HomeMy WebLinkAbout129491 FORT COLLINS HOUSING CORPORATION - CONTRACT - AGREEMENT MISC - 9957616RECIPIENT CONTRACT FOR
TITLE XII OF THE DIVISION A OF THE
AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009
THIS AGREEMENT is entered into by and between THE CITY OF FORT COLLINS,
COLORADO, a municipal corporation (hereinafter referred to as "the City') and the FT.
COLLINS HOUSING CORPORATION, INC., a Colorado nonprofit corporation (hereinafter
referred to as "the Subrecipient"), by which the funding recipient agrees to carry out specific
activities under the American Recovery and Reinvestment Act of 2009 (CDBGR) and establishing
certain other terms and conditions of operation.
WITNESSET H:
VA-IEREAS, the City has applied for and received funds from the United States
Government under Title XII of the Division A of the American Recovery and reinvestment Act of
2009; and
WHEREAS, the City wishes to engage the Subrecipient to assist the City in utilizing such
funds.
NOW, TEEREFORE, in consideration of the mutual promises of the parties, it is agreed as
follows:
I. Scope of Services/Performance Monitoring.
A. The Scope of Services to be rendered by the Subrecipient is attached as Exhibit A
hereto and made a part of this Contract. Subrecipient agrees to subloan the funds to
the Village on Stanford, LLLP, a Colorado limited liability limited partnership (the
"Owner"), and require that the Owner perform the work described in Exhibit A,
Scope of Services, in compliance with all provisions of this Contract. Subrecipient
warrants and represents that it has the requisite authority and capacity to perform all
terms and conditions on Subrecipient's part to be performed hereunder.
B. The City will monitor the performance of the Owner against goals and performance
standards required herein. Substandard performance as determined by the City will
constitute non-compliance with this Contract. If action to correct such substandard
performance is not taken by the Owner within a reasonable period of time after
being notified by the City, contract suspension or termination procedures will be
initiated.
II. Term of Contract.
Except as provided in Section VI, K below, this Contract shall be in effect as long as the
Owner retains control over properties which utilize CDBGR funds for acquisition, construction or
rehabilitation of affordable housing, including income generated from the funds. The City's
obligation to provide funding under this Contract shall be from October 1, 2009 to September 30,
balances, and receivable accounts to the City), and determining the custodianship of
records.
7. Audits and Inspections.
a. All Subrecipient records with respect to any matters covered by this Contract
shall be made available to the Subrecipient, the City, their designee or the
Federal Government, at any time during normal business hours, as often as
the Subrecipient or City deems necessary, to audit, examine and make
excerpts or transcripts of all relevant data. Any deficiencies noted in audit
reports must be fully cleared by the City within thirty (30) days after receipt
by the City. Failure of the Subrecipient to comply with the above
requirements will constitute a violation of this contract and may result in the
withholding of future payments.
b. Subrecipient acknowledges that the federal funds subgranted to it are subject
to the Single Audit of the City. The City, the US. Department of Housing
and Urban Development, the Comptroller General of the U.S. or any of their
duly authorized representatives or auditors, shall have access to any books,
documents, papers and records of the Subrecipient or its auditors which are
directly pertinent to the Contract for the purpose of the City's Single Audit.
All financial records pertaining to this Contract upon completion shall
remain the propertyof the City.
C. If Subrecipient expends $500,000 or more of federal awards (including, but
not limited to funds received from the City pursuant to this Agreement),
within any of its fiscal years during which this Agreement is in force,
Subrecipient agrees to have a Single Audit performed, at no cost to the City,
in accordance with the Single Audit Act Amendments of 1996 and OMB
Circular A 133. In the event that the expenditures of $500,000 or more
indicated above are all pursuant to this Agreement, Subrecipient may elect to
have a program -specific audit conducted in accordance with said Act and
Circular. Said audit shall be submitted to the Office of the Controller of the
City within nine (9) months after the end of Subrecipient's fiscal year for
which the audit is performed
C. Monitoring and Evaluation.
The City reserves the right and is required to monitor and evaluate the progress and
performance of the Subrecipient to assure that the terms of this Contract are being
satisfactorily met in accordance with City and other applicable monitoring and evaluating
criteria and standards. Subrecipient shall cooperate with City relating to such monitoring
and evaluation, and make available to the City any documents or other information
requested by the City or relevant to the City's monitoring and evaluation.
D. Reporting and Payment Procedures.
1. Budgets.
10
A detailed contract budget for Subrecipient's proposed project, as described in
Exhibit C, and the specific use of the funds provided to Subrecipient under this and
other City grant programs, is included as Exhibit A, attached hereto and
incorporated herein by this reference. The City and the Subrecipient may revise the
budget from time to time in accordance with existing City policies, by amendment of
this Agreement.
