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HomeMy WebLinkAboutResolution - 2013-R0333 - Contract - CHRB - FY 2012-13 HOME Program, Lease Purchase Program - 10/10/2013Resolution No. 2013-RO333 October 10, 2013 Item No. 5.18 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 Contract, by and between the City of Lubbock and Community Housing Resource Board, from the Fiscal Year 2012-13 HOME Investment Partnership Grant Program for the Lease Purchase Program XVIII, and all related documents. 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 this October 10, 2013 , 2013 GLO. VR6BEIfT-SON, MAYOR ATTEST: Re4ecca Garza, Ci APPROVED AS TO CONTENT: Bill H,04rton, CD DirectqWCitibus Liaison APPROVED AS TO FORM: AM�`im , i orney gsIHOME Investment Partnershp Grant Prog, Lease Purchase Prog XVIII.res 9.10.13 Resolution N0. 2013-RO333 COMMUNITY DEVELOPMENT FUNDING AGREEMENT BETWEEN THE CITY OF LUBBOCK AND COMMUNITY HOUSING RESOURCE BOARD STATE OF TEXAS COUNTY OF LUBBOCK THIS AGREEMENT entered this loth day ofioct,, 2013 by and between the City of Lubbock (herein called the "City") and Community Housing Resource Board (CHRB), (herein called the "Grantee"). WHEREAS, the City is obligated to do and perform certain services in its undertaking of the HOME Investment Partnership 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 Lease Purchase XVIII Program (2012-13) which will provide funds to enhance its ability to provide affordable housing for low -to -moderate income individuals. WHEREAS, the services provided by the Grantee benefit residents of the area and constitute a valuable public service; and 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 CHDO Lease Purchase XVIII (2012-13) Program and that the City will receive adequate consideration in the form of substantial public benefit; and NOW, THEREFORE, it is agreed between the parties hereto that: Community Housing Resource Board Lease Purchase XVIII 2012-2013 HOME Funding Agreement Page 1 I. SCOPE OF SERVICE A. Activities The Grantee will be responsible for administering a HOME Program CHDO Lease Purchase XVIII Program 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 $125,008.65 pay for the purchase of existing homes for rehabilitation and upon completion make those homes available to eligible homebuyers of low to moderate income. The lease/purchase program enables low to moderate -income families to become homeowners within a two year period by providing a forgivable loan in the amount up to $3,500.00 for down payment and closing costs. The program provides counseling and budgeting. 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 $125,008.65 for the CHDO Lease Purchase XVIII in return for Grantee performing the activities 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. Community Housing Resource Board Lease Purchase XVIII 2012-2013 HOME Funding Agreement Page 2 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. 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. Community Housing Resource Board Lease Purchase XVIII 2012-2013 HOME Funding Agreement Page 3 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 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 acquired and rehabilitated 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 and/or prior to the acquisition of any single-family home. 13. Grantee shall submit to City a request for a review of all work specifications prior to the beginning of the procurement 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 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 will sell houses to eligible low income home buyers who qualify for a mortgage loan or owner -finance as necessary and service the loans in- house upon completion of the lease portion of the Lease/Purchase Agreement. Community Housing Resource Board Lease Purchase XVIII 2012-2013 HOME Funding Agreement Page 4 17. Grantee agrees that contracts, agreements and deed of trusts with homebuyers will include affordability requirements as defined in the HOME regulations. 18. Grantee agrees that any interests or assets obtained with HOME 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 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. F. Project 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 project proceeds into additional properties for the CHDO Lease Purchase Program except as follows: 1. To pay for 25% return of investment to City. (See Special Conditions VI.) 2. To pay for insurance and maintenance of properties. 3. To pay for up to 10% of project proceeds for administration. G. 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: HOME: Program Lease Purchase XVIII TimPlinP Accomplishments October 10, 2013 - Community Development (CD) Staff performs September 30, 2015 environmental reviews and CD Inspectors inspect all properties before acquiring properties for the Lease Purchase Program. Existing homes are purchased, rehabilitated and made available to low to moderate income homebuyers. Requirements for environmental reviews, lead-based paint, City permits and Community Housing Resource Board Lease Purchase XVIII 2012-2013 HOME Funding Agreement Page 5 II. H. Staffing Staff Member Maggie Trejo June Rangel Edelmira "Bibi" Licon I. Performance Monitoring periods of affordability are met. Homebuyer Homebuyer Education is provided. Two Housing Units. Title Executive Director Administrative Assistance Office Clerk 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 basis 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. Monitoring timeline will be as follows: • Notification letter sent to grantee at least 15 days before monitoring visit. • Monitoring letter sent to grantee identifying concerns and findings if any within thirty (30) days of monitoring visit. • Grantee must provide a written response within thirty (30) days to 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. TIME OF PERFORMANCE Services of the Grantee shall start on the 10th day of October 2013, and end on the 30th day of September 2015. 