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HomeMy WebLinkAboutResolution - 3820 - Funding Agreement - SPAG - Loan Guarantee Program - 02/27/1992Resolution No. 3820 February 27, 1992 Item #16 DWM:js RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Community Development Funding Agreement between the City of Lubbock and the South Plains Association of Governments for the Loan Guarantee Program, attached herewith, which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 27th day of February 1992. T , g1M my . ATTEST: Lvv vvJ V . VJ APPROVED AS TO CONTENT: Sandy 09 e ee, Xbmmunity Development AdministriUr 1APPROVED AS TO FORM: nnis w. McGill, Iria CD-SPAGAES/DS-Agenda Resolution No. 3820 February 27, 1992 Item 416 COMMUNITY DEVELOPMENT FUNDING AGREEMENT/CONTRACT FOR THE LOAN GUARANTEE PROGRAM BETWEEN THE CITY OF LUBBOCK AND THE SOUTH PLAINS ASSOCIATION OF GOVERNMENTS STATE OF TEXAS § COUNTY OF LUBBOCK § This Agreement is entered into this 27th day of February , 19 92 between the City of Lubbock, Texas, a home rule municipal corporation, hereinafter called "City" and The South Plains Association of Governments, a council of governments hereinafter called "Grantee". WITNESSETH: WHEREAS, the City is obligated to do and perform certain services in its undertaking of a Community Development Plan pursuant to the Housing and Development Act of 1974, as amended; and WHEREAS, the Grantee is a council of governments corporation which has a primary purpose to promote, assist and enhance activities for area counties and small cities; and WHEREAS, the services provided by the Grantee benefit citizens of the City of Lubbock and constitute a valuable public service; and WHEREAS, 'the City Council of the City of Lubbock has declared the economic development services to be 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 provision 24 CFR 570.203 of the Community Development Block Grant Regulation for economic development; and WHEREAS, the accomplishment of the public purpose is the predominant purpose of the 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 administration of economic development projects and that the City will receive adequate consideration in the form of substantial public benefit; and WHEREAS, the City desires to contract with the Grantee to make available financial assistance for eligible businesses through the provision of public sector matching funds for the South Plains Association of Governments Revolving Loan Fund designed to assist new and existing businesses. NOW THEREFORE, the City and the The South Plains Association of Governments do hereby mutually agree as follows: 1. The'assistance made available through this Agreement shall be used by the Grantee solely for the purpose of providing economic development funds to eligible businesses and projects through the South Plains Association of Government's Revolving Loan Fund. The purposes of the Revolving Loan Program include: 1. Improve and expand the economic development opportunities through private sector job creation and capital formulation. 2. To diversify local economies. 3. Provide an additional financing resource for businesses located in the CDBG Target Area. 4. Provide an incentive for businesses to locate or expand in the City of Lubbock and the CDBG Target Area. 5. Provide new or additional neighborhood services in the CDBG Target Area. 6. Benefit low and moderate income persons, as defined by HUD guidelines, living in the City of Lubbock through the creation and retention of jobs. 2. This Contract shall commence on or as of terminate December 30, 1994 March 1, 1992 , and shall Grantee covenants and agrees that, in the event it desires to extend the terms of this Agreement beyond its stated date of expiration, it shall submit a written request for extension at least 30 days prior to the current expiration date hereof. The City is under no duty or obligation to grant the requested extension and that before'any such extension become effective, it must be in writing as an amendment to this Agreement and approved by the City Council of the City of Lubbock. It is understood and agreed that this Agreement may be terminated by the City or the Grantee at any time by giving at least 30 days notice in writing to the other party. The notice shall stipulate the effective date of termination and to what extent performance of the work is being terminated. After receipt of notice of termination, Grantee shall stop work under the Agreement on the date and to the extent specified in the notice of termination. Grantee covenants and agrees that in the event it fails to comply with or breaches any of the terms and provisions of the Agreement, City shall have the right to declare this Agreement immediately terminated, and City shall have no further responsibility or liability hereunder. 3. The City agrees to provide the Grantee assistance from Department of Housing and Urban Development funds in an amount not to exceed $44,500. It is understood and hereby agreed that it shall be the responsibility of the Grantee to perform and do the activities set forth Wthis agreement as consideration for the funds secured and provided by the City hereunder. 