2014/07/01 Fair Housing Council of Riverside County, Inc. CDBG FY15 Fair Housing services COMMUNITY DEVELOPMENT BLOCK GRANT AGREEMENT
BETWEEN
CITY OF MENIFEE
AND
FAIR HOUSING COUNCIL OF RIVERSIDE COUNTY, INC
FOR
FAIR HOUSING SERVICES FOR THE CITY OF MENIFEE
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
THIS COMMUNITY DEVELOPMENT BLOCK GRANT AGREEMENT
("Agreement"), entered into as of this � day of Clckober , 20 JL} by and between the
CITY OF MENIFEE, a California municipal corporation ("Grantee"), and FAIR HOUSING
COUNCIL OF RIVERSIDE COUNTY, INC., a California nonprofit corporation
("Subrecipient").
RECITALS
WHEREAS, Grantee participates in the Community Development Block Grant program
administered by the United States Department of Housing and Urban Development ("HUD")
under Title I of the Housing and Community Development Act of 1974 (42 U.S.C. §§ 5301 et
seq.) as amended from time to time, and the regulations promulgated thereunder (24 C.F.R.
§§ 570 et seq.). Pursuant to the Community Development Block Grant program, Grantee
receives funds from HUD ("CDBG Funds") to be used for the support of community
development activities that meet at least one of the three national objectives of the program: (i)
benefiting low and moderate income persons, (ii) preventing and eliminating slums and blight,
and (iii) addressing a community development need having a particular urgency;
WHEREAS, Subrecipient is a nonprofit organization dedicated to providing
comprehensive services, which affirmatively address and promote fair housing (anti-
discrimination) rights and further other housing opportunities for all persons without regard to
race, color, national origin, religion, age, sex, familial status (i.e., presence of children),
disability, ancestry, marital status, age, source of income, sexual orientation, genetic information,
or other arbitrary factors, to the communities of the County of Riverside and surrounding areas,
including the area encompassed by Grantee;
WHEREAS, Subrecipient desires to utilize CDBG Funds provide services to people in
County of Riverside and surrounding areas, including residents of Grantee;
WHEREAS, Grantee desires to assist Subrecipient with the foregoing by providing
financial assistance to Subrecipient in the form of a grant of CDBG Funds in the amount not to
exceed Twenty Thousand Dollars ($20,000.00) ("City Grant") to be used by Subrecipient for
certain expenses related to the Program, more particularly described herein as the "Eligible
Project Expenses"; and
WHEREAS, Grantee's provision of the City Grant to Subrecipient pursuant to this
Agreement, and the fulfillment generally of this Agreement, are in the vital and best interests of
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Grantee and the welfare of its residents, and in accordance with the purpose and provisions of the
Community Development Block Grant program.
NOW, THEREFORE, based upon the foregoing Recitals and for good and valuable
consideration, the receipt and sufficiency of which is acknowledged by both parties, Grantee and
Subrecipient hereby agree as follows:
I. SCOPE OF SERVICE
A. Program
Subrecipient will be responsible for administering a Community Development Block
Grant ("CDBG") Year 2014-2015 Fair Housing and Landlord Tenant Counseling Program
("Program") in a manner satisfactory to Grantee and consistent with any standards required as a
condition of providing these funds. Such program will include the following activities eligible
under the CDBG program:
Program Delivery
Activity #1: Fair Housing services designed to further the fair housing objectives of the
Fair Housing Act, fair housing enforcement, education, and outreach activities
("Services"). Services will include, but are not limited to, landlord tenant mediation
services, anti-discrimination services, foreclosure prevention counseling, lead hazard
control education, first-time homebuyer education, and cool centers during the summer
months. Services will be provided to at least four hundred(400) Low and Moderate
Income ("LMI")persons.
General Administration
Subrecipient will be responsible for the general administration of the Program activities
set forth herein in a manner satisfactory to Grantee and consistent with the standards set
forth in this Agreement. General administration of the Program includes the following
activities:
1. Project Monitoring
2. Project Fiscal Management
3. Project Reporting
B. National Objectives
All activities funded with CDGB Funds must meet one of the CDBG program's national
objectives: (i) benefiting low and moderate income persons, (ii) preventing and eliminating
slums and blight, and (iii) addressing a community development need having a particular
urgency, as defined in 24 C.F.R. § 570.208.
Subrecipient certifies that the Services will meet one of the CDBG program's national
objectives by providing services that directly benefit LMI persons. Subrecipient will provide the
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Services to a minimum of four hundred (400) LMI persons. Subrecipient shall document and
maintain records of the number of LMI persons served throughout the year.
C. Levels of Accomplishment-Goals and Performance Measures
Subrecipient agrees to provide the following levels of program services:
Activity Total Units/Year
Activity#11 At Least Four Hundred(400)LMI Persons
LMI person is defined as a person having an income equal or less to than 80% of the
area median income, and outlined in the following table, or persons presumed to be LMI
in accordance with 24 C.F.R. §570.208(2)(a).
Riverside County Area Median Income (Fiscal Year 2014): $60,700
Extremely Low Income
Family Limits Very Low Income Limits Low Income Limits
Members 30% of Median 50% of Median 80%of Median
In
Household Annual Monthly Annual Monthly Annual Monthly
1 $12,750 $1,063 $21,250 S11771 $34,000 $2,833
2 $14,600 $1,217 $24,300 $2,025 $38,850 $3,238
3 $16,400 $1,367 $27,350 S2,279 $43,750 $3,646
4 $18,200 $1,517 $30,350 S2,529 $48,550 $4,046
5 $19,700 $1,642 $32,800 S2,733 $52,450 $4,371
6 $21,250 $1,771 $35,250 $2,938 $56,350 $4,696
7 $22,600 $1,883 $37,650 $3,138 $60,250 $5,021
8 $24,050 $2,004 $40,100 S3,342 $64,100 $5,342
D. Staffing
Subrecipient shall ensure adequate and appropriate staffing is allocated to performance of
the Services. 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.
Subrecipient shall at all times remain an "independent contractor" with respect to the services to
be performed under this Agreement. Grantee shall be exempt from payment of all
Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers'
Compensation Insurance, as Subrecipient is an independent contractor.
E. Performance Monitoring
Grantee will monitor the performance of Subrecipient against goals and performance
standards stated above. Substandard performance as determined by Grantee will constitute
noncompliance with this Agreement. If action to correct such substandard performance is not
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taken by Subrecipient within ten (1 0) days after being notified by Grantee of such substandard
performance, Grantee may, but is not required to, initiate contract suspension or termination
procedures to suspend or terminate this Agreement.
II. TIME OF PERFORMANCE
Services shall start on the 1 st day of July, 2014, and end on the 30th day of June, 2015.
The term of this Agreement and the provisions herein shall be extended to cover any additional
time period during which Subrecipient remains in control of CDBG Funds or other CDBG asset,
including Program income.
III. BUDGET
Subrecipient shall apply the City Grant funds received from Grantee under this
Agreement in accordance with the line item budget set forth as follows:
Eligible Project Expense Amount
Salaries $11,216.07
Fringe Benefits/Taxes 2,215.50
Office Space (Program only) 2,676.93
Utilities (Telephone) 472.90
Equipment 1,400.00
Insurance 393.14
Supplies and Materials 557.69
Mileage (Travel) 25.00
Consultants & Admin 873.24
Other(Maintenance) 169.53
Indirect Costs (Specify) 0.00
TOTAL $20,000.00
Any indirect costs charged mist be consistent with the conditions of this Agreement. In
addition, Grantee may require a more detailed budget breakdown than the one contained herein,
and Subrecipient shall provide such supplementary budget information in a timely fashion in the
form and content prescribed by Grantee. Any amendments to the budget must be approved in
writing by both Grantee and Subrecipient.
IV. PAYMENT
It is expressly agreed and understood that the total amount to be paid by Grantee under
this Agreement shall not exceed Twenty Thousand Dollars ($20,000.00). Drawdowns for the
payment of Eligible Project Expenses shall be made against the line item budget specified in
Section III (Budget) herein and in accordance with performance of the Services. Expenses for
general administration shall also be paid against the line item budgets specified in Section III
(Budget) and in accordance with performance of the Services.