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 funds or other assets, including program income. Community Housing Resource Board Lease Purchase XVIII 2012-2013 HOME Funding Agreement Page 6 III. BUDGET Line Item: Amount: Lease Purchase Acquisition/Rehabilitation $125,008.65 Total: $125,008.65 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 contract shall not exceed $125,008.65 for the CHDO Lease Purchase XVIII. Draw downs 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. V. NOTICES Communication and details concerning this contract shall be directed to the following contract representatives: Community Housing Resource Board Lease Purchase XVIII 2012-2013 HOME Funding Agreement Page 7 Cily Rhonda Gentry City of Lubbock P. O. Box 2000 Lubbock, TX 79457 VI. SPECIAL CONDITIONS Grantee Maggie Trejo CHRB 1628 Main Street Lubbock, TX 79401 Return of Investment - 25% - Grantee may payback 25% from project proceeds as follows or reinvest funds into additional lease purchase homes for eligible home buyers in lieu of payback. If Grantee opts a payback, Grantee will have the option of paying back in one lump sum 30 -days after completion of the project or equal payments for up to ten years with no interest charged. If the payment is not received by the 16'h day of the month, a late payment charge which shall be from day-to-day be equal to the lesser of (a) Four percent (4%) (the "Contract Rate'% or (b) the Maximum Rate. Notwithstanding the foregoing, if at any time the Contract Rate shall exceed the Maximum Rate, thereby causing the late payment to be limited to the Maximum Rate, then any subsequent reductions in the Contract Rate shall not reduce the rate of late payments accrued hereon equals the amount of late payments which would have accrued hereon if the Contract Rate had at all times been in effect. The term "Maximum Rate'; as used herein, shall mean, with respect to the holder hereof, the maximum nonusurious interest rate, if any, that at any time, or from time to time may under applicable law be contracted for, taken, reserved, charged or received on the indebtedness by this Contract. Project Proceeds /Recaptured Funds: Project Proceeds from the sale of the homes must be reinvested into the program of acquiring and rehabilitating more homes for the Lease Purchase Program which will be subject to monitoring every year to ensure that funds are being reinvested in that manner under CPD Notice 97-9, 24 CFR 92.254(a)(5)(ii) and 24 CFR 92.503(c). Any recaptured funds, if applicable, must be returned to the City. VII. GENERAL CONDITIONS A. General Compliance 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 contract. The Grantee further agrees to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available. Community Housing Resource Board Lease Purchase XVIII 2012-2013 HOME Funding Agreement Page 8 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. D. Richt 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 contract. F. Insurance and Bonding Community Housing Resource Board Lease Purchase XVIII 2012-2013 HOME Funding Agreement Page 9 The Grantee shall carry sufficient insurance coverage to protect contract assets from loss due to theft, fraud and/or undue physical damage, and at a minimum, shall purchase a blanket fidelity bond covering all employees in an amount equal to cash advances from the City. The 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 contract. All activities, facilities, and items utilized pursuant to this contract 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 contract. 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 contract at any time by giving written notice to the other party of such termination and specifying the effective date thereof at least 30 days before the effective date of such termination. Partial termination of the Scope of Service in Paragraph I.A. above may only be undertaken with the prior approval of the City. In the event of any termination for convenience, all finished or unfinished documents, data, studies, surveys, maps, models, photographs, reports or other materials prepared by the 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 Community Housing Resource Board Lease Purchase XVIII 2012-2013 HOME Funding Agreement Page 10 any applicable rules or regulations, the City may withhold up to fifteen percent (15%) of said contract 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. VIII. ADMINISTRATIVE REQUIREMENTS A. Financial Management 1. Accounting 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- 122, "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, that are pertinent 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 assistance, as applicable; d. Records documenting compliance with the fair housing and equal opportunity components of the HOME program; 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. Community Housing Resource Board Lease Purchase XVIII 2012-2013 HOME Funding Agreement Page 11 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 contract 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 contract 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) years 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 contract 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 contract, 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. Property Records The Grantee shall maintain real property inventory records which clearly identify properties purchased, improved or sold. Properties retained shall continue to meet Community Housing Resource Board Lease Purchase XVIII 2012-2013 HOME Funding Agreement Page 12 eligibility criteria and affordability requirements of 24 CFR 92.252 or 92.254, as applicable. 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 contract 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 contract, 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 contract for costs incurred by the City on behalf of the Grantee. 