4. Upon receipt of appropriate receipts and documentation the City up to but not exceeding the approved funding limit shall issue reimbursement funding to Grantee for participation in the South Plains Association of Government's Revolving Loan Fund economic development projects. Upon Loan Fund Committee approval of a loan for inclusion in the South Plains Association of Government's Revolving Loan Program a request for the required public sector matching funds will be presented to the Grantee. The Grantee shall review the loan for compliance with the CDBG guidelines and determine compliance. The Grantee shall request the funding in accordance with this Agreement from the City of Lubbock and then remit to the South Plains Association of Government's Revolving Loan Fund the required funding. The funding will be provided as a grant to satisfy the necessary matching requirements. In the event Grantee has not used the entire funded amount upon the completion of this program upon termination of this Agreement, Grantee shall refund City that unused portion within 30 days of the completion or termination of this program. 5. It is expressly understood by Grantee that this assistance is made available as part of City's Community Development Block Grant program, and as such, the activities undertaken must comply with all of the rules and regulations established by said program, including those assurances and conditions which are incorporated in Part II of this contract and hereby adopted for all purposes. Such rules and regulations shall be made apart of any contract executed between the Grantee and the other interested parties which are required for the South Plains Association of Governments Revolving Loan Fund. Grantee agrees that the services provided by the Grantee under this Agreement shall be devoted primarily to assist low and moderate income individuals - 3' _ 6. Grantee further agrees to make its books and records available for inspection by any duly designated representative of the City, the.Department of Housing and Urban Development, and the City's independent auditors as the City may determine at any mutually convenient time. Grantee also agrees to provide City, the Department of Housing and Urban Development, and the City's independent auditors with such financial records as the City may from time to time require as proof of Grantee's compliance with any and all terms and conditions of the contract. Bank statements for interest accrual should be forwarded by Grantee to the Community Development Office on a monthly basis. All reports or other communications relative to this agreement shall be addressed to the Community Development Administrator. 7. The Grantee agrees to provide City with copies of all printed publicity, handout materials, reports, videotapes and any other published materials developed which are directly related to this program. 8. Grantee agrees to include an acknowledgment of CDBG funding on all publicity, handouts, reports, videotapes and any other published materials which are directly related to this program. 9. Grantee agrees to indemnify and hold the City harmless from and against all liability for injuries or death to persons, or damage to property caused by Grantee's performance of this Agreement or by the negligence of its agents or employees, or by any persons' use of educational materials developed by Grantee, and Grantee shall give to City prompt and timely written notice of any claim instituted which in anyway, directly or indirectly, contingently or otherwise, affects or might affect City and City shall have the right to compromise and defend same to the extent of its own i-nterests. 10. No officer or employee of the City; no member of its governing body; and no other public official of the governing body of the locality in which the program is situated or being carried out who exercises any functions or responsibilities in the review or approval of the undertaking or carrying out of this program shall participate in any decision relating to this Agreement which affects his or her personal interest or have any personal or pecuniary interest, direct or indirect, in this Agreement or the proceeds thereof. 11. No member of or delegate to the Congress of the United States and no Resident Commissioner shall be admitted to any share or -part of this Agreement or to any benefit to arise herefrom. 12. The Grantee shall not assign, sell or transfer any interest in this contract without the prior written consent of the City thereof. All fund interest r 4 will be retained for usage in future South Plains Association of Governments Revolving Loan Fund projects. 13. For purposes of determining venue and the law governing this agreement, activities performed under this Agreement are performed in the City and County of Lubbock, State of Texas. 14. This Agreement contains the entire Agreement of the parties. 15. None of the services covered by.this Agreement shall be subcontracted without the prior written consent of the City. IN WITNESS WHEREOF, the City and the.Grantee have executed this Agreement as of the first day above written. CITY OF LUBBOCK B. C. MCMINN, MAYOR ATTEST,: SOUTH PLAINS ASSOCIATION OF Rane a Boyd, City Secret ry GOU MENTS APPROVED AS TO CONTENT: �-: G✓ Jer y Cass ve s Sandy Ogle e, fdmmunity Ex cutive Director Development Administrator APPROVED 0 FORM: Abe Dennis Mc ill Trial Attorney PART II - TERMS AND CONDITIONS FUNDING AGREEMENT COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM Upon execution of the Funding Agreement of which this Part II -Terms and Conditions is a part, the City of Lubbock through its Community Development Department agrees to provide to the Grantee the Federal assistance under Title I of the Housing and Community Development Act of 1974 (P.L. 93-383) as authorized by the Funding Approval identified therein, subject to the terms and conditions of this Fundinq Agreement, applicable law, regulations and all other require- ments of the Department of Housing and Urban Development (HUD) now