2. Program Income.
The Subrecipient shall report yearly all program income, as defined at 24 CFR
570.500(a) generated by activities carried out with CDBG and/or HONIE funds
made available under this Contract, including, but not limited to, any rental income
or income derived from the sale of the property. The use of program income by the
Subrecipient shall comply with the requirements set forth at 24 CFR 570.504. By
way of further limitations, the Subrecipient may use such income during the Contract
period for activities described in the attached Scope of Services and shall report any
such income received and allocated to the Work to the City and reduce requests for
additional funds by the amount of any such program income balances on hand. All
program income not used in accordance with this Section shall be returned to the
City at the end of the Contract period. Any interest earned on cash advances from
the US. Treasury is not program income and shall be remitted promptly to the City.
3. Indirect Costs.
If indirect costs are charged, the Subrecipient will develop an indirect cost allocation
plan for determining the appropriate City share of administrative costs and shall
submit such plan to the City for approval prior to submission of requests for any
payments for the same.
4. Payment Procedures.
The City will pay to the Subrecipient funds available under this Contract based upon
information submitted by the Subrecipient and consistent with any approved budget
and City policy concerning payments. With the exception of certain advances,
payments will be made for eligible expenses actually incurred by the Subrecipient,
and not to exceed actual cash requirements. Payments will be adjusted by -the City in
accordance with advance fund and program income balances available in
Subrecipient accounts. In addition, the City reserves the right to liquidate funds
available under this Contract for costs incurred by the City on behalf of the
Subrecipient.
5. Progress Reports.
The Subrecipient shall submit regular Progress Reports to the City on a quarterly
basis until project completion and on a yearly basis thereafter or as required by the
Scope of Services. Quarterly reports shall include a narrative description of progress,
percentage of work completed, funds expended, and any issues or problems. During
11
any required period of affordability, the recipient will submit a yearly occupancy
report and the City may require submission of a yearly audit.
E. Procurement.
1. Compliance.
The Subrecipient shall comply with current City policy conceming the purchase of
equipment and shall maintain an inventory record of all non -expendable personal
property as defined by such policy as may be procured with funds provided herein.
All program assets (unexpended program income, property, equipment, etc) shall
revert to the City upon termination of this Contract, except as otherwise specifically
provided.
2. Applicable Standards.
The Subrecipient shall procure materials in accordance with the requirements of 24
CFR Part 85.36, covering procurement, and shall subsequently follow 24 CFR Parts
85.31 and 85.32, covering utilization and disposal of property.
3. Relocation, Acquisition and Displacement.
The Subrecipient agrees to comply with 24 CFR 570.606 and 92.353 relating to the
acquisition and disposition of all real property utilizing grant funds and to the
displacement of persons, businesses, non-profit organizations and farms occurring as
a direct result of any acquisition of real property utilizing grant funds.
4. Property Acquired With Program Funds.
Subrecipient agrees to use all personal assets and all real property, acquired or
improved, in whole or in part, with ®BGR funds, as set forth in Exhibit A. In the
event Subrecipient ceases to use a personal asset or real property acquired or
improved, with ®BGR funds, in accordance with Exhibit A, the Subrecipient shall
return the personal asset or real property to the City, or pay to the City a sum equal
to its fair market value, less any portion of the value attributable to expenditures of
non-CDBGR funds for the acquisition of, .or improvement to, the asset or property.
The Subrecipient shall transfer to the City any CDBGR funds on hand at the time
of expiration of this Contract and any accounts receivable of ®BGR funds.
5. No Liens on Items or Property.
At the time of obtaining title or possession of any personal or real property listed in
Exhibit D, attached hereto and incorporated herein by this reference, Subrecipient
agrees to provide to the City, through a deed of trust from the Owner to the City
which shall constitute evidence of the security interest in said property under this
Agreement which the City deems appropriate, based upon the nature of the
property, the Scope of Services, the potential term of the security interest, and such
other reasonable consideration as the City may deem appropriate in protecting its
12
interest in the funds provided hereunder. Subrecipient further agrees that in addition
to, or in lieu of the above, the City may require the execution and recordation of
Deed Restrictions on real property purchased in connection herewith, in order to
protect the City's interest in the funds provided hereunder.
VIII. Personnel and Participant Conditions.
A. Civil Rights.
1. Compliance.
The Subrecipient agrees to comply with Chapter 13, Article II, of the City Code and
Title 24, Article 34, Parts 3 through 7, C.R.S., and with Title VI of the Civil Rights
Act of 1964, as amended, Title VIII of the Civil Rights Act of 1968, as amended,
Section 109 of Title 1 of the Housing and Community Development Act of 1974,
Section 504 of the Rehabilitation Act of 1973, the Americans With Disabilities Act
of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and with
Executive Order 11246, as amended by Executive Orders 11375 and 12086.
