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HomeMy WebLinkAboutResolution - 2019-R0224 - Agreement 14788 - 6/25/2019No. 2019-RO224 No. 6.17 une 25, 2019 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, the HOME Investment Partnership Program Funding Agreement 14788, and all related documents, between the City of Lubbock and the Community Housing Resource Board (CHRB) for the funding of an affordable rental housing program. 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 25, 2019 _ ............ DANIEL M. POPE, MAYOR ATTEST: .. ...... .... ._ Rebe&ca'rza City Secreta APPROVED AS TO CONTENT: APPROVED AS TO FORM: K Ili Leisure, Assistant City Attorney ccdocs/RES. HOME Contract 14798 , CHRB 06.10.19 Resolution No. 2019-RO224 COMMUNITY DEVELOPMENT HOME INVESTMENT PARTNERSHIP FUNDING AGREEMENT Between THE CITY OF LUBBOCK AND COMMUNITY HOUSING RESOURCE BOARD This Community Development HOME Investment Partnership Program Funding Agreement (the "Agreement"), Contract No. 14788, is made by and between the City of Lubbock, a State of Texas home rule municipal corporation (the "City") and COMMUNITY HOUSING RESOURCE BOARD (CHRB), (the "Grantee"), (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 22h day of June 2019 (the "Effective Date"). RECITALS WHEREAS, the City is obligated to perform certain services in its undertaking of the HOME Investment Partnership Program (the "HOME Program") pursuant to Titles I and II of the Cranston -Gonzales National Affordable Housing Act; and WHEREAS, the Grantee operates as a non-profit organization offering services to families throughout Lubbock; and WHEREAS, the Grantee is recognized as a Community Housing Development Organization (CHDO) by the Department of Housing and Urban Development; and WHEREAS, the Grantee proposes to provide a program called Affordable Rental Housing Program and CHDO Operations which will allow the Grantee to provide affordable housing for low to moderate income individuals (the "Services"): and further qualifies for CHDO Operating Funds to provide administrative funds to operate CHDO programs. WHEREAS, the City Council of the City of Lubbock has declared the Services provided by the Grantee to be a public purpose; 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 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 Grantee has the special expertise, knowledge and experience necessary for the operation of the Affordable Rental Housing Program and CHDO Operations Funds and that the City will receive adequate consideration in the form of substantial public benefit; and THE PARTIES, FOR GOOD AND VALUABLE CONSIDERATION, AGREE AS FOLLOWS: CHRB Affordable Rental Housing & CHDO Operations HOME Funding Agreement Page l AGREEMENT I. SCOPE OF SERVICE A. Activities The Grantee will be responsible for administering a HOME funded Affordable Rental Housing Program and CHDO Operating Funds in a manner satisfactory to the City and consistent with any standards required as a condition of providing these funds. Such program will include the following activities eligible under the HOME Investment Partnership Program. Specifically, the Grantee shall with the sum of allocated HOME Program funding (see III. Budget) Four Hundred Thousand dollars ($400,000) to pay for the acquisition and rehabilitation of existing houses for affordable rental housing for low to moderate income households and Fifty Thousand dollars ($50,000) to provide administrative funds to operate CHDO programs. B. Objectives The Grantee certifies the activities carried out with funds provided under this Agreement will meet the HOME Program's eligible activities under 24 CFR Part 92 Subpart E. C. City Responsibilities 1. City agrees to provide Grantee assistance from the Department of Housing and Urban Development funds in an amount not to exceed Four Hundred and Fifty Thousand dollars ($450,000) for the CHDO Project — Affordable Rental Housing Program and CHDO Operating Funds in return for Grantee performing the Services set forth in this Agreement as consideration for said funds. 2. 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 Grantee 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 payments to Grantee under this Agreement. 3. City shall not be liable for any incurred Grantee costs, Grantee reimbursements which have been paid to or subject to payment to Grantee by any source other than City or Grantee. 4. City shall not be liable to Grantee for any costs incurred by Grantee which are not allowable costs, as set forth in 24 CFR 92 Subpart E. 5. City shall not be liable to Grantee for any costs incurred by Grantee or for any performances rendered by Grantee which are not strictly in accordance with the terms of this Agreement. 6. City shall not be liable to Grantee for any costs incurred by Grantee in the performance of this Agreement which have not been billed to City by Grantee within ninety (90) days unless otherwise approved by the City. CHRB Affordable Rental Housing & CHDO Operations HOME Funding Agreement Page 2 7. City shall not be liable for costs incurred or performances rendered by Grantee before commencement of this Agreement or after termination of this Agreement. 8. City shall review all work specifications prior to the beginning of the procurement process. 9. City shall inspect all construction work for compliance with work specifications prior to the release of any funds. D. Grantee's_ Responsibilities 1. Grantee shall perform all activities in accordance with their budget, the applicable laws and regulations set forth herein; the assurance, certifications, and all other terms, provisions, and requirements set forth in this Agreement. 