or hereafter in effect. The Funding Agreement is effective with respect to such assistance as of the date the Funding Agreement is executed and is subject to the HUD Community Development Block Grant Regulations at 24 CFR Part 570 and the following General Terms and Conditions: 1. Definitions: Except to the extent modified or supplemented by this Funding Agreement, anv term defined in Title I of the Housing and Community Development Block Grant Regulations at 24 CFR Part 570, shall have the same meaning when used herein. (a) Agreement means this Funding Agreement, as described above and any amendments or supplements thereto. (b) City means the City of Lubbock, Texas. (c) Grantee means any City Department or division, the Urban Renewal _Agency, or any other department or agency which is designated by the City to receive Community Development Block Grant funds for the purpose of carrying out the Community Development Program. (d) Assurances, when capitalized, means the certifications and assurances submitted with grant applications pursuant to the requirements of 24 CFR Part 570. (e) Assistance provided under this Agreement means the grants and any loans secured by loan guarantees provided under this Agreement. (f) Program means the Community Development program, project, or other activities, including the administration thereof, with respect to which.assistance is being provided under this Agreement. 2. "Section 3" Compliance in the Provision of Training Emolovment and Business O000rtunities: This Agreement is subject to the reouirements of Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.0 1701u), as amended, the HUD regula- tions issued pursuant thereto at 24 CFR Part 135, and any applicable rules and orders of HUD issued thereunder prior to the HUD authorization of the Funding Approval. The Grantee agrees that it shall be bound by, and shall cause or require to be inserted in full in all contracts and subcontracts for work financed in whole or in part with assistance provided under this Agreement, the Section 3 clause set forth below: TRAINING, EMPLOYMENT, AND CONTRACTING OPPORTUNITIES FOR BUSINESSES AND LONER INCOME PERSO1.S IN C'J�.":ECTIC 1-lIT". ."SSIST•EO PP.00ECT. ' A. The work to be performed under this Contract is on a project assisted under a program providing direct Federal financial assistance from the Department of Housing and Urban Development and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u. Section 3 requires that to the greatest extent feasible opportunities for training and employment be given lower income residents of the project area and contracts for work in connection with the project be awarded to business concerns which are located in or owned in substantial part by persons residing in the area of the project. B. The parties to this Contract will comply with the provisions of said Section 3 and the regulations issued pursuant thereto by the Secretary of Housing and Urban Development set forth in 24 CFR 135, (published in 38 Federal Register 29220, October 23, 1973), all applicable rules and orders of the Department issued thereunder prior to the execution of this Contract. The parties to this Contract certify and agree that they are under no contractual or other,disability which would prevent them from complying with these requirements. C. The contractor•will develop and implement an affirmative action plan for utilizing business concerns located within or owned in substantial part by persons residing in the area of the project; and making of a good faith effort, as defined by the regulations, to provide training, employment, and business opportunities required by Section 3 of the Housing and Urban Development Act of 1968. D. The contractor will send to each labor organization or representative or workers with which he has a collective bargaining agreement or other contract or understanding, if any, a notice advising the said labor organization or workers' representative of his commitments under this Section 3 clause and shall post copies of the notice in conspic- uous places available to employees and applicants for employment or training. E. The contractor will include this Section 3 clause in every subcontract for work in connection with the project and will, at the direction of the applicant for or recipient of Federal financial assistance, take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of reaulations issued by the Secretary of Housing and Urban Development, 24 CFR 135. The contractor will not subcontract with any subcontractor 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 subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. F. Compliance with the provisions of Section 3, the regulations set forth in 24 CFR 135, and all applicable rules and orders of the Department issued thereunder prior to the execution of the contract, shall be a condition of the Federal financial assistance provided to the project, binding upon the applicant or recipient for such assistance, its successors, and assigns. Failure to fulfill these requirements shall ,subject the applicant or recipient, its contractors and subcontrac- tors, its successors, and assigns to those sanctions specified by the grant or loan agreement or contract through which Federal assistance is provided, and to such sanctions as are specified by 24 CFR 135. The Grantee shall provide such copies of 24 CFR Part 135 as may be neces- sary for the information of parties to contracts required to contain the above Section 3 clause. 