2. Nondiscrimination.
The Subrecipient will not discriminate against any employee or applicant for
employment because of race, color, creed, religion, ancestry, national origin, sex,
disability or other handicap, age, marital status, or status with regard to public
assistance in accordance with 24 CFR 92.350. The Subrecipient will take affirmative
action to ensure that all employment practices are free from such discrimination.
Such employment practices include but are not limited to the following: hiring,
upgrading, demotion, transfer, recruitment or recruitment advertising, layoff,
termination, rates of pay or other forins of compensation and selection for training,
including apprenticeship. The Subrecipient agrees to post in conspicuous places,
available to employees and applicants for employment, notices to be provided by the
City setting forth the provisions of this nondiscrimination clause. The subrecipient
will serve all eligible beneficiaries without regard to religion and may not restrict
housing to people of a particular religion or by reason of their participation (or lack
thereof) in religious activities.
3. Land Covenants.
This contract is subject to the requirements of Title VI of the Civil Rights Act of
1964 (P.L. 88-352) and 24 CFR 570 Part 1. In regard to the sale of land acquired,
cleared or improved with assistance provided under this Contract, the Subrecipient
shall cause or require a covenant running with the land to be inserted in the deed for
such transfer, prohibiting discrimination as herein defined in the sale, or in the use or
occupancy of such land, or in any improvements erected or to be erected thereon,
providing that the Subrecipient and the United States are beneficiaries of and entitled
to enforce such covenants. The Subrecipient, in undertaking its obligation to carry
13
the program assisted hereunder, agrees to take such measures as are necessary to
enforce such covenant and will not itself so discriminate.
4. Section 504.
The Subrecipient agrees to comply with any federal regulations issued pursuant to
compliance with Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 706),
which prohibits discrimination against the handicapped in any federally -assisted
program.. The City shall provide the Subrecipient with any guidelines necessary for
compliance with that pot -don of the regulations in force during the term of this
Contract. All common spaces must be made accessible in accordance with the
Uniform Federal Accessibility Standards.
B. Affirmative Action.
1. Approved Plan.
The Subrecipient agrees that it shall be committed to carry out pursuant to the Cit�s
specifications an Affirmative Action Program in keeping with the principles as
provided in President's Executive Order 11246 of September 24, 1965. The City
shall provide Affirmative Action guidelines to the Subrecipient to assist in the
formulation of such program. The Subrecipient shall submit a plan for an
Affirmative Action Program for approval prior to the award of funds.
2. W/MBE.
The Subrecipient will use its best efforts to afford minority and women -owned
business enterprises the maximum practicable opportunity to participate in the
performance of this Contract. As used in this Contract, the term "minority and
female business enterprise" means a business at least fifty-one (51) percent owned
and controlled by minority group members or women. For the purpose of this
definition, "minority group members" are Afro-Americans, Spanish-speaking,
Spanish surnamed or Spanish -heritage Americans, Asian -Americans and American
Indians. The Subrecipient may rely on written representations by Subrecipients
regarding their status as minority and female business enterprises in lieu of an
independent investigation.
3. Access to Records.
The Subrecipient shall furnish and cause the Owner to furnish all information and
reports required hereunder and will permit access to its books, records and accounts
by the City, HUD, or its agent, or other authorized federal officials for purposes of
investigation to ascertain compliance with the rules, regulations and provisions stated
herein.
14
4. Notifications.
The Subrecipient will send to each labor union or representative of workers with
which it has a collective bargaining agreement or other contract or understanding, a
notice, to be provided by the agency contracting officer, advising the labor union or
workers' representative of the Subrecipient's commitments hereunder, and shall post
copies of the notice in conspicuous places available to employees and applicants for
employment.
5. EEO/AA Statement.
The Subrecipient will, in all solicitations or advertisements for employees placed by
or on behalf of the Subrecipient, state that it is an Equal Opportunity or Affirmative
Action employer.
Subcontract Provisions.
The Subrecipient will include the provisions of Paragraphs VIII A, Civil Rights, and
B, Affirmative Action, in every subcontract or purchase order, specifically or by
reference, so that such provisions will be binding upon each subSubrecipient or
vendor.
C. Employment Restrictions.
1. Prohibited Activity.
The Subrecipient shall prohibit Owner from using funds provided herein or
personnel employed in the administration of the program for political activities;
sectarian or religious activities; lobbying, political patronage and nepotism activities.
In addition (1) no Federal appropriated funds have been paid or will be paid, by or
on behalf of the undersigned, to anyperson for influencing or attempting to
influence an officer or employee of an 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; and (2) if any funds other than Federal appropriated
funds have been paid or will be paid to any person for influencing or attempting to
influence an officer or employee of any agency, a Member of Congress, an officer or
employee of Congress, or an employee of a Member of Congress in connection with
this Federal contract, grant loan or cooperative agreement, the undersigned shall
complete and submit Standard FOmrLLL, "Disclosure Farm to Report Lobbying,"
in accordance with its instructions.