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City Grant payments shall be made to:
Fair Housing Council of Riverside County, Inc.
P.O. Box 1068
Riverside, CA 92502-1068
Payments may be contingent upon certification of Subrecipient's financial management
system in accordance with the standards specified in 24 C.F.R. § 84.21.
V. NOTICES
Subrecipient shall notify Grantee of any of the following changes:
• Loss of Non-Profit Status; or
• Change in leadership of Subrecipient or changes in staff administering this
Agreement.
Notices required by this Agreement shall be in writing and delivered via mail (postage
prepaid), commercial courier, or personal delivery or sent by facsimile or other electronic means.
Any notice delivered or sent as aforesaid shall be effective on the date of delivery or sending.
All notices and other written communications under this Agreement shall be addressed to the
individuals in the capacities indicated below, unless otherwise modified by subsequent written
notice.
Communication and details concerning this contract shall be directed to the following
contract representatives:
Grantee Subrecipient
Robert Lennox, Community Services Director Rose Mayes, Exec. Director
City of Menifee Fair Housing of Riverside County
29714 Hann Road 3933 Mission Inn Avenue
Menifee, CA 92586 Riverside, CA 92501
Phone: (951) 672-6777 Phone: (951) 682-6581
Fax: (951) 679-3843 Fax: (951) 682-0262
VI. SPECIAL CONDITIONS
None
VII. GENERAL CONDITIONS
A. General Compliance
Subrecipient shall carry out the Services and operate the Program in conformity with all
applicable Federal, state, and local laws, regulations, and rules of governmental agencies having
jurisdiction, including without limitation, the CDBG Requirements (except that (1) Subrecipient
does not assume the environmental responsibilities described in 24 C.F.R. § 570.604, and (2)
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Subrecipient does not assume the responsibility for initiating the review process under the
provisions of 24 C.F.R. Part 52) and the legal requirements set forth in Exhibit A attached to this
Agreement and the statutes referenced therein, all provisions of the Municipal Code of the City
of Menifee, and all federal and state fair labor standards, including the payment of prevailing
wages and compliance with the Davis-Bacon Act. "CDBG Requirements" shall collectively
refer to the requirements of Title I of the Housing and Community Development Act of 1974 (42
U.S.C. §§ 5301 et seq.) as amended from time to time, and the implementing regulations set
forth in 24 C.F.R. §§ 570 et seq. as amended from time to time, and the requirements set forth
and referred to in Exhibit A attached to this Agreement. Subrecipient further agrees to utilize
funds available under this Agreement to supplement rather than supplant funds otherwise
available. In the case of any conflict between the CDBG Requirements and this Agreement, the
CDBG Requirements shall control; it being understood, however, that in order to be in
compliance with this Agreement and the CDBG Requirements, Subrecipient shall, to the extent
possible, comply with the most restrictive provisions in this Agreement and the CDBG
Requirements. Each and every provision required by law to be included in this Agreement shall
be deemed to be included, and this Agreement shall be read and enforced as though all such
provisions were included. Subrecipient acknowledges and agrees that it shall be and remain, and
shall cause Subrecipient personnel to be and remain, fully knowledgeable and apprised of all
local, state and federal laws, rules, and regulations in any manner affecting the performance
under this Agreement, including the CDBG Requirements. Subrecipient shall indemnify,
protect, defend, and hold harmless Grantee and its officials, officers, employees, and agents,with
counsel reasonably acceptable to Grantee, from and against any and all loss, liability, damage,
claim, cost, expense and/or "increased costs" (including reasonable attorneys' fees, court and
litigation costs, and fees of expert witnesses) that results or arises in any way from any of the
following: (a) the noncompliance by Subrecipient of any applicable local, state and/or federal
law, including, without limitation, any applicable federal and/or state labor laws (including,
without limitation, if applicable, the requirement to pay state or federal prevailing wages and hire
apprentices); (b) the implementation of Section 1781 of the Labor Code, as the same may be
amended from time to time, or any other similar law; and/or (c) failure by Subrecipient to
provide any required disclosure or identification as required by Labor Code Section 1781, as the
same may be amended from time to time, or any other similar law. The foregoing indemnity
shall survive termination or expiration of this Agreement. It is agreed by the parties that
Subrecipient shall bear all risks of payment or nonpayment of prevailing wages under federal law
and California law and/or the implementation of Labor Code Section 1781, as the same may be
amended from time to time, and/or any other similar law. "Increased costs," as used in this
Section, shall have the meaning ascribed to it in Labor Code Section 1781, as the same may be
amended from time to time.
B. Hold Harmless
Subrecipient shall indemnify, defend, and hold harmless Grantee and its officers,
officials, employees, representatives and agents (each, an "Indemnitee") from and against any
and all liability, expense or damage of any kind or nature, and for, from and against any suits,
claims or demands, including legal fees and expenses, on account of or arising out of this
Agreement or otherwise in connection with the Program or Services, except to the extent of such
loss as may be caused by the sole negligence or willful misconduct of an Indemnitee. Upon
receiving knowledge of any suit, claim or demand asserted by a third party that Grantee believes
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is covered by this indemnity, Grantee shall give Subrecipient written notice of the matter and an
opportunity to defend it, at Subrecipient's sole cost and expense, with legal counsel satisfactory
to Grantee.
C. Workers' Compensation
Subrecipient shall provide Workers' Compensation Insurance coverage for all of its
employees involved in the performance of this Agreement.
D. Insurance & Bonding
Subrecipient shall carry sufficient insurance coverage to protect contract assets from loss
due to theft, fraud and/or undue physical damage, and as a minimum shall purchase a blanket
fidelity bond covering all employees in an amount equal to the amount of the City Grant.
Subrecipient shall comply with the bonding and insurance requirements of 24 C.F.R.
§§ 84.31 and 84.48, Bonding and Insurance.
Subrecipient will not be relieved of any liability, claims, demands, or other obligations
assumed by its failure to procure or maintain insurance, or its failure to procure or maintain
insurance in sufficient amounts, durations, or types.
Subrecipient shall name Grantee and its officers, officials, employees, volunteers, agents,
and representatives as an additional insured under its general liability insurance and provide a
copy of its insurance certificate(s)to Grantee.
Failure on the part of Subrecipient to procure or maintain policies providing the required
coverages, conditions, and minimum limits will constitute a material breach of this Agreement,
upon which Grantee may immediately terminate this Agreement.
E. Licensing
Subrecipient agrees to comply with and obtain at its own expense, if necessary, all
applicable Federal, state, county, or municipal standards for licensing, certifications and
operation of facilities and programs, including the Program, and accreditation and licensing of
individuals, and any other standards or criteria as described in this Agreement to assure quality
of the Services.
In the event of an investigation or suspension regarding any Subrecipient license related
to the Services under this Agreement, Grantee may terminate this Agreement and withhold
further City Grant funds. In addition, monies already received under this Agreement may be
owed back to Grantee.
F. Grantee Recognition
Subrecipient shall ensure recognition of the role of Grantee 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, Subrecipient will include a reference to
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the support provided herein in all publications made possible with City Grant funds under this
Agreement.
G. Amendments
Grantee or Subrecipient 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 each party, and approved by Grantee's governing body. Such
amendments shall not invalidate this Agreement, nor relieve or release Grantee or Subrecipient
from its obligations under this Agreement.
Grantee may, in 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 Grantee and Subrecipient.
H. Suspension or Termination
In accordance with 24 C.F.R. § 85.43, Grantee may suspend or terminate this Agreement
if Subrecipient materially fails to comply with any terms of this Agreement, which include (but
are not limited to) the following:
1. Failure to comply with any of the rules, regulations, or provisions referred
to herein, or such statutes, regulations, executive orders, and HUD
guidelines,policies, or directives as may become applicable at any time;
2. Failure, for any reason, of Subrecipient to fulfill in a timely and proper
manner its obligations under this Agreement;
3. Ineffective or improper use of City Grant funds provided under this
Agreement; or
4. Submission by Subrecipient to Grantee reports that are incorrect or
incomplete in any material respect.