2. Grantee shall submit to City such reports on the operation and performance of this Agreement during their program activity timeframe, as requested by the City. 3. In addition to the limitations on liability otherwise specified in this Agreement, it is expressly understood and agreed by the parties hereto that if Grantee fails to submit to City in a timely and satisfactory manner any report required by this Agreement, City may, at its sole option and in its sole discretion, withhold any or all payments otherwise due or requested by Grantee hereunder. If City withholds such payments, it shall notify Grantee in writing of its decision and the reasons therefor. Payments withheld pursuant to this paragraph may be held by City until such time as the delinquent obligations for which funds are withheld are fulfilled by Grantee. 4. Grantee shall refund to City any sum of money which has been paid to Grantee by City which City determines has resulted in overpayment to Grantee, or which City determines has not been spent by Grantee strictly in accordance with the terms of this Agreement. Such refund shall be made by Grantee to City within thirty (30) working days after such refund is requested by City. 5. Grantee agrees to comply with the affordability requirements of 24 CFR 92.252 or 92.254. Grantee agrees to repay any funds during the time period wherein the housing does not meet the affordability requirements. 6. Grantee agrees to comply with the applicable uniform administrative requirements, as described in 24 CFR 92.505. 7. Grantee agrees to comply with project requirements in 24 CFR Part 92 Subpart F, as applicable with the type of project in the Agreement. 8. Grantee agrees to carry out each activity in the Agreement in compliance with all Federal laws and regulations described in 24 CFR Part 92 Subpart H, including CHRS Affordable Rental Housing & CHDO Operations HOME Funding Agreement Page 3 responsibilities for environmental review in 24 CFR 92.352 and the intergovernmental review process in 24 CFR 92.359. 9. Grantee agrees to comply with Housing and Urban Development (HUD) Outcome Performance Measurement requirements and reporting. 10. Grantee agrees to comply with the affirmative marketing responsibilities specified in 24 CFR 92.351. 11. Grantee agrees that the units constructed under the HOME Program shall be made available exclusively to eligible low and moderate income families whose gross household income does not exceed the income eligibility requirements as established by the Department of Housing and Urban Development. 12. Grantee shall submit to City a request for an environmental assessment to be prepared and approved on individual construction sites prior to beginning the project. 13. Grantee shall submit to City a request for a review of all work specifications prior to the beginning of the construction process. 14. Grantee shall notify City upon interim draws and upon work completion for inspection by the Community Development Department prior to the request for funds and approval by the Community Development Department to allow the home buyer to move into home. 15. Grantee 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. 16. Grantee agrees that contracts, agreements and deed of trusts with homebuyers will include affordability requirements as defined in the HOME Program regulations. 17. Grantee agrees that any interests or assets obtained with the HOME Program funding shall revert back to the City in the event that said Agency/Non-profit dissolves, files for bankruptcy or goes out of business for any reason. E. Grantee's Match: HOME Program funds used for administrative and planning costs (pursuant to 24 CFR 92.207) CHDO operating expenses (pursuant to 24 CFR 92.208) and capacity building (pursuant to 24 CFR 92.300(b)) of community housing development organizations are not required to be matched. CHRB Affordable Rental Housing & CHDO Operations HOME Funding Agreement Page 4 F. 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: Pry Timeline Accomplishments Affordable Housing 10/1/2018 — 9/30/2020 Acquisition and Rehabilitation of existing houses to provide affordable rentals to low to moderate income households. CHDO Operating 10/1/2018 _9/30/2020 Funding to operate CHDO Project. G. Staffing to be Provided by Grantee Name _ Title Maggie Trejo Executive Director June Rangel Administrative Assistance H. Performance Monitoring 1. General Statement: The City will monitor the performance of the Grantee for compliance with goals and requirements as required or as it deems necessary in accordance with the regulations. Monitoring will be based on a risk analysis and a monitoring plan developed at the beginning of the fiscal year. Desk monitoring will take place on a monthly and quarterly basis as described below during Grantees program activity timeframe. 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, contract suspension or termination procedures will be initiated. 2. Desktop Monitoring • Desktop Monitoring will be completed as request for reimbursement for this program are submitted. Monitoring will also be accomplished by reviewing monthly and end of year reports. 