the "Subrecipient") shall transfer to the Grantee all CDBG funds on hand and any accounts receivable attributable to the use of the Funding at the time of expiration, cancellation, or termination of this Agreement. Community Housing Resource Board CHDO Project / Operations 1 2017-18 HOME Funding Agreement Page 11 2. Real property under the Subrecipient's control that was acquired or improved, in whole or in part, with the Funding in excess of twenty-five thousand dollars ($25,000) shall be used to meet one of the CDBG National Objectives pursuant to 24 CFR 570.208 until five (5) years after the expiration of this Agreement, or such longer period of time as the Grantee deems appropriate. If the Subrecipient fails to use CDBG-assisted real property in a manner that meets a CDBG National Objective for the prescribed period of time, then the Subrecipient shall pay to the Grantee an amount equal to the current fair market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for acquisition of, or improvement to, the property. Such payment shall constitute Program income to the Grantee. The Subrecipient may retain real property acquired or improved under this Agreement after the expiration of the five (5) year period, or such longer period of time as the Grantee deems appropriate. 3. In all cases in which equipment acquired, in whole or in part, with the Funding 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 Subrecipient for activities under this Agreement shall be transferred to the Grantee for the CDBG program, or retained after compensating the Grantee for an amount equal to the current fair market value of the equipment less the percentage of non-CDBG funds used to acquire the equipment. Article 9. RELOCATION, REAL PROPERTY ACQUISITION AND ONE -FOR -ONE HOUSING REPLACEMENT The Grantee agrees to comply with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA), and implementing regulations at 49 CFR Part 24 and 24 CFR 570.606(b); the requirements of 24 CFR 570.606(c) governing the Residential Antidisplacement and Relocation Assistance Plan under Section 104(d) of the HCD Act; and, the requirements in 570.606(d) governing optional relocation policies. The City may preempt the optional policies. The Grantee shall provide relocation assistance to persons, families, individuals, businesses, nonprofit organizations, and farms that are displaced as a direct result of acquisition, rehabilitation, demolition, or conversion for a CDBG-assisted project. The Grantee also agrees to comply with all applicable City ordinances, resolutions, and policies concerning the displacement of persons from their residences. Article 10. PERSONNEL & PARTICIPANT CONDITIONS A. Civil Rights 1. Compliance. The Grantee agrees to comply, and to require its 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 Grantee 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 or familial status, or status with regard to public assistance. The Grantee will take affirmative action to insure that all employment practices are free from such Community Housing Resource Board CHDO Project / Operations 1 2017-18 HOME Funding Agreement Page 12 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 Grantee 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 and 24 CFR 570.601-602. In regard to the sale, lease, or other transfer of land acquired, cleared, or improved with assistance provided under this Agreement, the Grantee 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, lease or rental, or in the use or occupancy 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 Grantee, 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 Grantee agrees to comply with any Federal regulations issued pursuant in compliance with Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 706), which prohibits discrimination against the handicapped in any Federally -assisted program. The City shall provide the Grantee with any guidelines necessary for compliance the regulations during the term of this Agreement. 5. Reports. The Grantee shall maintain a report that documents the race and ethnicity of its employees. The Grantee shall provide the City a copy with said report upon execution of this Agreement. 6. Policies. The Grantee shall maintain current copies of its fair housing and equal opportunity policies. The Grantee shall provide a copy of said policies to the City immediately upon request. B. Affirmative Action 1. Approved Plan. The Grantee agrees that t 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. If the Grantee receives Federal funds through the City, then the Grantee shall be required to develop a written Affirmative Action Program to insure that equal opportunity is provided in all aspects of its employment. 2. Women- and Minority -Owned Business. The Grantee 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. 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. The term "minority group members" means Afro-Americans, Spanish-speaking, Spanish -surnamed or Spanish -heritage Americans, Asian -Americans, and American Indians. Community Housing Resource Board CHDO Project / Operations 1 2017-18 HOME Funding Agreement Page 13 The Grantee may rely on written representations by businesses regarding their status as minority- and women -owned business enterprises in lieu of an independent investigation. 3. Access to Records. The Grantee shall furnish and cause any Subrecipient or subcontractor 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. 4. Notifications. The Grantee 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 Grantee's commitments hereunder, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 5. EEO/AA Statement. The Grantee will, in all solicitations or advertisements for employees placed by or on behalf of the Grantee, state that it is an Equal Opportunity or Affirmative Action employer. 6. Subcontract Provisions. The Grantee will include the provisions of the Civil Rights and Affirmative Action sections of this Agreement, in every subcontract or purchase order, specifically or by reference, so that such provisions will be binding upon each Subrecipient or subcontractor. C. Employment Restrictions 1. Prohibited Activity. The Grantee is prohibited from using the Funding or personnel employed in the administration of the Program for political activities, sectarian activity, religious activity, lobbying, political patronage, or nepotism. 2. Labor Standards. The Grantee agrees to comply 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 Grantee 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 Grantee agrees that, except with respect to the rehabilitation or construction of residential property containing less than eight (8) units, all contractors engaged under contracts in excess of two thousand dollars ($2,000) for construction, renovation, or repair work financed in whole or in part with the Funding, 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 Grantee of its obligation, if any, to require payment of the higher wage. The Grantee shall cause or require to be inserted in full, Community Housing Resource Board CHDO Project / Operations 1 2017-18 HOME Funding Agreement Page 14 in all such contracts subject to such regulations, provisions meeting the requirements of this paragraph. D. "Section 3" Clause 1. Compliance. Compliance with the provisions of Section 3 of 24 CFR 135, and all applicable rules and orders issued hereunder prior to the execution of this Agreement, shall be a condition of the Funding and shall be binding upon the City, the Grantee, any Subrecipient, and any subcontractor. Failure to fulfill these requirements shall subject the City, the Grantee, any Subrecipient, and any subcontractor, to those sanctions specified by the Agreement. The Grantee certifies that no contractual or other disability exists which would prevent compliance with these requirements. The Grantee certifies and agrees that no contractual or other legal incapacity exists which would prevent compliance with these requirements. 