In accordance with 24 C.F.R. § 85.44, this Agreement may also be terminated for
convenience by either Grantee or Subrecipient, in whole or in part, by setting forth the reasons
for such termination, the effective date, and, in the case of partial termination, the portion to be
terminated. However, if in the case of a partial termination, Grantee determines that the
remaining portion of the City Grant funds will not accomplish the purpose for which the grant
was made, Grantee may terminate this Agreement in its entirety.
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VIII. ADMINISTRATIVE REQUIREMENTS
A. Financial Management
1. Accounting Standards
Subrecipient agrees to comply with 24 C.F.R. §§ 84.21 — 84.28 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
Subrecipient shall administer its program in conformance with OMB Circulars A-122,
"Cost Principles for Non-Profit Organizations," or A-21, "Cost Principles for Educational
Institutions," as applicable. These principles shall be applied for all costs incurred whether
charged on a direct or indirect basis.
[Note: For the above sections, if Subrecipient is a governmental or quasi-governmental agency,
the applicable section of 24 C.F.R. Part 85, "Uniform Administrative Requirements for Grants
and Cooperative Agreements to State and Local Governments, " and OMB Circular A-87 would
apply.]
B. Documentation and Record Keeping
l. Records to be Maintained
Subrecipient shall maintain all records required by the Federal regulations specified in 24
C.F.R. § 570.506, 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 one of
the National Objectives of the CDBG program;
C. Records required to determine the eligibility of activities;
d. Records required to document the acquisition, improvement,use or
disposition of real property acquired or improved with CDBG assistance;
e. Records documenting compliance with the fair housing and equal
opportunity components of the CDBG program;
f. Financial records as required by 24 C.F.R. § 570.502, and
24 C.F.R. §§ 84.21 — 84.28; and
g. Other records necessary to document compliance with Subpart K
of 24 C.F.R. Part 570.
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2. Retention
Subrecipient shall retain all financial records, supporting documents, statistical records,
and all other records pertinent to this Agreement for a period of four (4) years. The retention
period begins on the date of the submission of Grantee's annual performance and evaluation
report to HUD in which the Services under this Agreement are reported on for the final time.
Notwithstanding the above, if there is any litigation, claim, audit,negotiation, or other action that
involves any of the records cited and that has started before the expiration of the four-year
retention period, then such records must be retained until completion of the litigation, claim,
audit, negotiation, or other action and the resolution of all issues, or until the expiration of the
four-year period,whichever occurs later.
3. Client Data
Subrecipient 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 description of service provided. Such information
shall be made available to Grantee monitors or their designees for review upon request.
4. Disclosure
Subrecipient 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 Grantee's or Subrecipient's responsibilities with respect to the Services
provided under this Agreement, 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 of person
receiving service.
5. Close-outs
Subrecipient's obligation to Grantee 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
Grantee), and determining the custodianship of records. Notwithstanding the foregoing, the
terms of this Agreement shall remain in effect during any period that Subrecipient has control
over CDBG Funds, including program income.
Subrecipient will have thirty (30) days after the end of the period defined in Section II
(Time of Performance) to submit all final reimbursement request(s), progress reports, and a
comprehensive annual report.
6. Audits &Inspections
Subrecipient records with respect to any matters covered by this Agreement shall be
made available to Grantee, HUD, and the Comptroller General of the United States or any of
their authorized representatives, at any time during normal business hours, as often as deemed
necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any
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deficiencies noted in audit reports must be fully cleared by Subrecipient within thirty (30) days
after receipt by Subrecipient of the audit report. Failure of Subrecipient to comply with the
above audit requirements will constitute a violation of this Agreement and may result in the
withholding by Grantee of future payments of the City Grant. Subrecipient hereby agrees to
have an annual agency audit conducted in accordance with current Grantee policy concerning
Subrecipient audits and OMB Circular A-133.
C. Reporting and Payment Procedures
1. Program Income
Subrecipient shall report quarterly all program income (as defined at 24 C.F.R.
§ 570.500(a)) generated by activities carried out with CDBG Funds made available under this
Agreement. The use of program income by Subrecipient shall comply with the requirements set
forth at 24 C.F.R. § 570.504. By way of further limitations, Subrecipient may use such program
income during the term of this Agreement and shall reduce requests for additional City Grant
funds by the amount of any such program income balances on hand. All unexpended program
income shall be returned to Grantee at the end of the term of this Agreement. Any interest
earned on cash advances from the U.S. Treasury and from funds held in a revolving fund account
is not program income and shall be remitted promptly to Grantee.
2. Indirect Costs
If indirect costs are charged, Subrecipient will develop an indirect cost allocation plan for
determining the appropriate Subrecipient's share of administrative costs and shall submit such
plan to Grantee for approval, in a form specified by Grantee.
3. Payment Procedures
Grantee shall reimburse Subrecipient only for actual incurred costs upon presentation of
properly executed reimbursement forms as provided and approved by Grantee. Only those
Eligible Project Expenses directly related to this Agreement shall be reimbursed. The amount of
each request must be limited to the amount needed for payment of Eligible Project Expenses.
In the event that Grantee or HUD determines that any CDBG Funds were expended by
Subrecipient for unauthorized or ineligible purposes or the expenditures constitute disallowed
costs in any other way, Grantee or HUD may order repayment of the same. Subrecipient shall
remit the disallowed amount to Grantee within thirty (30) days of written notice of the
disallowance.
a. Subrecipient agrees that funds determined by Grantee to be surplus
upon completion of this Agreement will be subject to cancellation
by Grantee.
b. Subrecipient agrees that upon expiration of this Agreement,
Subrecipient shall transfer to Grantee any CDBG Funds on hand at
the time of the expiration and any accounts receivable attributable
to the use of CDBG Funds.
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C. Grantee shall be relieved of any obligation for payments if funds
allocated to Grantee cease to be available for any cause other than
misfeasance of Grantee itself.
d. Grantee reserves the right to withhold payments pending timely
delivery of program reports or documents as may be required
under this Agreement.
Payments by Grantee will be provided through a reimbursement/invoicing method only,
with payment issued by Grantee after actual costs have been incurred and paid by Subrecipient.
All costs shall be supported by properly executed payrolls, time records, invoices,
vouchers, or other official documentation, as evidence of the nature and propriety of the charges.
All accounting documents pertaining in whole or in part to this Agreement shall be clearly
identified and readily accessible, and upon reasonable notice, Grantee and HUD shall have the
right to audit the records of Subrecipient as they relate to this Agreement and the activities and
services described herein.
Payment reimbursement requests shall be submitted by Subrecipient at a minimum on a
quarterly basis. Failure to submit reimbursement requests in a timely manner may lead to
reallocation of City Grant funds.
Subrecipient shall also:
a. Maintain an effective system of internal fiscal control and
accountability for all CDBG Funds and property acquired or
improved with CDBG Funds, and make sure the same are used
solely for the Services.
b. Keep a continuing record of all disbursements by date, check
number, amount, vendor, description of items purchased, and line
item from which the money was expended, as reflected in
Subrecipient's accounting records.
C. Maintain payroll, financial, and expense reimbursement records for
a period of four (4) years after receipt of final payment under this
Agreement.
d. Permit inspection and audit of its records with respect to all
matters authorized by this Agreement by representatives of
Grantee or HUD at any time during normal business hours and as
often as necessary.
C. Inform Grantee concerning any City Grant funds allocated to
Subrecipient, that Subrecipient anticipates will not be expended
during the term of this Agreement, and permit the reassignment of
the same by Grantee to other subrecipients.
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f. Repay Grantee any funds in its possession at the time of the
termination or expiration of this Agreement that may be due to
Grantee or HUD.
g. Maintain complete records concerning the receipt and use of all
program income. Program income shall be reported on a monthly
basis on forms provided by Grantee.