"EMOUG-Po"
Where employees are engaged in activities not covered under the Occupational
Safety and Health Act of 1970, they shall not be required or permitted to work, be
15
trained or receive services in buildings or surroundings or under working conditions
which are unsanitary, hazardous or dangerous to the participants' health or safety.
3. Right to Know.
Participants employed or trained for inherently dangerous occupations, e.g., fire or
police jobs, shall be assigned to work in accordance with reasonable safety practices.
The Subrecipient will comply with all applicable "Right to Know" Acts.
4. Labor Standards.
a. The Subrecipient agrees to comply with the requirements of the Secretary of
Labor in accordance with the Davis -Bacon Act as amended, the provisions
of Contract Work Hours and Safety Standards Act, the Copeland "Anti -
Kickback" Act (40 U.S.C. 276, 327-333) and all other applicable federal, state
and local laws and regulations pertaining to labor standards insofar as those
acts apply to the performance of this Contract. The Subrecipient shall
maintain documentation which demonstrates compliance with wage and
hour requirements of this part. Such documentation shall be made available
to the City for review upon request.
b. The Subrecipient agrees that, except with respect to the rehabilitation or
construction of residential property designed for residential use for less than
eight (8) units, all contractors engaged under contracts in excess of Two
Thousand Dollars ($2,000) for construction, renovation or repair of any
building or work financed in whole or in part with assistance provided under
this Contract, and/or with respect to the rehabilitation or construction of
residential property where there are more than 12 HOME -assisted units, the
Subrecipient shall comply with federal requirements adopted by the City
pertaining to such contracts and with the applicable requirements of the
regulations of the Department of Labor, under 29 CFR Parts 3, 1, 5 and 7
governing the payment of wages and ratio of apprentices and trainees to
Journeymen; provided, that if wage rates higher than those required under
the regulations are imposed by state or local law, nothing hereunder is
intended to relieve the Subrecipient of its obligation, if any, to require
payment of the higher wage.
"Section 3" Clause.
a. Compliance.
Compliance with the provisions of Section 3 of the Housing and Urban
Development Act of 1968, as amended, 12 U.S.C. 1701, the regulations set
forth in 24 CFR 135, and all applicable rules and orders issued hereunder
prior to the execution of this Contract, shall be a condition of the federal
financial assistance provided under this Contract and binding upon the City,
the Subrecipient and any subSubrecipients. Failure to fulfill these
requirements shall subject the City, the Subrecipient, Owner and their
16
successors and assigns, to those sanctions specified by the Contract through
which federal assistance is provided. The Subrecipient certifies and agrees
that no contractual or other disability exists which would prevent complaint
with these requirements.
Construction Standards: For properties undergoing construction and
rehabilitation, all units must meet all City codes and ordinances at the time of
completion. Certificates of Occupancy must be submitted at project
completion. For new construction of multifamily projects with four or more
units, all of the units in buildings with elevators and all of the ground floor
units in buildings without elevators must meet the design and construction
requirements of the Fair Housing Act.
The Subrecipient further agrees to comply with these "Section 3"
requirements and to include the following language in all subcontracts after
the effective date of this Contract:
The work to be performed under this contract is a project
assisted under a program providing direct federal financial
assistance from HUD and is subject to the requirements of
Section 3 of the Housing and Urban Development Act of
1968, as amended, 12 U.S.C. 1701. Section 3 requires that to
the greatest extent feasible opportunities for training and
employment be given to 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 areas
of the project.
The Subrecipient certifies and agrees that no contractual or other disability
exists which would prevent compliance with the requirements.
b. Notifications.
The Subrecipient agrees to send to each labor organization or representative
of workers with which it has a collective bargaining agreement or other
contract or understanding, if any, a notice advising said labor organization or
workers' representative of its commitments under this Section 3 clause and
shall post copies of the notice in conspicuous places available to employees
and applicants for employment or training.
C. Subcontracts.
The Subrecipient will require Owner to include this Section 3 clause in every
subcontract executed after the date of this Agreement and will take
appropriate action pursuant to such subcontracts upon a finding that the
Owner is in violation of regulations issued by the City. The Subrecipient will
not subcontract with Owner if it has notice or knowledge that the latter has
17
been found in violation of regulations under 24 CFR 135 and will not let
permit Owner to subcontract unless the Owner has first provided it with a
preliminary statement of ability to comply with the requirements of these
regulations.
D. Conduct.
Assignability.
The Subrecipient shall not assign or transfer any interest in this Contract or any
property obtained using the funds provided under this Contract without the prior
written consent of the City thereto; provided, however, that Subrecipient may
require that Owner fulfill all applicable obligations of the Subrecipient hereunder;
and provided further that claims for money due or to become due to the
Subrecipient from the City under this Contract may be assigned to a bank, trust
company or other financial institution without such approval. Notice of any such
assignment or transfer shall be furnished promptly to the City.