3. Flood Disaster Protection: The agreement is subject to the requirements of the Flood Disaster Protec- tion Act of 1973 (P.L. 93-234). No portion of the assistance provided under this Agreement is approved for acquisition or construction purposes as defined under Section 3(a) of said Act, for use in an area identified by the Secretary as having special flood hazards which are located in a community not then in compliance.with the requirements for participation in the national flood insurance program pursuant to Section 201(d) of said Act; and the use of any assistance provided under this Agreement for such acquisition or construction i.n such identified areas in communities then participating in the national flood insurance program shall be subject to the mandatory purchase of flood insurance requirements of Section 102(a) of said Act. Any contract or agreement for the sale, lease, or other transfer of land acquired, cleared or improved with assistance provided under this Agreement shall contain, if such land is .located in an area identified by the Secretary as having special flood hazards and in which the sale of flood insurance has been made available under the National Flood Insurance Act of 1968, as amended 42 U.S.C. 4001 et seq., provisions obligating the transferee and its successors or assigns to obtain and maintain, during the ownership of such land, such flood insurance as required with respect to financial assistance for acquisition or construction purposes under Section 102(a) of the Flood Disaster Protection Act of 1973. Such provisions shall be required notwithstanding the fact that the construction on such land is not itself funded with assistance provided under this Agreement. 4. Eaual Employment Oopoctunity: (a) Activities and contracts not subject to Executive Order 11246, as amended. In carrying out the program, the Grantee shall not discrim- inate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The Grantee shall take affirmative action to insure that applicants for employment are employed, and the employees are treated during their employment, without regard to their race, color, religion, sex, or national origin. Such action shall include, but not limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruit- ment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Grantee shall post in conspicuous places, available to employees and applicants for employment, notices to be provided by the Govern- ment setting for the provisions of this nondiscrimination clause. The Grantee shall state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. The Grantee shall incorporate the foregoing requirements of this paragraph (a) in all of its contracts for program work, except contracts governed by paragraph (b) of this section, and will reouire all of its contractors for such work to incorporate such requirements in all subcontracts for program work. (b) Contracts subject to Executive Order 11246. as amended. Such con- tracts shall be subject to HUD Equal Employment Opportunity regula- tions at 24 CFR Part 130 applicable to HUD assisted construction contracts. The Grantee shall cause or reauire to be inserted in full in any nonexempt contract and subcontract for construction work, or modification thereof, as defined in said regulations, which is paid for in whole or in part with assis- tance provided under this Agreement, the following equal opportunity clause: During the performance of this Contract, the contractor agrees as follows: (1) The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The contractor will take affirmative action to ensure that applicants. are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: Employment, upgrading, demotion, or transfer, recruit- ment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees.to post in.conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting officer setting forth the provisions of this nondiscrimination clause. (2) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. (3) The contractor will send to each labor •,mien or representative of workers with which he has a collective bargaining agreement or other - contract or understanding a notice to be provided by the Contract Compliance Officer advising the said labor union or workers' repre tatives of the contractor's commitment under this section and shall post copies of the notice in places available to employees and applicants for employment. (4) The contractor will comply with all provisions to Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. (5) The contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records and accounts by the City and by the Department of Housing and Urban Development and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders. (6) In the event of the contractor's noncompliance with the nondiscrimina- tion clauses of'this contract or with any of such rules, regulations, or orders, this contract may be canceled, terminated or suspended in whole or in part and the contractor may be declared ineligible for further Government contracts or federally assisted construction contract procedures authorized in Executive Order 11246 of September 24, 1965, or by rule, regulations, or order of the Secretary of Labor, or as otherwise provided by law. (7) The contractor will include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the Department may direct as a means of enforcing such provisions, including sanctions for noncompliance; provided, however, that in the event a contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the Department, the contractor may request the United States to enter into such litigation to protect the interest of the United States. The Grantee further