4. Progress Reports
Subrecipient shall submit regular progress reports to Grantee in the form, content, and
frequency as required by Grantee. Progress reports must be submitted at a minimum on
quarterly basis. Reporting periods are defined in the following table:
Quarter Reportfing Period Due Date
1 July-September October 20
2 October-December January 20
3 January-March April 20
4 March-June July 20
Along with the quarterly progress reports, Subrecipient shall provide Grantee with
twenty-five percent (25%) sampling of self-certification forms and ten percent (10%) sampling
of income verification for clients served that quarter. Subrecipient shall be responsible for
retaining one hundred percent (100%) certification and/or income certification forms for a
minimum of four(4)years along with other Program records.
Additionally, an annual comprehensive report including inventory of all Services
provided or performed with CDBG Funds, and financial report shall be submitted at the end of
the program year. The annual report shall be submitted no later than August 1st.
D. Procurement
1. Compliance
Subrecipient shall comply with current Grantee 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
(including, unexpended program income, property, and equipment) shall revert to Grantee upon
termination or expiration of this Agreement.
2. OMB Standards
Unless specified otherwise within this Agreement, Subrecipient shall procure all
materials, property, or services in accordance with the requirements of 24 C.F.R. §§ 84.40 —
84.48.
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3. Travel
Subrecipient shall obtain written approval from Grantee for any travel outside the
metropolitan area with City Grant funds provided under this Agreement.
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 C.F.R. Part 84 and 24 C.F.R. §§ 570.502, 570.503, and
570.504, as applicable,which include but are not limited to the following:
1. Subrecipient shall transfer to Grantee any CDBG Funds on hand and any
accounts receivable attributable to the use of CDBG Funds under this
Agreement at the time of expiration, cancellation, or termination.
2. In all cases in which equipment acquired, in whole or in part, with CDBG
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
Subrecipient for Services under this Agreement shall be (a) transferred to
Grantee for the CDBG program or(b)retained after compensating Grantee
an amount equal to the current fair market value of the equipment less the
percentage of non-CDBG Funds used to acquire the equipment.
IX. REPRESENTATIONS AND WARRANTIES OF SUBRECIPIENT
Subrecipient makes the following representations and warranties as of the date of this
Agreement and agrees that such representations and warranties shall survive and continue
thereafter:
A. Authorization and Validation
The execution, delivery and performance by Subrecipient of this Agreement (i) are within
the powers of Subrecipient and upon its execution will constitute a legal, valid and binding
obligation of Subrecipient enforceable in accordance with its terms, and (ii) will not violate any
provisions of law, any order of any court or other agency of government, or any indenture,
agreement or any other instrument to which Subrecipient is a party or by which Subrecipient , or
any of its property, is bound, or be in conflict with, result in any breach of or constitute (with due
notice and/or lapse of time) a default under any such indenture, agreement or other instrument, or
result in the creation or imposition of any lien, charge or encumbrance of any nature whatsoever
upon any of its property or assets, except as contemplated by the provisions of this Agreement.
B. Correct Information
All reports, papers, data and information given to Grantee with respect to Subrecipient
and this Agreement, including the Program are accurate and correct in all material respects and
complete insofar as completeness may be necessary to give Grantee a true and accurate
knowledge of the subject matters thereof, and there has been no change in such information.
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C. Defaults
Subrecipient is not a party to any agreement or instrument that will interfere with its
performance under this Agreement, and is not in default in the performance, observance or
fulfillment of any of the obligations, covenants or conditions set forth in any agreement or
instrument to which it is a party.
D. Pending Litisation
There is not now pending or threatened against or affecting Subrecipient any claim,
investigation, action, suit or proceeding at law, or in equity, or before any court or administrative
agency which, if adversely determined, would impair or affect Subrecipient's ability to perform
the Services.
E. Compliance
Subrecipient has examined and is familiar with all conditions, restrictions, reservations,
and ordinances affecting the performance of the Services. The Services will in all material
respects conform to and comply with all of the requirements of said conditions, restrictions,
reservations, and ordinances and performance of the Services shall conform in all respects with
applicable ordinances and statutes, and shall be in accordance with all requirements of the
regulatory authorities having jurisdiction thereof.
X. 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.
XI. 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.
XII. WAIVER
Grantee's failure to act with respect to a breach by Subrecipient does not waive its right
to act with respect to subsequent or similar breaches. The failure of Grantee to exercise or
enforce any right or provision shall not constitute a waiver of such right or provision.
XIII. NONLIABILITY OF OFFICIALS AND EMPLOYEES
No member, official, employee, or contractor of Grantee shall be personally liable to
Subrecipient in the event of any default or breach by Grantee or for any amount which may
become due to Subrecipient or on any obligations under this Agreement. No member, official,
employee, or contractor of Subrecipient shall be personally liable to Grantee in the event of any
default or breach by Subrecipient or for any amount which may become due to Grantee or on any
obligations under this Agreement.
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XIV. APPLICABLE LAW; VENUE
The internal laws of the State of California shall govern the interpretation and
enforcement of this Agreement. All legal actions must be instituted and maintained in the
Superior Court of the County of Riverside, State of California, or in any other appropriate court
in that County.
XV. EXECUTION IN COUNTERPARTS
This Agreement may be executed in counterparts, each of which shall be deemed to be an
original, and such counterparts shall constitute one and the same instrument.
XVI. NO CONFLICT OF INTEREST
For the term of this Agreement, no member, officer, or employee of Grantee, during the
term of his or her service with Grantee, shall have any direct interest in this Agreement, or obtain
any present or anticipated material benefit arising therefrom. In addition, Subrecipient agrees to
file, or to cause its employees or subcontractors to file, a Statement of Economic Interest with
Grantee's Filing Officer if such filing is required under state law in connection with the
performance of the Services.
XVII. THIRD PARTY BENEFICIARIES
With the exception of the specific provisions set forth in this Agreement, there are no
intended third-party beneficiaries under this Agreement and no such other third parties shall have
any rights or obligations hereunder.
XVIII.ENTIRE AGREEMENT
This Agreement constitutes the entire agreement between Grantee and 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 Grantee and
Subrecipient with respect to this Agreement.
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II
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first
written above.
[Grantee] [Subrecipient]
By: By: "� ✓fycec
ROBER JOHNSON, ITY MANAGER J ET GREEN, BOARD PRESIDENT
Date: ��1� Date: /0 /jd J/
By
ROSE MAYES, EXECQTIVE DIRECTOR
Attest:
CITY CLERK
Countersigned:
FINANCE OFFICER
APP D AS TO FORM:
Fed I.D. #
CI RNEY
26711031858-0001
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-
EXHIBIT A
SUMMARY OF LEGAL REQUIREMENTS
In addition to the requirements set forth in other provisions of the Agreement,
Subrecipient shall comply, and shall cause all Subrecipient's personnel to comply, with the
following regulations and requirements insofar as they are applicable to the performance of the
Agreement.'
1. Equal Opportunity and Nondiscrimination.
a. Title VI of the Civil Rights Act of 1964, as amended, including Public
Law 88-352 implemented in 24 C.F.R. Part 1. This law provides in part that no person shall,
on the grounds of race, color, or national origin be excluded from participation in, be denied the
benefits of, or be subjected to discrimination under any program or activity receiving federal
financial assistance. In regard to the sale or lease of property, Subrecipient shall cause or require
a covenant running with the land to be inserted in the deed and leases prohibiting discrimination
under this Title, and providing that Grantee and the United States are beneficiaries of and entitled
to enforce such covenants. Subrecipient shall enforce such covenant and shall not itself so
discriminate.
b. Fair Housing Act, Title VIII of the Civil Rights Act of 1968, as
amended, including Public Law 90-234. The Fair Housing Act provides in part that there shall
be no discrimination in housing practices on the basis of race, color, religion, sex, and national
origin. The Fair Housing Act was amended in 1988 to provide protections from discrimination
in any aspect of the sale or rental of housing for families with children and persons with
disabilities. The Fair Housing Act also establishes requirements for the design and construction
of new rental or for-sale multi-family housing to ensure a minimum level of accessibility for
persons with disabilities.