2. Conflict of Interest.
The Subrecipient agrees to abide by the provisions of 24 CFR 570.611 with respect
to conflict of interest, and covenants that it presently has no financial interest and
shall not acquire any financial interest, direct or indirect, which would conflict in any
manner or degree with the performance of services required under this Contract.
The Subrecipient further covenants that in the performance of this Contract, no
person having such a financial interest shall be employed or retained by the
Subrecipient hereunder. These conflict of interest provisions apply to any person
who is an employee, agent, consultant, officer or elected official or appointed official
of the City, or of any designated public agencies or subrecipients which are receiving
funds under the CDBGR Entitlement program.
3. Subcontracts.
a. Approvals.
The Subrecipient shall not enter into any subcontracts with any agency or
individual in the performance of this Contract without the written consent of
the City prior to the execution of such contract.
b. Monitoring.
The Subrecipient will monitor all subcontracted services on a regular basis to
assure compliance with both this Contract and the applicable subcontract.
Results of monitoring efforts shall be summarized in written reports and
supported with documented evidence of follow-up actions taken to correct
areas of noncompliance.
18
C. Content.
The Subrecipient shall require Owner to cause all of the provisions of this
Contract in its entirety to be included in and made a part of any subcontract
executed after the date of this Contract.
d. Selection Process.
The Subrecipient shall undertake to ensure that all subcontracts executed
after the date of this Contract shall be awarded in a fair and open
competition basis. Executed copies of all subcontracts shall be forwarded to
the City, along with documentation concerning the selection process.
4. Copyright.
If this Contract results in any copyrightable material, the City reserves the right to
royaltTfree, non-exclusive and irrevocable license to reproduce, publish or otherwise
use and to authorize others to use, the work for government purposes.
5. Religious Organization.
The Subrecipient shall require Owner to agree that funds provided under this
Contract will not be utilized for religious activities, to promote religious interests, or
for the benefit of a religious organization in accordance with the federal regulations
specified in 24 CFR 570.2000). See also Exhibit E. The recipient cannot require a
beneficiary to participate in inherently religious activities; however, a faith -based
organization may retain its independence to carry out its mission, including allowing
a Board of Directors to be selected based on religious practice.
6. Fair Housing.
All housing (for sale or rent) assisted with funding through the City must be made
available without discrimination based on race, color, national origin, age, sex,
religion, familial status or disability according to Title VIII of the City Rights Act of
1968, Title VI of the Civil Rights Act of 1964, the Age Discrimination Act of 1975,
Executive Orders 11063 and 12259 — Equal Opportunity in Housing, Section 504,
Title II of the Americans with Disabilities Act.
IX Environmental Conditions.
When applicable, no funds. shall be obligated or expended until an Environmental Review is
completed and accepted by HUD and the City of Fort Collins.
A. Air and Water.
19
2011 and shall be contingent upon full compliance by Owner with all terms and conditions set forth.
herein.
III. Payment.
If the Subrecipient is not in default hereunder, and subject to the City's receipt of the
Department of Housing and Urban Development CDBG - R funds, and provided that the Contract
and Scope of Services are eligible expenditures of CDBGR, the City agrees to pay the Subrecipient
CDBG-R funding of TWO HUNDRED THIRTY THOUSAND FOUR HUNDRED SIXTY
SIX AND NO/100 ($230,466). Payment shall be made upon presentation of invoices which
Subrecipient certified are true and correct copies of payments due on behalf of the Subrecipient, for
an activity covered by this Contract and made in accordance and compliance with the Scope of
Services. In no event shall the City's obligation to make payment to the Subrecipient hereunder
exceed TWO HUNDRED THIRTY THOUSAND FOUR HUNDRED SIXTY SIX AND
NO/100 ($230,466) DOLLARS. Payments maybe made during the term of this Contract once a
month in cases covering reimbursement for operation costs, otherwise upon presentation of
vouchers accompanied by invoices or receipts showing date paid. Payment may be suspended by
the City in the event of nonperformance of Subrecipient. Payments may also be contingent upon
certification of the Subrecipient's financial management system in accordance with the ,standards
specified in Title 24, CM Part 85.
All funds are provided as a "due -on -sale loan" at zero -percent interest unless otherwise
specified in the Scope of Services. Loans also require payment of five percent of the total loan
amount to cover the cost of administering the loan, which payment shall be made to the City at the
pay off of the loan. All loans are due in full upon sale or transfer or in the event the property fails
to meet eligibility requirements or a national objective, or the applicant commits fraud, deceit or
misrepresentation in obtaining funding.