agrees that it will be bound by the above equal opportunity clause with respect to its own employment practices when it participates in federally assisted construction work; provided, that if the Grantee so participating is a State or local government, the above equal opportunity clause is not applicable to any agency, instrumentality or subdi- vision of such government which does not participate in work on or under the contract. The Grantee agrees that it will assist and cooperate actively with the City, HUD, and the Secretary of Labor in obtaining the compliance of contractors and subcontractors with the equal opportunity clause and the rules, regulations, and relevant orders of the Secretary of Labor; that it will furnish the City, HUD, and the Secretary of Labor such information as they may require for the supervision of such compliance; and that it will otherwise assist the City and HUD in the discharge of HUD's primary responsibility for securing compliance. The Grantee further agrees that it will refrain from entering into any contract or contract modification subject to Executive order 11246 of September 24, 1965, with a contractor debarred from, or who has not demonstrated eligibi- lity for, Government contracts and federally assisted construction contracts pursuant to the executive order and will carry out such sanctions and penalties for violation of the equal opportunity clause as may be imposed upon contractors and subcontractors by the Department or the Secretary of Labor pursuant to Part II, Sub -Part D of the executive order. In addition, the Grantee agrees that if it -.fails or refuses to comply with these undertakings, the City or the Depart- ment of Housing and Urban Development may take any or all of the following actions: Cancel, terminate, or suspend in whole or in part the grant or loan guarantee; refrain from extending any further assistance to the Grantee under the program with respect to which the failure or rcfusel cccurred until satis- factory assurance of future compliance has been received from such Grantee; and refer the case to the Department of Justice for appropriate legal proceedings. 5. Aae Discrimination Act of 1975 and Rehabilitation Act of 1973 Section 109 of the Act further provides that any prohibition against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 U.C.C. 6101 et seq.) or with respect to an otherwise qualified handicapped individual as provided in Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) shall also apply to any program or activity funded in whole or in part with funds made available pursuant to the Act. 6. Lead -Based Paint Hazards: The construction or rehabilitation of residential structures with assis- tance provided under this Agreement is subject to the HUD Lead -Based Paint regulations, 24 CFR Part 35. Any grants or loans made through the Grantee for the rehabilitation of residential structures with assistance provided under this Agreement shall be made subject to the provisions for the elimination of lead-based paint hazards under Sub -Part B of said regulations, and the Grantee shall be responsible for the inspections and certificates required under Section 35.14(f) thereof. 7. Compliance with Air and Mater Acts: This Agreement is subject to the requirements of the Clean Air Act, as amended, 42 U.S.C. 1857 et seq., the Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251 et seq., and theregulations of the Environmental Protection Agency with respect thereto, at 40 CFR Part 15, as amended from time to time. In compliance with said regulations, the Grantee shall cause or require to be inserted in full in all contracts and subcontracts with respect to any nonexempt transaction thereunder funded with assistance provided under the Agreement, the following requirements: 1. A stipulation by the contractor of subcontractors that any facility to be utilized in the performance of any nonexempt contract or subcon- tract is not listed on the List of Violating Facilities issued by the Environmental Protection Agency (EPA) pursuant to 40 CFR 15.20. 2. Agreement by the contractor to comply with all the requirements of Section 114 of the Clean Air Act, as amended, (42 U.S.C. 1857c-8) and Section 308 of the Federal (Vater Pollution Control Act, as amended, (33 U.S.C. 1318) relating to inspection, monitoring, entry, reports, and information, as well as all other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder. (3) A stipulation that as a condition for the award of the contract prompt notice will be given of any notification received from the Director, Office of the Federal Activities, EPA, indicating that a facility utilized for the contract is under consideration to be listed on the EPA of Violating Facilities. (4) Agreement by the contractor that he will include or cause to be included the criteria and requirements in paragraphs (1) through (4) of this section in every nonexempt subcontract and requiring that the contractor will take such action as the Government may direct as a means of enforcing such provisions. In no event shall any amount of the assistance provided under this Agree- ment be utilized with respect to a facility which has given rise to a conviction under Section 113(c)(1) of the Clean Air Act or Section 309(c) of the Federal Water Pollution Control Act. 8. Federal Labor Standards Provisions: Except with respect to the rehabilitation of residential property designed for residential use for less than eight families, the Grantee and all contrac- tors engaged under contracts in excess of $2,000 for the construction, prosecu- tion, completion or