C. Section 109 of Title I of the Housing and Community Development
Act of 1974, as amended, including 42 U.S.C. 5301 et. seq., 42 U.S.C. 6101 et. seq., and 29
U.S.C. 794. This law provides in part that no person on the grounds of race, color, national
origin, sex, or religion shall be excluded from participation in, be denied the benefits of, or
otherwise be subject to discrimination under any activity funded in whole or part with funds
under this Title.
d. Section 104(b) of Title I of the Housing and Community Development
Act of 1974, as amended, including 42 U.S.C. 5301 et. seq. This law provides in part that any
1 This exhibit is a list and summary of some of the applicable legal requirements and is not a
complete list of all Subrecipient requirements. The description set forth next to a statute or
regulation is a summary of certain provisions in the statute or regulation and is in no way
intended to be a complete description or summary of the statute or regulation. In the event of
any conflict between this summary and the requirements imposed by applicable laws,
regulations, and requirements, the applicable laws, regulations, and requirements shall apply.
EXHIBIT "A"
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grant under Section 106 shall be made only if the grantee certifies to the satisfaction of the
Secretary of HUD that the grantee will, among other things, affirmatively further fair housing.
e. Executive Order 11246, as amended. This order includes a requirement
that grantees and subrecipients and their contractors and subcontractors not discriminate against
any employee or applicant for employment because of race, color, religion, sex, or national
origin.
f. Executive Order 11063, as amended, including 24 C.F.R. Part 107.
This order and its implementing regulations include requirements that all actions necessary be
taken to prevent discrimination because of race, color, religion, sex, or national origin in the use,
occupancy, sale, leasing, rental, or other disposition of property assisted with Federal loans,
advances, grants, or contributions.
g. Section 504 of the Rehabilitation Act of 1973, as amended. This Act
specifies in part that no otherwise qualified individual shall solely by reason of his or her
disability or handicap be excluded from participation (including employment), denied program
benefits, or subjected to discrimination under any program or activity receiving Federal
assistance. Subrecipient must ensure that its programs are accessible to and usable by persons
with disabilities.
h. The Americans with Disabilities Act(ADA) of 1990, as amended. This
Act prohibits discrimination on the basis of disability in employment by state and local
governments and in places of public accommodation and commercial facilities. The ADA also
requires that facilities that are newly constructed or altered, by, on behalf of, or for use of a
public entity, be designed and constructed in a manner that makes the facility readily accessible
to and usable by persons with disabilities. The Act defines the range of conditions that qualify as
disabilities and the reasonable accommodations that must be made to assure equality of
opportunity, full participation, independent living, and economic self-sufficiency for persons
with disabilities.
i. The Age Discrimination Act of 1975, as amended. This law provides in
part that no person shall be excluded from participation in, be denied program benefits, or
subjected to discrimination on the basis of age under any program or activity receiving federal
assistance.
j. EEO/AA Statement. Subrecipient shall, in all solicitations or
advertisements for employees placed by or on behalf of Subrecipient, state that it is an Equal
Opportunity or Affirmative Action employer.
k. Minority/Women Business Enterprise. Subrecipient will use its best
efforts to afford small businesses and minority and women-owned business enterprises the
maximum practicable opportunity to participate in the performance of the Agreement. As used
in the Agreement, the term "small business" means a business that meets the criteria set forth in
Section 3(a) of the Small Business Act, as amended (15 U.S.C. 632), and "minority and women-
owned 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
EXHIBIT "A"
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group members" are Afro-Americans, Spanish-speaking, Spanish-surnamed or Spanish-heritage
Americans, Asian-Americans, and American Indians. Subrecipient may rely on written
representations by businesses regarding their status as minority and female business enterprises
in lieu of an independent investigation.
2. Environmental.
a. Air and Water. Subrecipient shall comply with the following regulations
insofar as they apply to the performance of the 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; and the U.S. Environmental Protection regulations pursuant to 40 C.F.R. Part
50, as amended.
b. Flood Disaster Protection Act of 1973. Subrecipient 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.
C. Lead-Based Paint. Subrecipient shall comply with the Lead-Based Paint
Regulations referenced in 24 C.F.R. § 570.608, including 24 C.F.R. Part 35, et. al.
d. Historic Preservation. Subrecipient shall 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 C.F.R. Part 800, Advisory Council
on Historic Preservation Procedures for Protection of Historic Properties and related laws and
Executive Orders, insofar as they apply to the performance of the Agreement. In general, this
requires concurrence from the State Historic Preservation Officer for all rehabilitation and
demolition of historic properties that are fifty years old or older or that are included on a federal,
state, or local historic property list.
e. Limitation on Activities Pending Clearance. In accordance with 24
C.F.R. § 58.22 entitled "Limitations on activities pending clearance, "neither a recipient nor any
participant in the development process, including public or private nonprofit or for-profit entities,
or any of their contractors, may commit HUD assistance under a program listed in 24 C.F.R.
§ 58.1(b) on an activity or project until HUD or the state has approved the recipient's Request for
Release of Funds (RROF) and the related certifications have been approved. Neither a recipient
nor any participant in the development process may commit non-HUD funds or undertake an
activity or project that would have an adverse environmental impact or limit the choice of
reasonable alternatives. Upon completion of environmental review or receipt of environmental
clearance, Grantee shall notify Subrecipient. HUD funds shall not be utilized before this
requirement is satisfied. The environmental review or violation of the provisions may result in
approval, modification of cancellation of the City Grant. If a project or activity is exempt under
24 C.F.R. § 58.34, or is categorically excluded (except in extraordinary circumstances)under 24
C.F.R. § 58.35(b), no RROF is required and the recipient may undertake the activity immediately
after the Grantee has documented its determination that each activity or project is exempt and
EXHIBIT "A"
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meets the conditions specified for such exemption under this section by issuing a Notice to
Proceed.
3. Uniform Administrative Requirements. The uniform administrative
requirements described in 24 C.F.R. § 570.502.
4. Other Program Requirements. Subrecipient shall carry out each activity under
the Agreement in accordance with all applicable federal laws and regulations described in
Subpart K of 24 C.F.R. § 570 except for Grantee's environmental responsibilities under 24
C.F.R. § 570.604 and Grantee's responsibility for initiating the review process under the
provisions of 24 C.F.R. Part 52.
5. Reversion of Assets. Upon the expiration of the Funding Period or sooner
termination of the Agreement, Subrecipient shall transfer to Grantee (a) any and all CDBG
Funds, (b) any accounts receivable attributable to the use of CDBG Funds. In all cases in which
equipment acquired, in whole or in part, with funds under the Agreement is sold, the proceeds
shall be program income (prorated to reflect the extent to that funds received under the
Agreement were used to acquire the equipment). Equipment not needed by Subrecipient for
activities under the Agreement shall at the election of Grantee either be (a) transferred to Grantee
for the CDBG program, or (b) retained by Subrecipient after compensating Grantee an amount
equal to the current fair market value of the equipment less the percentage of non-CDBG funds
used to acquire the equipment.
6. Relocation. Grantee shall not be responsible for relocating any occupants from
any property. If required, Subrecipient shall have the sole and exclusive responsibility for
providing relocation assistance and paying all relocation costs required to comply with all
applicable federal and state laws, rules, and regulations, including the Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970, 42 U.S.C. § 4601 et seq., as
amended, and implementing regulations, and HUD Handbook 1378. Subrecipient shall
indemnify, defend, and hold Grantee harmless from and against any claims, liabilities, damages,
or losses made against it by tenants or occupants of any property, including without limitation
claims for relocation assistance, inverse condemnation, and claims otherwise arising from any
act or omission of Subrecipient pursuant to the provision of relocation assistance.
7. Allowable Costs and Audits. Subrecipient shall comply with and administer the
Program in accordance with OMB Circular No. A-122 "Cost Principles for Non Profit
Organizations" or OMB Circular No. A-21 "Cost Principles for Educational Institutions", as
applicable. If Subrecipient is a governmental or quasi-governmental agency, the applicable
sections of 24 C.F.R. Part 85, "Uniform Administrative Requirements for Grants and
Cooperative Agreements to State and Local Governments," and OMB Circular A-87 shall apply.