IV. Notices.
Communications and details concerning this Contract shall be directed to the following Contract
representatives:
City of Fort Collins:
CDBG/HOME Administrator
Advance Planning Department
City of Fort Collins
P.O. Box 580
Fort Collins, CO 80522-0580
(970) 221-6758
Subrecipient--
Executive Director
Ft. Collins Housing Corporation
1715 West Mountain
Fort Collins CO 80521
970-416-2917
The Subrecipient shall require Owner to agree to comply with the following laws and
regulations, along with any other environmental or public health related laws or regulations,
insofar as they apply to the performance of this Contract:
• Clear Air Act, 42 US.C.,1857, et seq.;
• Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251, et seq., as amended
1318 relating to inspection, monitoring, entry, reports and information, as well as other
requirements specified in said Section 114 and Section 308, and all regulations and
guidelines issued thereunder;
• Environmental Protection Agency (EPA) regulations pursuant to 40 CFR, Part 50, as
amended;
• National Environmental Policy Act of 1969; and
• HUD Environmental Review Procedures (24 CFR Part 58).
B. Flood Disaster Protection.
The Subrecipient shall require Owner to comply with the requirements of the Flood Disaster
Protection Act of 1973 (P.L. 2234) in regard to the sale, lease or other transfer of land
acquired, cleared or improved under the terms of this Contract, as it may apply to the
provisions of this Contract. Compliance measures may include, but are not limited to,
maintaining flood insurance, structural adaptation or other mitigation as required.
C. Lead -based Paint.
The Subrecipient shall require Owner to agree that any construction or rehabilitation of
residential structures with assistance provided under this Contract shall be subject to HUD
Lead -based Paint Regulations at 24 CFR 570.608, and 24 CFR Part 35, and in particular
Subpart B thereof. Such regulations pertain to all HUD -assisted housing and require that all
owners, prospective owners, and tenants or properties constructed prior to 1978 be properly
notified that such properties may include lead -based paint, and shall be inspected for lead
hazards prior to purchase or rehabilitation.
D. Historic Preservation.
The Subrecipient shall require Owner to comply with the Historic Preservation requirements
set forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and
the procedures set forth in 36 CFR Part 800, Advisory Council on Historic Preservation
Procedures for Protection of Historic Properties, insofaras they apply to the performance of
this Contract.
In general, this requires concurrence from the State Historic Preservation Officer for all
rehabilitation and demolition of historic properties that are fifty (50) years or older or that
are included on a federal, state or local historic property list.
X. Entire Agreement/Governing Law.
20
The provisions set forth in Items I -IX, and all attachments to this Contract; and the
applicant's corresponding application for the City's Competitive Process, and the applicant's verbal
presentation before the CDBG Commission, the Promissory Note(s), the Deed(s) of Trust, and the
Agreement of Restrictive Covenants for Real Property and any other applicable legal documents,
constitute the entire agreement between the parties hereto and no statement, promise, conditions,
understanding, inducement or representation, oral or written, express or implied, which is not
contained herein shall be binding or valid. This contract shall be binding upon the parties, their
agents, representatives, successors and assigns. This Contract shall be governed under the laws of
the State of Colorado.
21
IN WITNESS WHEREOF, the parties have executed this Contract as of the date of the
most recent signatory.
IV
City Cie&
' X-
1W'jPUt7 ' • •
A, W, Z;
•
ATTEST:
oard Secre
iporate Seal
THE CITY OFF RT COLLINS, COLORADO
A Municipal Corp tion
By Date 10 2 G
Darin A tteberry, City Manager
FT.COLLINS HOUSING CORPORATION
By %17�10-1— Date R 47,;q
Tit : Board PrK4ent
Fed. I.D. Number: 74-2177138
DUNS# 619233054
22
EXHIBIT A
SCOPE OF SERVICES
1. Project Description and Objectives: The Village on Stanford rehabilitation project will
provide energy upgrades and other improvements to ensure that the property remains
permanently affordable and viable.
2. Amount of award, source of funding:
FY08 CDBG-R $230,466
Total $230,466
3. Terms of the Loan: Payable with a 5% service fee at once upon the occurrence of the first of
the following events: (1) sale or transfer of any interest in the property, except in the case of
foreclosure or as is otherwise allowed pursuant to this Deed of Trust; or (2) Grantor fails to
utilize the real property secured by this Deed of Trust as housing to benefit a client
population consisting of households with gross incomes of 80% of median or less or (3)
forty years from the date of the Promissory Note.
3. Project Address, number of units in the project and number of accessible units:
2613 Stanford Road
2701 Stanford Road
The project contains 82 one- and two -bedroom apartments.
A portion of the project will involve creating 5 accessible units.
4. Legal Description:
2613 Stanford Road: Lot 4, Less S 43 FT, Fahrenbruch Leisure Village 2nd
2701 Stanford Road: Lot 23, Fahrenbruch Leisure Village 3rd
5. Number of units by bedroom size and the subsidy per unit:
53 one -bedroom units $2,810 per unit
29 two -bedroom units $2,810 per unit
6. Affirmative Marketing: Projects with five (5) or more units must have an Affirmative
Marketing Plan including minority and women outreach requirements and outreach to persons
with disabilities submitted to and approved by the City prior to the release of funds. The
marketing plan must include a description of the practices that will be required to carry out the
plan and the specific procedures to be followed to inform and solicit applications from persons
needing special outreach. Records of such actions are to be kept for the duration of the
affordability period which may be reviewed by the City on an annual basis.