2. Performance Reports Community Housing Resource Board Lease Purchase XVIII 2012-2013 HOME Funding Agreement Page 13 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. The initial Performance and Financial Report is required by the 20'h of the following month after program activity starts. Grantee shall continue to submit the reports monthly no later than the 20`h of each month, the final financial report and request for reimbursement must be in by September 30, 2015. The performance report will remain due by the 20th of the following month. Reporting will continue from the start of program activity until funding is completed and the houses are sold. 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. All program assets purchased with such funds (unexpended program income, property, equipment, etc.) shall revert to the City upon termination of this contract. 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. 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 Community Housing Resource Board Lease Purchase XVIII 2012-2013 HOME Funding Agreement Page 14 (families, individuals, businesses, nonprofit organizations and farms) that are displaced as a direct result of acquisition, rehabilitation, demolition or conversion for a HOME -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, marital/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 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 contract 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 contract, 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. Community Housing Resource Board Lease Purchase XVIII 2012-2013 HOME Funding Agreement Page 15 4. Section 504 The Grantee agrees 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 contract. 5. Reports The Grantee shall maintain a report that documents the race/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 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. �J_U 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 contract. As used in this contract, the term "minority and female business enterprise" means a business at least fifty-one percent (51 %) owned and controlled by minority group members or women. For the purpose of this definition, "minority group members" are Afro-Americans, Spanish-speaking, Spanish - surnamed or Spanish -heritage Americans, Asian -Americans, and American Indians. The 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 Community Housing Resource Board Lease Purchase XVIII 2012-2013 HOME Funding Agreement Page 16 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 Activi 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 Federal, state and local laws and regulations pertaining to labor standards insofar as those acts apply to the performance of this contract. 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 Community Housing Resource Board Lease Purchase XVIII 2012-2013 HOME Funding Agreement Page 17 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 contract, 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 contract, shall be a condition of the Federal financial assistance provided under this contract 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 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." The Grantee further agrees to ensure that opportunities for training and employment arising in connection with a housing rehabilitation (including Community Housing Resource Board Lease Purchase XVIII 2012-2013 HOME Funding Agreement Page 18 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 -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 -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 contract without the prior written consent of the City thereto; provided, however, that claims for money Community Housing Resource Board Lease Purchase XVIII 2012-2013 HOME Funding Agreement Page 19 due or to become due to the Grantee from the City under this contract 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 contract without the written consent of the City prior to the execution of such agreement. b. 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. C. Content The Grantee shall cause all of the provisions of this contract 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 contract, 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 Lease Purchase XVIII 2012-2013 HOME Funding Agreement Page 20 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 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. Lobbying Certification - Paragraph d Community Housing Resource Board Lease Purchase XVIII 2012-2013 HOME Funding Agreement Page 21 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. Copyright If this contract 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. 7. Religious Organization The Grantee agrees that funds provided under this contract 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 contract: 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 Community Housing Resource Board Lease Purchase XVIII 2012-2013 HOME Funding Agreement Page 22 The Grantee agrees that any construction or rehabilitation of residential structures with assistance provided under this contract 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 contract. 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. Community Housing Resource Board Lease Purchase XVIII 2012-2013 HOME Funding Agreement Page 23 XII. 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. IN WITNESS WHEREOF, the Parties have executed this contract as of the date first written above. CITY OF LUBBOCK Glen . obert on Mayor FIN 0ION 6 Reb cca Garza, City Secretary APPROVED AS TO Bill HowWn, Cbmmunity APPROVED AS TO FORM: Amy SiAstant City Attorney COMMUNITY HOUSING RESOURCE BOARD t t Mag e Tlyjo&q Executive Director D. A. Smith, President FED. I.D. # 75-2052605 Citibus Liaison Community Housing Resource Board Lease Purchase XVIII 2012-2013 HOME Funding Agreement Page 24