Subrecipient shall have an annual audit conducted in accordance with OMB Circular No. A-133,
"Audits of States, Local Governments, and Non-Profit Organizations."
8. Records and Reports. Subrecipient shall provide to Grantee and shall cause
each of its contractors, subcontractors, and subrecipients to provide to Grantee all records and
reports relating to the Program that may be reasonably requested by Grantee in order to enable it
EXHIBIT "A"
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to perform its record keeping and reporting obligations pursuant to the CDBG Requirements,
including but not limited to those described in the Agreement and 24 C.F.R. § 570.506.
9. Religious Organizations. If Subrecipient is a religious organization as defined
by the CDBG Requirements, Subrecipient shall comply with all conditions prescribed by HUD
for the use of CDBG Funds by religious organizations, including the First Amendment of the
United States Constitution regarding church/state principles and the applicable constitutional
prohibitions set forth in 24 C.F.R. § 570.2000).
10. Conflict of Interest. Subrecipient will comply with 24 C.F.R. §§ 84.42, 85.36
and 570.611 regarding the avoidance of conflict of interest, which provisions include (but are not
limited to) the following:
i. Subrecipient shall maintain a written code or standards of conduct that
shall govern the performance of its officers, employees or agents engaged in the award
and administration of contracts supported by Federal funds.
ii. No employee, officer or agent of the Subrecipient shall participate in the
selection, or in the award, or administration of, a contract supported by Federal funds if a
conflict of interest,real or apparent,would be involved.
iii. No covered persons who exercise or have exercised any functions or
responsibilities with respect to CDBG-assisted activities, or who are in a position to
participate in a decision-making process or gain inside information with regard to such
activities, may obtain a financial interest in any contract, or have a financial interest in
any contract, subcontract, or agreement with respect to the CDBG-assisted activity, or
with respect to the proceeds from the CDBG-assisted activity, either for themselves or
those with whom they have business or immediate family ties, during their tenure or for a
period of one (1) year thereafter. For purposes of this paragraph, a "covered person"
includes any person who is an employee, agent, consultant, officer, or elected or
appointed official of the Grantee, the Subrecipient, or any designated public agency.
11. Political Activity (24 C.F.R. § 570.207(a)(3)). Subrecipient is prohibited from
using CDBG Funds to finance the use of facilities or equipment for political purposes or to
engage in other partisan political activities, such as sponsoring candidate forums, distributing
brochures,voter transportation, or voter registration.
12. Anti-Lobbying Certification. By its execution of the Agreement, Subrecipient
hereby certifies that:
i. 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.
EXHIBIT"A"
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ii. 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.
iii. It will require that the language of this certification be included in the
award documents for all subawards at all tiers (including subcontracts, subgrants, and
contracts under grants, loans, and cooperative agreements) and that all subrecipients shall
certify and disclose accordingly.
This certification is a material representation of fact upon which reliance was placed
when this transaction was made or entered into. This certification is a prerequisite for making or
entering into this transaction imposed by section 1352, title 31, U.S.C. 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. At the request of Grantee, Subrecipient shall execute
a separate document that contains the certifications set forth above.
13. Drug-Free Workplace Requirements. Subrecipient shall comply with and be
subject to the requirements of the federal drug-free workplace requirements, which include the
following actions be taken:
i. Publishing a statement notifying employees that the unlawful
manufacture, distribution, dispensing, possession, or use of a controlled substance is
prohibited in the grantee's workplace and specifying the actions that will be taken against
employees for violation of such prohibition.
ii. Establishing an ongoing drug-free awareness program to inform
employees about: (a) the dangers of drug abuse in the work place; (b) the grantee's
policy of maintaining a drug-free workplace; (c) any available drug counseling,
rehabilitation, and employee assistance programs; and (d) the penalties that may be
imposed upon employees for drug abuse violations occurring in the workplace.
iii. Making it a requirement that each employee to be engaged in the
performance of the grant be given a copy of the statement required by paragraph (i).
iv. Notifying the employee in the statement required by paragraph (i) that, as
a condition of employment under the grant, the employee will: (a) abide by the terms of
the statement; and (b) notify the employer in writing of his or her conviction for a
violation of a criminal drug statute occurring in the workplace no later than five (5)
calendar days after such conviction.
V. Notifying the agency in writing, within ten (10) calendar days after
receiving notice under sub-paragraph (iv)(b) from an employee or otherwise receiving
actual notice of such conviction. Employers of convicted employees must provide notice,
including position title, to every grant officer or other designee on whose grant activity
the convicted employee was working, unless the Federal agency has designated a central
EXHIBIT "A"
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point for the receipt of such notices. Notice shall include the identification number(s) of
each affected grant.
vi. Taking one of the following actions, within thirty (30) calendar days of
receiving notice under subparagraph (iv)(b), with respect to any employee who is so
convicted: (a) taking appropriate personnel action against such an employee, up to and
including termination, consistent with the requirements of the Rehabilitation Act of 1973,
as amended; or (b) requiring such employee to participate satisfactorily in a drug abuse
assistance or rehabilitation program approved for such purposes by a Federal, State or
local health, law enforcement, or other appropriate agency.
vii. Making a good faith effort to continue to maintain a drug-free workplace
through implementation of paragraphs (i), (ii), (iii), (iv), (v), and(vi).
14. Procurement. Subrecipient will comply with the procurement standards under
24 C.F.R. § 85.36 for governmental subrecipiems and 24 C.F.R. §§ 84.40-84.48 for subrecipients
that are non-profit organizations. Subrecipient shall comply with all existing and future Grantee
policies concerning the purchase of equipment.
15. Labor Provisions.
a. Section 3 of the Housing and Community Development Act of 1968.
Subrecipient shall comply with and cause its contractors and subcontractors to comply with the
requirements of Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C.
§ 1701u), the HUD regulations issued pursuant thereto at 24 C.F.R. Part 135, and any applicable
rules and orders of HUD issued thereunder. The Section 3 clause, set forth in 24 C.F.R § 135.38
provides:
i. The work to be performed under this contract is subject to the
requirements of Section 3 of the Housing and Urban Development Act of 1968, as
amended, 12 U.S.C. § 170lu ("Section 3"). The purpose of Section 3 is to ensure that
employment and other economic opportunities generated by HUD assistance or HUD-
assisted projects covered by Section 3, shall, to the greatest extent feasible, be directed to
low- and very low-income persons, particularly persons who are recipients of HUD
assistance for housing.
ii. The parties to this contract agree to comply with HUD's regulations in 24
C.F.R. Part 135, which implement Section 3. As evidenced by their execution of this
contract, the parties to this contract certify that they are under no contractual or other
impediment that would prevent them from complying with the Part 135 regulations.
iii. The contractor agrees to send to each labor organization or representative
of workers with which the contractor has a collective bargaining agreement or other
understanding if any, a notice advising the labor organization or workers' representative
of the contractor's commitments under this Section 3 clause, and will post copies of the
notice in conspicuous places at the work site where both employees and applicants for
training and employment positions can see the notice. The notice shall describe the
Section 3 preference, shall set forth minimum number and job titles subject to hire,
EXHIBIT "A"
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availability of apprenticeship and training positions, the qualifications for each; and the
name and location of the person(s) taking applications for each of the positions; and the
anticipated date the work shall begin.
iv. The contractor agrees to include this Section 3 clause in every subcontract
subject to compliance with regulations in 24 C.F.R. Part 135, and agrees to take
appropriate action, as provided in an applicable provision of the subcontract or in this
Section 3 clause, upon a finding that the subcontractor is in violation of the regulations in
24 C.F.R. Part 135. The contractor will not subcontract with any subcontractor where the
contractor has notice or knowledge that the subcontractor has been found in violation of
the regulations in 24 C.F.R. Part 135.
V. The contractor will certify that any vacant employment positions,
including training positions, that are filled (1) after the contractor is selected but before
the contract is executed, and (2) with persons other than those to whom the regulations of
24 C.F.R. Part 135 require employment opportunities to be directed, were not filled to
circumvent the contractor's obligations under 24 C.F.R. Part 135.
vi. Noncompliance with HUD's regulations in 24 C.F.R Part 135 may result
in sanctions, termination of this contract for default, and debarment or suspension from
future HUD assisted contracts.