2. "Section 3 " Paragraph. The Grantee 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 contract 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. Training & Employment. The Grantee will ensure that opportunities for training and employment 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 Project is located. Where feasible, the Grantee agrees that 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. 4. Award of Contracts. The Grantee agrees to 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 Project is located. Where feasible, the Grantee agrees that priority should be given to business concerns which provide economic opportunities to low - and very low-income residents within the service area or the neighborhood in which the Project is located, and to low- and very low-income participants in other HUD programs. 5. Notifications. The Grantee 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 Community Housing Resource Board CHDO Project / Operations 1 2017-18 HOME Funding Agreement Page 15 under this Section 3 clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training. 6. Subcontracts. The Grantee 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 Grantee 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 allow any subcontract unless the entity provides a preliminary statement of ability to comply with the requirements of this Agreement and all other applicable law. E. Assignability The Grantee shall not assign or transfer any interest in this Agreement without the prior written consent of the City. Claims for money due or to become due to the Grantee 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. F. Subcontracts 1. Approvals. The Grantee 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 subcontract. 2. Monitoring. The Grantee 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 Grantee 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. 4. Selection Process. The Grantee shall insure that all subcontracts entered into 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 and Disbarment. The Grantee shall not enter into any subcontracts with an agency, business, or individual that has been suspended, disbarred, or otherwise excluded from Federal grants. The Grantee shall maintain records demonstrating that it has reviewed potential subcontractors against the debarred and excluded list prior to committing any of the Funding to a subcontract. G. Hatch Act The Grantee agrees that no Funding or 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. Community Housing Resource Board CHDO Project / Operations 1 2017-18 HOME Funding Agreement Page 16 H. Conflict of Interest The Grantee shall maintain a written code of conduct to govern the performance of its employees engaged in the award and administration of this Agreement, with such code of conduct being in compliance with 24 CFR 84.42. Further, the Grantee 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. The Grantee further covenants that, in the performance of this Agreement, no person having such a financial interest shall be employed or retained by the Grantee. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer, elected official, or appointed official of the City, any designated public agency, or Subrecipient which is receiving funds under the CDBG Entitlement program. I. Lobbying The Grantee hereby certifies that: 1. No Federal appropriated fiends 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. 2. 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. 3. It will require that the language of paragraph (d) of this certification be included in the award documents for all subawards at all tiers, including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements, and that all Subrecipients shall certify and disclose accordingly. J. Lobbying Certification 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. K. Copyright If this Agreement results in any copyrightable material or inventions, the City 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. Community Housing Resource Board CHDO Project / Operations 1 2017-18 HOME Funding Agreement Page 17 L. Religious Organization The Grantee agrees that the Funding 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 570.2000). Article 11. ENVIRONMENTAL CONDITIONS A. Air and Water The Grantee agrees to comply with the following requirements insofar as they apply to the performance of this Agreement: Clean Air Act, 42 U.S.C., 7401, et seq; 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; other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder; and, Environmental Protection Agency (EPA) regulations pursuant to 40 C.F.R., Part 50, as amended. B. Flood Disaster Protection In accordance with the requirements of the Flood Disaster Protection Act of 1973 (42 USC 4001), the Grantee 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 Grantee 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 570.608, and 24 CFR Part 35 and will comply with all applicable requirements. D. Asbestos The City 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 Grantee 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. Article 12. 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. Community Housing Resource Board CHDO Project / Operations 1 2017-18 HOME Funding Agreement Page 18 Article 13. 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. Article 14. WAIVER The Grantee's failure to act with respect to a breach by the Subrecipient does not waive its right to act with respect to subsequent or similar breaches. The failure of the Grantee to exercise or enforce any right or provision shall not constitute a waiver of such right or provision. Article 15. CHAPTER 2270, SUBTITLE F, TITLE 10, TEXAS GOVERNMENT CODE The Grantee 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. Article 16. ENTIRE AGREEMENT This Agreement constitutes the entire agreement between the Parties 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 City and the Grantee, and the Grantee and any Subrecipient, with respect to this Agreement. THE PARTIES EXECUTE THIS AGREEMENT AS OF THE DATE FIRST WRITTEN ABOVE. SIGNATURES FOR: THE CITY OF LUBBOCK FOR: THE COMMUNITY HOUSING RESOURCE BOARD DANIEL M. POPE, MAYOR Maggie frejov, Executive Director FED. I.D. # 75-2052605 Community Housing Resource Board CHDO Project / Operations 1 2017-18 HOME Funding Agreement Page 19 ATTEST: Reb cm Garza, City ecr tar APPROVED AS TO CONTENT: Karen Murfee, Community DVvelopment Director APPROVED AS TO FORM: Community Housing Resource Board CHDO Project / Operations 1 2017-18 HOME Funding Agreement Page 20