repair of any building or work financed in whole or in part with assistance provided under this Agreement, shall comply with HUD require- ments pertaining to such contracts and the applicable requirements of the regulations of the Department of Labor under 29 CFR Parts 3, 5 and 5a, governing the payment of wages and the ratio of apprentices and trainees to journeymen; provided, that if wage rates higher than those required under such 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 rates. The Grantee shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of 29 CFR 5.5 and, for contracts in excess of $10,000, 29 CFR 5a.3. No award of the contracts covered under this Section of the Agreement shall be made to any contractor who is at the time ineligible under the provisions of any applicable regulations of the Department of Labor to receive an award of such contract. 9. Nondiscrimination Under Title VI of the Civil Rights Act of 1964: This Agreement is subject to the requirements of Title VI of the Civil Rights Act of 1964 (P.L. 88-352) and HUD regulations with respect thereto including the regulations -under 24 CFR Part I. In 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 in-,,prtpd in the deed or lease for such transfer, orohibitinq discrimination upon the basis of race, color, religion, sex, or national origin, in the sale, lease or rental, or in the use or occupancy of such land or any improvements erected or to be erected thereon, and providing that the City and the United States are beneficiaries of and entitled to enforce such covenant. The Grantee in undertaking its obligation in carrying out the program assisted hereunder, agrees to take such measures as are necessary to enforce such covenant and will not itself so discriminate. 10. Obligations of Grantee with Resoect to Certain Third Party Relationsnios- The Grantee shall remain fully obligated under the provisions of the Agreement notwithstanding its designati.on of any third party or parties for the undertaking of all or any part of the program with respect to which assistance is being provided under lawful requirements of the City necessary to insure that the program with respect to which assistance is being provided under this Agreement to the Grantee is carried out in accordance with the City's Assurances and certificates including those with respect to the assumotion of environmental responsibilities of the City under Section 104(h) of the Housing and Community Development Act of 1974. 11. Uniform Administrative Recuirements: The Grantee shall comply with the applicable Uniform Administrative Requirements of 24 CFR 570.502(b), including compliance with, the requirements and standards of OMB Circular No. A-122, "Cost Principles for Non Profit Organizations" and with the following Attachments to OMB Circular No. A-110: (a) Attachment A, "Cash Depositories", except for paragraph 4 concerning deposit insurance; (b) Attachment B, "Bonding and Insurance"; (c) Attachment C, "Retention and Custodial Requirements for Records", except that in lieu of the provisions in paragraph 4, the retention period for records pertaining to individual CDBG activities starts from the date of submission of the annual performance and evaluation report, as prescribed in 24 CFR §570.507, in which the specific activity is reported on for the final time; (d) Attachment F, "Standards for Financial Management Systems"; (e) Attachment H, "Monitoring and Reporting Program Performances Paragraph 2; (f) Attachment N, "Property Management Standards", except for paragraph 3 concerning the standards for real property, and except that paragraphs 6 and 7 are modified so that - (1) in all cases in which personal property is sold, the proceeds shall be program income, and (2) personal property not needed by the Grantee for CDBG activities shall be transferred to the City for the CDBG program or shall be retained after compensating the City; and (g) Attachment 0, "Procurement Standards." - r - i 12. Interest of Certain Federal Officials: No member of or Delegate to the Congress of the United States, and no Resident Commissioner, shall be admitted to any share or part of this Agreement or to any benefit to arise from the same. 13. Interest of Members Officers or Employees of City, Members of Local o-vernino Bodv, or Other Public Officials: No member, officer, or employee of the City, or its designees or agents, no member of the governing body of the locality in which the program is situated, and no other public official of such locality or localities who exercise any functions or responsibilities with respect to the program during tcnurz cr r.,r cne year thereafter- chall have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work to be performed in connection with the program assisted under the Agreement. The Grantee shall incorporate, or cause,to be incorporated, in all such contracts or subcontracts a provision prohibiting such interest pursuant to the purposes of this Section. 14. Prohibition Against Payments of Bonus or Commission: The assistance provided under this Agreement shall not be used in the payment of any bonus or commission for the purpose of obtaining HUD approval of applications for additional assistance, or any other approval or concurrence of HUD required under this Agreement, Title I of the Housing and Community Development Act of 1974 or HUD regulations with respect thereto; provided, however, that reasonable fees or bona fide technical, consultant, managerial or other such services, other than actual solicitation, are not hereby prohibited if otherwise eligible as program costs.