Subrecipient shall abide by the Section 3 clause set forth above and will also cause this
Section 3 clause to be inserted in all contracts relating to the Program.
b. Labor Standards. Subrecipient shall comply with the provisions of 24
C.F.R. § 570.603 and related requirements. Subrecipient shall include in all applicable
construction contracts the provisions of federal law imposing labor standards on federally
assisted contracts. Subrecipient shall comply with the requirements of the Secretary of Labor in
accordance with the Davis-Bacon Act as amended (40 U.S.C. 3141 through 3148), the
provisions of Contract Work Hours and Safety Standards Act (40 U.S.C. 327 et seq. and
implementing regulations), the Copeland Anti-Kick Back Act (40 U.S.C. 276c and 18 U.S.C.
874 et seq.), the implementing regulations of the U.S. Department of Labor including 29 C.F.R.
Parts 1, 3, 5, 6 and 7, and all other applicable Federal, state and local laws and regulations
pertaining to labor standards insofar as those acts apply to the performance of the Agreement.
Subrecipient shall maintain documentation that demonstrates compliance with these provisions
and such documentation shall be made available to Grantee and HUD for review upon request.
Subrecipient shall cause or require to be inserted in full, in all such contracts subject to such
regulations,provisions meeting the requirements of this paragraph.
C. HUD Form 4010. Subrecipient shall comply and cause Subrecipient
Personnel to comply with the provisions of HUD Form 4010 attached hereto. HUD Form 4010
must be included in the bid packet and construction contract and subcontracts for the Program.
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Federal Labor Standards Provisions U.S.Department of Housing
and Urban Development
Office of Labor Relations
Applicability (1) The work to be performed by the classification
The Project or Program to which the construction work requested is not performed by a classification in the wage
covered by this contract pertains is being assisted by the determination; and
United States of America and the following Federal Labor (2) The classification is utilized in the area by the
Standards Provisions are included in this Contract construction industry; and
pursuant to the provisions applicable to such Federal (3) The proposed wage rate, including any bona fide
assistance. fringe benefits, bears a reasonable relationship to the
A. 1. H) Minimum Wages. All laborers and mechanics wage rates contained in the wage determination.
employed or working upon the site of the work, will he paid (b) If the contractor and the laborers and mechanics to be
unconditionally and not less often than once a week, and employed in the classification (It known), or their
without subsequent deduction of rebate on any account representatives. and HUD or its designee agree on the
(except such payroll deductions as are permitted by classification and wage rate (including the amount
regulations issued by the Secretary of Labor under the designated for fringe benefits where appropriate), a report
Copeland Act (29 CFR Part 3), the full amount of wages of the action taken shall be sent by HUD or its designee to
and bona fide fringe benefits for cash equivalents thereof) the Administrator of the Wage and Hour Division,
due at time of payment computed at rates not less than Employment Standards Administration, U.S. Department of
those contained in the wage determination of the Labor, Washington, D.C. 20210. The Administrator, or an
Secretary of Labor which is attached hereto and made a authorized representative, will approve. modify. or
part hereof, regardless of any contractual relationship disapprove every additional classification action within 30
which may be alleged to exist between the contractor and days or receipt and so advise HUD or its designee or will
such laborers and mechanics. Contributions made or notify HUD or its designee within the 30-day period that
costs reasonably an0cipated for bona fide fringe benefits additional time is necessary. (Approved by the Office of
under Section i(bl(2) of the Davis-Bacon Act on behalf of Management and Budget under OMB control number 1215-
laborers or mechanics are considered wages paid to such 0140.)
laborers or mechanics. subject to the provisions of 29 CFR 5 5(agl)(iv); also, regular contributions made or costs (c) In the event the contractor, the laborers or mechanics
.
incurred for more than a weekly period (but not less often to be employed in the classification or their
than quarterly) under plans, funds, or programs, which representatives, and HUD or its designee do not agree on
cover the particular weekly period, are deemed to be the proposed classification and wage rate (including the
constructively made or incurred during such weekly part.ad amount designated for fringe benefits, where appropriate).
HUD or its designee shall rotor the questions, including
Such laborers and mechanics shall be paid the appropriate the views of all interested parties and the recommendation
wage rate and fringe benefits on the wage determination of HUD or its designee, to the Administrator for
for the classification of work actually performed, without determination. The Administrator, or an authorized
regard to skill. except as provided in 29 CFR 5.5(a)(4). representative,will issue a determination within 30 days of
Laborers or mechanics performing work in more than one receipt and so advise HUD or its designee or will notify
classification may be compensated at the rate specified for HUD or its designee within the 30-day period that
each classification for the time actually worked therein: additional time is necessary. (Approved by the Office of
Provided, That the employer's payroll records accurately Management and Budget under OMB Control Number
set forth the time spent in each classification in which 1215-0140.)
work is performed. The wage determination (including any
additional classification and wage rates conformed under (tl) The wage rate (including fringe benefits where
29 CFR 5.5(a)(1}(ii) and the Davis-Bacon poster (WH- appropriate) determined pursuant to subparagraphs
1321) shall be posted at all times by the contractor and its (1)f,ii)(b) or (c) of this paragraph, shall be paid to all
subcontractors at the site of the work in a prominent and workers performing work in the classification under this
accessible, place where it can be easily seen by the contract from the first day on which work is performed in
workers the classification.
(it) (a) .Any class of laborers or mechanics which is not hii) Whenever the minimum wage rate prescribed in the
listed in the wage determination and which is to be contract for a class of laborers or mechanics includes a
employed under the contract shall be classified in fringe benefit which is not expressed as an hourly rate_the
conformance with the wage determination. HUD shall contractor shall either pay the benefit as stated in the
approve an additional classification and wage rate and wage determination or shall pay another bona fide fringe
fringe benefits therefor only when the following criteria benefit or an hourly cash equivalent thereof.
have been met (iv) If the contractor does not make payments to a trustee
or other third person, the contractor may consider as part
form HUD-4010(062009)
Previous editions are obsolete Page 1 of 5 ref.Hanolmok 1344.1
EXHIBIT"A"
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of the wages of any laborer or mechanic the amount of any communicated in writing to the laborers or mechanics
costs reasonably anticipated in providing bona tide fringe affected, and records which show the costs anticipated or
benefits under a plan or program, Provided. That the the actual cost incurred in providing such benefits.
Secretary of Labor has found, upon the written request of Contractors employing apprentices or trainees under
the contractor, that the applicable standards of the Davis- approved programs shall maintain written evidence of the
Bacon Act have been met. The Secretary of Labor may registration of apprenticeship programs and certification of
require the contractor to set aside in a separate account trainee programs, the registration of the apprentices and
assets for the meeting of obligations under the plan or trainees, and the ratios and wage rates prescribed in the
program- (.Approved by the Office of Management and applicable programs. (Approved by the Office of
Budget under OMB Control Number 1215-0140.) Management and Budget under OMB Control Numbers
2. Withholding. HUD or Its designee shall upon its own 1215-0140 and 1215-0017.)
action or upon written request of an authorized (it) (a) The contractor shall submit weekly for each week
representative of the Department of Labor withhold or in which any contract work is performed a copy of all
cause to be withheld from the contractor under this payrolls to HUD or its designee if the agency is a party to
contract or any other Federal contract with the same prime the contract, but if the agency is not such a party, the
contractor, or any other Federally-assisted contract contractor will submit the payrolls to the applicant
subject to Davis-Bacon prevailing wage requirements, sponsor. or owner, as the case may be, for transmission to
which is held by the same prime contractor so much of the HUD or its designee. The payrolls submitted shall set out
accrued payments or advances as may be considered accurately and completely all of the information required
necessary to pay laborers and mechanics, including to be maintained under 29 CFR 5.5(a)(3)(r)except that full
apprentices, trainees and helpers, employed by the social security numbers and home addresses shall not be
contractor or any subcontractor the full amount of wages included on weekly transmittals. Instead the payrolls shall
required by the contract In the event of failure to pay any only need to include an individually identifying number for
laborer or mechanic, including any apprentice, trainee or each employee (e g.. the last four digits of the employee's
helper, employed or working on the site of the work. all or social security number). The required weekly payroll
part of the wages required by the contract. HUD or its information may be submitted in any form desired.