3.On-site Monitoring • The number of on -site Monitoring Visits will be determined by the Community Development department of the City of Lubbock. • A notification letter will be sent to the Grantee at least 15 days before on -site monitoring visit. • A monitoring letter sent to the Grantee identifying concerns and findings, if any, within thirty (30) days of on -site monitoring visit. • Grantee must provide a written response within thirty (30) days of receipt of the monitoring letter that describes how the Grantee will resolve any issues. If no deficiencies were noted Grantee must confirm receipt of report within thirty (30) days of the date of the letter. CHRB Affordable Rental Housing & CHDO Operations HOME Funding Agreement Page 5 II. TIME OF PERFORMANCE Services of the Grantee shall start on the 1 st day of October 2018, and end on the 30th day of September 2020. The term of this Agreement and the provisions herein 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 HOME Program funds or other assets, including program income. III. BUDGET Acquisition and 2018 - 2020 $400,000 Rehabilitation CHDO Operations 2018 - 2020 S 50.000 Total: Any indirect costs charged must be consistent with the conditions of Paragraph VIII (C)(2) of this Agreement. In addition, the City may require a more detailed budget breakdown than the one contained herein, and the Grantee shall provide such supplementary budget information in a timely fashion in the form and content prescribed by the City. Any change to this budget must be approved in writing by the City and the Grantee. IV. PAYMENT All payments to Grantees are on a monthly reimbursement basis. The Grantee will have incurred the expense or paid for the expense and submit detailed source documentation to the City when requesting payment. It is expressly agreed and understood that the total amount to be paid by the City under this Agreement shall not exceed $450,000 for the CHDO Project — Affordable Rental Housing Program and CHDO Operating Funds Drawdowns for the payment of eligible expenses shall be made against the line item budgets specified in Paragraph III herein and in accordance with performance. Expenses for general administration shall also be paid against the line item budgets specified in Paragraph III and in accordance with performance. Payment requests must be submitted with back-up documentation such as time sheets, paycheck stubs, receipts, invoices, billing statements or other verification in support of all expenditures incurred and charged to the grant. Payments may be contingent upon certification of the Grantee's financial management system in accordance with the standards specified in 24 CFR 84. CHRB Affordable Rental Housing & CHDO Operations HOME Funding Agreement Page 6 V. NOTICES Written notices provided for under this Agreement shall be directed to the following contract representatives: City Grantee Karen Murfee Maggie Trejo City of Lubbock CHRB P. O. Box 2000 1628 Main Street Lubbock, TX 79457 Lubbock, TX 79401 VI. GENERAL CONDITIONS A. General Comuliance The Grantee agrees to comply with the requirements of Title 24 of the Code of Federal Regulations, Part 92 for HOME Investment Partnerships Program. The Grantee also agrees to comply with all other applicable Federal, state and local laws, regulations, and policies governing the funds provided under this Agreement. The Grantee further agrees to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available. The Grantee also agrees to comply with all other applicable Federal, state and local laws, regulations, and policies governing the funds provided under this Agreement. The Grantee further agrees to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available. 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: IN Title 24 CFR, Part 92 for HOME Investment Partnerships Program; OMB Circular A-87 "Cost Principles for State and Local Governments," or OMB Circular A-110, or OMB Circular A-122 "Cost Principles for Non -Profit Organizations," or OMB Circular A-21 "Cost Principles for Educational Institutions"; OMB Circular A-128, "Audits of State and Local Governments" or OMB Circular A-133 Audits of Institutions of Higher Education and Other Non -Profit Institutions"; 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 Housing and Community Development 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; CHRB Affordable Rental Housing & CHDO Operations HOME Funding Agreement Page 7 ■ 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, &24 CFR982.401; ■ 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 Part39; ■ Historic Preservation Act of 1966, as amended, and related laws and Executive Orders; ■ Executive Order 11988, floodplain management, 1977 (42 FR 26951 et seq.); ■ Flood Disaster protection Act of 1973 B. Independent Contractor Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/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 and/or medical insurance and Workers' Compensation insurance as the Grantee is an independent contractor. C. Indemnity and Release GRANTEE 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 INDIRECTLY, OR ARE RELATED TO, IN ANY WAY, MANNER OR FORM, THE ACTIVITIES CONTEMPLATED HEREUNDER. GRANTEE SHALL PAY TO THE CITY, THE CITY'S RESPECTIVE OFFICERS, EMPLOYEES, ELECTED OFFICIALS AND/OR AGENTS, AS APPLICABLE, ALL ATTORNEYS' FEES INCURRED BY SUCH PARTIES IN ENFORCING GRANTEE'S INDEMNITY IN THIS SECTION. THE CITY, AND ITS RESPECTIVE OFFICERS, EMPLOYEES, ELECTED OFFICIALS AND AGENTS SHALL NOT BE LIABLE AND GRANTEE HEREBY RELEASES THE CITY, AND ITS RESPECTIVE OFFICERS, EMPLOYEES, ELECTED OFFICIALS AND AGENTS, FOR, FROM AND/OR AGAINST ANY LOSSES, DAMAGES, CLAIMS OR LIABILITIES TO GRANTEE. THE INDEMNITY AND RELEASE PROVIDED HEREIN SHALL SURVIVE THE TERMINATION OR VOIDANCE OF THIS AGREEMENT. CHRB Affordable Rental Housing & CHDO Operations HOME Funding Agreement Page 8 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 document, 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 Agreement assets from loss due to theft, fraud andlor 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 Grantee shall comply with the bonding and insurance requirements of 24 CFR, Bonding and Insurance. 