23
7. Low and Moderate Income Benefit. The units are currently occupied byhouseholds with
income to or less than 50% of the area median income. Income limits are attached to this
document as Exhibit " B-1" and maybe amended as necessary. The Subrecipient shall insure
that 51% of the units in the project shall be rented to households at 80% or less of the Area
Median Income. The Subrecipient shall determine annual income of the Project beneficiaries
using Section 8 Housing Program income definitions as per 24 CFR Part 813.
8. Affordability — Rental: For all Cityfunding, regardless of changes in fair market rents and in
median incomes over time, the qualifying rents are not required to be lower than the fair market
rents for the project in effect at the time of contract execution. Area median incomes and Fair
Market Rents are annually adjusted by the department of Housing and Urban Development
(HUD). Rent and income levels must be reviewed annually by the City for compliance with the
above requirements. The Fair Market Rent schedule, as set forth in Exhibit `B-2" is attached
hereto and is incorporated herein by reference, or as subsequently promulgated in writing by the
City. The Subrecipient shall ensure that all of the units in the Project continue to be used to
provide housing for low and moderate income persons at affordable rents.
9. Deed Restriction: lice City shall be responsible for executing a deed restriction that will
ensure.that the property will remain affordable without regard to the term of any mortgage or
the transfer of ownership for not less than the appropriate term described in the previous
paragraph. The period of affordability for this project is 20 (twenty) years regardless of
repayment of loan and/or transfer or sale of the property.
10. Tenant and Participants Protection: The lease between a tenant and an owner of rental
housing must be for not less than one year, unless by mutual agreement between the tenant and
the owner. Leases must specify that tenants must receive at least 30 days written notice prior to
implementing a rent increase. The lease may not contain any of the prohibited lease terms listed
in 24 CFR Part 92.253(b). In addition, all leases must comply -with applicable state or local
tenant -landlord laws.
11. Program Income: All revenues received by the Subrecipient which result directly from an
assisted activity shall be considered program income. Program income includes, but is not
limited to, principal and interest payments and proceeds from the sale of acquired assets. All
program income is subject to all CDBG-R requirements, and must be reported annually to the
City. The City will, as allowed by HUD, permit the Subrecipient to keep all program income
generated by the assisted activity to be used to benefit the activity for as long as the activity
meets a CDBG National Objective.
12. Contract Administration. The City is responsible for providing the following information to
the Subrecipient yearly as it becomes available: income limits, rent limits, utilityallowances and
any changes to HUD requirements that may affect the management of the project. The
Subrecipient shall be responsible for the timely completion of the Scope of Services
requirements.
13. City Monitoring. The City is responsible for the monitoring of this project for the duration of
the loan and required affordability period. On -site monitoring will be done according to the
following schedule: projects with 26 or more units will be monitored yearly.
24
14. Housing Standards. These units will, at a minimum, meet HUD's Housing Quality Standards
(24 CFR, Section 982.401 and 92.251, incorporated by reference), including lead -based paint
requirements at 24 CFR Part 35 and all applicable local and state building codes and standards.
15. Davis -Bacon Fair Labor Standards: This contact is subject to the Davis -Bacon requirements
for the following reason: the project contains 8 or more units for the C)BG threshold. When
applicable, the subrecipient shall comply with all the requirements of the Davis -Bacon Fair
Labor Standards Act and keep all required records which will be available to the Department of
Housing and Urban Development upon request.
16. Time of Performance. The Project shall commence upon the full and proper execution of this
Contract and shall be completed on or before September 30, 2011. However, the Project time
of Performance maybe extended by letter, subject to mutual agreement of the City and the
Contractor. To initiate this process, a written request shall be submitted to the Citybythe
Contractor at least sixty (60) days prior to September 30, 2011 and shall include a full
justification for the extension request.
17. If New Construction: Not applicable.
18. If the subrecipient is a Community Housing Development Organization: All recipients of
CH DO funds must establish and implement a plan for tenant participation in management
decisions and establish a fair lease and grievance procedure which must be approved by the City
prior to release of funds.
19. Single Family Housing Developer Roles and Responsibilities: Not applicable.
25
EXHIBIT A-2
SCHEDULE FOR COMPLETION
The project shall be completed on or before September 30, 2011.