designee may, after written notice to the contractor Optional Form WH-347 is available for this purpose from
sponsor, applicant, or owner, take such action as may be the Wage and Hour Division Web site at
necessary to cause the suspension of any further fifty:/7"%vh.dor gov/esa(•.vhd/formshvh347instr-htm or its
payment, advance, or guarantee of funds until such successor site. The prime contractor is responsible for
violations have ceased. HUD or its designee may, after the submission of copies of payrolls by all subcontractors.
written notice to the contractor, disburse such amounts Contractors and subcontractors shall maintain the full
withheld for and on account of the contractor or social security number and current address of each
subcontractor to the respective employees to whom they covered worker, and shall provide them upon request to
are due. The Comptroller General shall make such HUD or its designee if the agency is a party to the
disbursements in the case of direct Davis-Bacon Act contract, but if the agency is not such a party, the
contracts contractor will submit the payrolls to the applicant
3. (1) Payrolls and basic records. Payrolls and basic sponsor,or owner, as the case may be,for transmission to
records relating thereto shall be maintained by the HUD or its designee, the contractor,or the Wage and Hour
contractor during the course of the work preserved for a Division of the Department of Labor for purposes of an
period of three years thereafter for all laborers and investigation or audit of compliance with prevailing wage
mechanics working at the site of the work. Such records requirements. It is not a violation of this subparagraph for
shall contain the name, address, and social security a prime contractor to require a subcontractor to provide
number of each such worker, his or her correct addresses and social security numbers to the prime
classification, hourly rates of wages paid (including rates contractor for its own records, without weekly submission
of contributions or costs anticipated for bona fide fringe to HUD or its designee_ (Approved by the Office of
benefits or cash equivalents thereof of the types described Management and Budget under OMB Control Number
in Section lfb)(2)(8) of the Davis-bacon Act), daily and 1215-0149.)
weekly number of hours worked, deductions made and (b) Each payroll submitted shall be accompanied by a
actual wages paid. Whenever the Secretary of Labor has "Statement of Compliance,' signed by the contractor or
found under 29 CFR 5.5 (a)(1)(w) that the wages of any subcontractor or his or her agent who pays or supervises
laborer or mechanic include the amount of any costs the payment of the persons employed under the contract
reasonably anticipated in providing benefits under a plan and shall certify the following:
or program described in Section I(b)(2)(e) of the Davis- (1) That the payroll for the payroll period contains the
Bacon Act, the contractor shall maintain records which information required to be provided under 29 CFR 5.5
show that the commitment to provide such benefits is (a)(3)(11), the appropriate information is being maintained
enforceable, that the plan or program is financially under 29 CFR 5.50)(3)(i), and that such information is
responsible, and that the plan or program has been correct and complete:
Previous editions am obsolete form HUD-4010( 2009)
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(2) That each laborer or mechanic (including each helper, is not registered or otherwise employed as stated above,
apprentice, and trainee) employed on the contract during shall be paid not less than the applicable wage rate on the
the payroll period has been paid the full weekly wages wage determination for the classification of work actually
earned, without rebate, either directly or indirectly, and performed. In addition, any apprentice performing work on
that no deductions have been made either directly or the job site in excess of the ratio permitted under the
Indirectly from the full wages earned, other than registered program shall be paid not less than the
permissible deductions as set forth in 29 CFR Part 3; applicable wage rate on the wage determination for the
(3) That each laborer or mechanic has been paid not less work actually performed 41here a contractor is performing
than the applicable wage rates and fringe benefits or cash construction on a project in a locality other than that in
equivalents for the classification of work performed, as which its program is registered, the ratios and wage rates
specified in the applicable wage determination (expressed in percentages of the journeyman's hourly
incorporated into the contract rate) specified in the contractor's or subcontractor's
registered program shall be observed. Every apprentice
certification
The weekly submission rs a properly executed must lie paid at not less than the rate specified in the
certification set forth on the reverse side u Optional Form registered program for the apprentice's level of progress,
`StatemH-347 shall satisfy the requirement for submission gr the expressed as a percentage of the journeymen hourly rate
"Statement of Compliance" required by subparagraph specified in the applicable wage determination.
A.3.(ii)(bj. Apprentices shall be paid fringe benefits in accordance
id) The falsification of any of the above certifications may with the provisions of the apprenticeship program. If the
subject the contractor or subcontractor to civil or criminal apprenticeship program does not specify fringe benefits,
prosecution under Section 1001 of Title 18 and Section apprentices must be paid the full amount of fringe benefits
231 of Title 31 of the United States Code. listed on the wage determination for the applicable
flit) The contractor or subcontractor shall make the classification. If the Administrator determines that a
records required under subparagraph A.3.(i) available for different practice prevails for the applicable apprentice
inspection, copying, or transcription by authorized classification, fringes shall be paid in accordance with that
representatives of HUD or its designee or the Department determination. In the event the Office of Apprenticeship
of Labor, and shall permit such representatives to Training. Employer and Labor Services, or a State
interview employees during working hours on the job. If Apprenticeship Agency recognized by the Office,
the contractor or subcontractor tails to submit the required withdraws approval of an apprenticeship program, the
records or to make them available, HUD or its designee contractor will no longer he permitted to utilize
may, after written notice to the contractor, sponsor, apprentices at less than the applicable predetermined rate
applicant or owner, take such action as may be necessary for the work performed until an acceptable program is
to cause the suspension of any further payment, advance, approved.
or guarantee of funds. Furthermore, failure to submit the (if) Trainees. Except as provided in 29 CFR 5,16,
required records upon request or to make such records trainees will not be permitted to work at less than the
available may be grounds for debarment action pursuant to predetermined rate for the work performed unless they are -
29 CFR 5.12- employed pursuant ',to and individually registered in a
4. Apprentices and Trainees. program which has received prior approval, evidenced by
if) Apprentices. Apprentices will be permitted to work at formal certification by the U.S. Department of Labor,
less than the predetermined rate for the work they Employment and Training Administration. The ratio of
performed when they are employed pursuant to and trainees to journeymen on the job site shall not be greater
individually registered in a bona fide apprenticeship than permitted under the plan approved by the
program registered with the U.S. Department of Labor, Employment and Training Administration. Every trainee
Employment and Training Administration, Office of must be paid at not less than the rate specified in the
Apprenticeship Training, Employer and Labor Services, or approved program for the trainee's level of progress,
with a State Apprenticeship Agency recognized by the expressed as a percentage of the journeyman hourly rate
Office or if a person is employed in his or her first 90 specified in the applicable wage determination_ Trainees
days of probationary employment as an apprentice in such shall be paid fringe benefits in accordance with the
an apprenticeship program, who is not individually provisions of the trainee program. If the trainee program
registered in the program, but who has been certified by does not mention fringe benefits, trainees shall be paid
the Office of Apprenticeship Training, Employer and Labor the full amount of fringe benefits listed on the wage
Services or a State Apprenticeship Agency (where determination unless the Administrator of the Wage and
appropriate)to be eligible for probationary employment as Hour Division determines that there is an apprenticeship
an apprentice. The allowable ratio of apprentices to program associated with the corresponding journeyman
journeymen on the job site in any craft classification shall wage rate on the wage determination which provides for
not be greater than the ratio permitted to the contractor as less than full fringe benefits for apprentices. Any
to the entire work force under the registered program. Any employee listed on the payroll at a trainee rate who is not
worker listed on a payroll at an apprentice wage rate, who registered and participating in a training plan approved by
Previous amours are obsolete form HUDA010(062009)
Page 3 of 5 ref Handbmi,1344:1
EXHIBIT"A"
2671/031858-0001
76247662aIbrz9714 PAGE 11 of 13