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 funding source. In addition, the Grantee will include a reference to the support provided herein in all publications made possible with funds made available under this Agreement. H. Amendments The City or Grantee may amend this Agreement at any time, provided that such amendments make specific reference to this Agreement and are executed in writing, signed by a duly authorized representative of both organizations and approved by the City's governing body. Such amendments shall not invalidate this Agreement nor relieve or release the City or Grantee 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 Grantee. I. 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 CHRB Affordable Rental Housing & CHDO Operations HOME Funding Agreement Page 9 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 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 Grantee 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 Grantee 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 Grantee 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 Grantee 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 Grantee. 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 Grantee. VII. ADMINISTRATIVE REQUIREMENTS A. Financial Management 1. Accountinp, Standards The Grantee agrees to comply with 24 CFR 84 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 Grantee shall administer its program in conformance with OMB Circulars A- I22, "Cost Principles for Non -Profit Organizations." These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. B. Documentation and Record -Keeping 1. Records to be Maintained The Grantee 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: a. Records providing a full description of each activity undertaken; b. Records demonstrating that each activity undertaken meets the eligible activities under the HOME Program; C. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with HOME Program assistance, as applicable; d. Records documenting compliance with the fair housing and equal opportunity components of the HOME Program; CHRB Affordable Rental Housing & CHDO Operations HOME Funding Agreement Page 10 e. Financial records as required by 24 CFR Part 92.505, and 24 CFR 84; and f. Other records necessary to document compliance with Subpart H of 24 CFR Part 92. g. Records documenting that each housing project meets the requirements of 24 CFR 92.252 for the required period of affordability. Records must be kept for each family assisted. h. All records as required by 24 CFR Part 92.508. 2. Retention The Grantee 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 ears 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 payment. 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. 3. Client Data The Grantee shall maintain client data demonstrating client eligibility for Services provided. 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 monitors as the houses are leased and or sold. 4. Disclosure The Grantee 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 Grantee'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 parent/guardian, unless otherwise required by law. 5. Proyerty Records The Grantee 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. CHRB Affordable Rental Housing & CHDO Operations HOME Funding Agreement Page l l 6. Close -Outs The Grantee'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. Affordability and resale/recapture requirements, as applicable continue through the term of those requirements in the individual agreements with home buyers. The Grantee is required to continue monitoring those requirements until they expire. 7. Audits & Inspections All Grantee records with respect to any matters covered by this Agreement shall be made available to the City, grantor agency, their designees or the Federal Government, 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 Grantee within 30 days after receipt by the Grantee. Failure of the Grantee to comply with the above audit requirements will constitute a violation of this Agreement and may result in the withholding of future payments. The Grantee hereby agrees to have an annual agency audit conducted in accordance with current City policy concerning Grantee audits and, as applicable, OMB Circular A-133. Grantees meeting the OMB Circular A-133 requirements must submit their audits to the audit clearing house within nine (9) months after the entities fiscal year end date. C. Reporting and Payment Procedures 1. Payment Procedures The City will pay to the Grantee funds available under this Agreement, based upon information submitted by the Grantee and consistent with any approved budget and City policy concerning payments. With the exception of certain advances, payments will be made for eligible expenses actually incurred by the Grantee, and not to exceed actual cash requirements. Payments will be adjusted by the City in accordance with advance fund and program income balances available in Grantee accounts. In addition, the City reserves the right to liquidate funds available under this Agreement for costs incurred by the City on behalf of the Grantee. 2. Performance Reports Grantee shall submit to City a Performance and Financial Report, monthly or during their program activity time frame as requested by the city, in a format prescribed by the City and shall include the amount of funds expended for each of the eligible activities. CHRB Affordable Rental Housing & CHDO Operations HOME Funding Agreement Page 12 The initial Performance and Financial Report is required by the loth of the following month after program activity starts. Grantee shall continue to submit the reports monthly no later than the 10" of each month, the final financial report and request for reimbursement must be in by September 301h of 2019 and 2020. The performance report will remain due by the 101h of the following month thereafter. Reporting will continue from the start of program activity until funding is completed and the property is no longer in affordability period. Along with the performance report Grantee shall submit narrative information on progress of the funded activities to the City in the form, content, and frequency as required by the City. Grantee will continue tracking and submitting reports to the City on project proceeds and its use into acquiring and rehabilitating additional homes for the Lease Purchase Program for eligible low income buyers even after this Agreement expires. D. Procurement 1. Compliance The Grantee 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. Ail program assets purchased with such funds (unexpended program income, property, equipment, etc.) shall revert to the City upon 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 covering utilization and disposal of property. 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. The Subrecipient shall transfer to the Grantee any CHRB funds on hand and any accounts receivable attributable to the use of funds under this Agreement at the time of expiration, cancellation, or termination. 2. Real property under the Subrecipient's control that was acquired or improved, in whole or in part, with funds under this Agreement in excess of $25,000 shall be used to meet one of the CHRB National Objectives pursuant to 24 CFR 570.208 until five (5) years after expiration of this Agreement [or such longer period of time as the Grantee deems appropriate]. if the Subrecipient fails to use CHRB-assisted real property in a manner that meets a CHRB National Objective for the prescribed period CHRB Affordable Rental Housing & CHDO Operations HOME Funding Agreement Page 13 of time, the Subrecipient shall pay 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-CHRB 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-year [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 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 Subrecipient for activities under this Agreement shall be (a) transferred to the Grantee for the CHRB program or (b) retained after compensating the Grantee [an amount equal to the current fair market value of the equipment less the percentage of non-CHRB funds used to acquire the equipment]. IX. RELOCATION, REAL PROPERTY ACQUISITION AND ONE -FOR -ONE HOUSING REPLACEMENT The Grantee 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 and 24 CFR 92.353; (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 (c) the requirements in 570.606(d) governing optional relocation 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 HOME - Program assisted project. The Grantee also agrees to comply with applicable City ordinances, resolutions and policies concerning the displacement of persons from their residences. X. PERSONNEL & PARTICIPANT CONDITIONS A. Civil Rights 1. Compliance The Grantee 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 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, maritallfamilial status, or status with regard to public assistance. The Grantee will take affirmative action to insure that all employment practices are free from such discrimination. Such employment CHRB Affordable Rental Housing & CHDO Operations HOME Funding Agreement Page 14 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 (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 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 a�, ...geeee s to comply with any Federal regulations issued pursuant to 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 with that portion of the regulations in force during the term of this Agreement. 5. Reports The Grantee shall maintain a report that documents the racelethnicity 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 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 Grantee to assist in the formulation of such program. The Grantee shall submit a plan for an Affirmative Action Program for approval prior to the award of funds. 2. Women -and Minority -Owned Businesses CHRB Affordable Rental Housing & CHDO Operations HOME Funding Agreement Page 15 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. As used in this Agreement, the term "minority and female business enterprise" means a business at least f fty-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 Grantee may rely on written representations by businesses regarding their status as minority and female business enterprises in lieu of an independent investigation. 3. Access to Records The Grantee shall furnish and cause each of its own subrecipients 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. 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 Paragraphs X.A., Civil Rights, and B., Affirmative Action, in every subcontract or purchase order, specifically or by reference, so that such provisions will be binding upon each of its own subrecipients or subcontractors. C. Employment Restrictions 1. Prohibited Activity The Grantee 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 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 CHRB Affordable Rental Housing & CHDO Operations HOME Funding Agreement Page 16 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 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 Grantee of its obligation, if any, to require payment of the higher wage. The Grantee shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of this paragraph. 3. "Section 3" Clause a. Compliance 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 Grantee and any of the Grantee's subrecipients and subcontractors. Failure to fulfill these requirements shall subject the City, the Grantee and any of the Grantee's subrecipients and subcontractors, their successors and assigns, to those sanctions specified by the Agreement through which Federal assistance is provided. The Grantee certifies and agrees that no contractual or other disability exists which would prevent compliance with these requirements. 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 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." CHRB Affordable Rental Housing & CHDO Operations HOME Funding Agreement Page 17 The Grantee further agrees to 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 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 the service area or the neighborhood in which the project is located, and to low- and very low-income participants in other HUD programs. The Grantee certifies and agrees that no contractual or other legal incapacity exists which would prevent compliance with these requirements. b. 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 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 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 let any subcontract unless the entity has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. D. Conduct 1. Assignability The Grantee 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 Grantee from the City under this Agreement CHRB Affordable Rental Housing & CHDO Operations HOME Funding Agreement Page 18 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. 2. Subcontracts a. 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 agreement. b. Monitorinp, 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. C. 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. d. Selection Process The Grantee shall undertake to insure 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. e. Suspension / 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 grant funds to a subcontract. 3. Hatch Act The Grantee 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. 4. Conflict of Interest The Grantee 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 24 CFR 84.42. Further, 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 CHRB Affordable Rental Housing & CHDO Operations HOME Funding Agreement Page 19 shall be employed or retained by the Grantee 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 subrecipients which are receiving funds under the CDBG Entitlement program. 5. Lobbying The Grantee 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; 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 subrecipients shall certify and disclose accordingly; and d. LobbAng Certification - Paragraph 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. 6. Col2yright 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. CHRB Affordable Rental Housing & CHDO Operations HOME Funding Agreement Page 20 7. Religious Organization The Grantee 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. XI. 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, as well as other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder. 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 92.355, and 24 CFR Part 35 as applicable. D. Asbestos The Grantee 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. CHRB Affordable Rental Housing & CHDO Operations HOME Funding Agreement Page 21 XII. SEVERABIL.ITY 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. XIII. 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. XIV. 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. XV. CHAPTER 2270SUBTITLE F TITLE 10TEXAS 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. XVI. ENTIRE AGREEMENT This Agreement constitutes the entire Agreement between the Grantee and the Subrecipient 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 Grantee and the Subrecipient with respect to this Agreement. IN WITNESS HEREOF, THE PARTIES HAVE EXECUTED AND ENTER INTO THIS AGREEMENT ON THE EFFECTIVE DATE [Signature Page to Follow] CHRB Affordable Rental Housing & CHDO Operations HOME Funding Agreement Page 22 SIGNATURES FOR: CITY OF LUBBOCK � �"-' I.-- DANIEL M. POPE, AYOR ATTEST: &e6earza, City Sectar�y APPROVED AS TO CONTENT: tkrWA&,, Karen Murfee, Community De opment Director APPROVED AS TO FORM: h4 Ili Leisure, Assistant City Attorney FOR: COMMUNITY HOUSING RESOURCE BOARD Maggie T xecutive Director Sammy R. Harper, President FED. I.D. # 75-2052605 CHRB Affordable Rental Housing & CHDO Operations HOME Funding Agreement Page 23