26
EXHIBIT B-1
INCOME LIMITS
2009 Income Limits
Income Limits (as of 03119/2009)
2009 Median Income for a Family of 4: $75,200
(Fort Collins/Loveland Metropolitan Statistical Area)
Household Members
Income
100%of median
52,625
60,125
63,320
75,200
81,187
87,187
93,187
99,187
80% of median
42,100
48,100
54150
60,150
64,950
69,750
74 550
79,350
60% of median
31,575
36075
37,992
45120
48712
52312
55912
59,512
50% of median
26300
30 100
33,850
37,600
40,600
43600
46,600
49,600
30% of median
15,800
18,050
20,300
22,550
24,350
26,150
27,950
29,25
50 — 80%: Low Income
Below 50%: Very Low Income
Below 30%: ExEmmely Low Income
27
EXHIBIT B-2
HOME Rents (10/01/2008) (includes utilities)
Rent
'0,'bdrrn
1-bdrm
:2-bdrm
3-bdrni
4-bdrm
FAIR
574
688
845
1214
1415
MARKET
28
EXHIBIT C
PROJECT BUDGET
Please note: The Sources and Uses statement from the application is hereby incorporated into the
agreement from which the following is itemized:
Funding Available: $230,466
Eligible Costs:
Project Administration $ 23,046
Individual eligible costs
Rehab costs $207,420
29
V. Special Conditions.
The Subrecipient agrees to comply with the requirements of Title 24 Code of Federal
Regulations, Part 570, of the Housing and Urban Development regulations concerning Community
Development Block Grants, Title XII of Division A of the American Recovery and Reinvestment
Act of 2009 and all federal regulations and policies issued pursuant to these regulations. The
Subrecipient further agrees to utilize funds available under this Contract to supplement rather than
supplant funds otherwise available.
SECTION 1.1 COMPLIANCE WITH LAWS
The Recipient, in performance of this Agreement, agrees to comply -with all applicable
Federal, State and Local Laws and ordinances, and other policies and guidelines established for the
City of Fort Collins. Recipient agrees to comply with all provisions of the Americans with
Disabilities Act and all regulations interpreting or enforcing such act.
SECTION 1.2 COMPLIANCE WITH C.R.S. S 24-76.5-101(HB1023): Proof of Lawful
Presence
Recipient acknowledges that the City's funds are a "public benefit" within the meaning of
C.R.S. g 24-76.5-102. As such, the Recipient shall ensure compliance with C.R.S. § 24-76.5-103 of
State statute by performing the required verifications. Specifically, when required the Recipient shall
ensure that:
a. If the public benefit provided by the funds flows directly to a natural person (i.e., not a
corporation, partnership, or other legally -created entity) 18 years of age or older, he/she must do the
following:
@ complete the affidavit attached to this Agreement as Exhibit "D".
(iii) attach a photocopy of the front and back of one of the following forms of identification: a
valid Colorado driver's license or Colorado identification card; a United States military card or
military dependent's identification card; a United States Coast Guard Merchant Mariner
identification card; or a Native American tribal document.
b. If an individual applying for the benefits identified herein executes the affidavit stating that
he/she is an alien lawfully present in the United States, Recipient shall verify his/her lawful presence
through the federal systematic alien verification or entitlement program, known as the "SAVE
Program," operated by the U.S. Department of Homeland Security or a successor program
designated by said department. In the event Recipient determines through such verification process
that the individual is not an alien lawfully present in the United States, the Recipient shall not
provide benefits to such individual with the City's funds.
City acknowledges that the Scope of Services provided by Recipient herein may fall within
several exceptions to the verification requirements of C.R.S. 5 24-76.5-103 for non -profits. For
example, certain programs, services, or assistance such as, but not limited to, soup kitchens, crisis
ATTACHMENT D
Proof of Legal Residency
This signed forrn is to be a part of all residents' files.
AFFIDAVIT PURSUANT TO C.R.S.24-76.5-103
swear or affirm under penalty of perjury
under the laws of the State of Colorado that (check one):
I am a United States citizen, or
I am a Permanent Resident of the United States, or
I am lawfully present in the United States pursuant to Federal law.
I understand that this sworn statement is required by law because I have applied for a public
benefit. I understand that state law requires me to provide proof that I am lawfully present in the
United States prior to receipt of this public benefit. I further acknowledge that snaking a false,
fictitious, or fraudulent statement or representation in this sworn affidavit is punishable under the
criminal laws of Colorado as perjury in the second degree under Colorado Revised Statute 18-8-503
and it shall constitute a separate criminal offense each time a public benefit is fi•audulently received.
Signature Date
INTERNAL USE ONLY: Valid Forms of Identification
• current Colorado driver's license, minor driver's license, probationary driver's license, commercial driver's
license, restricted driver's license, instruction permit
• current Colorado identification card
• U.S. military card or dependent Identification card
• U.S. coast guard merchant mariner card
• Native American tribal document
After recording, return to;
Winthrop & Weinstine, P.A.
225 South Sixth Street
Suite 3500
Minneapolis, MN 55402
ASSIGNMENT AND ASSUMPTION
OF
RECIPIENT CONTRACT FOR TITLE XII OF THE DIVISION A
OF THE AMERICAN RECOVERY AND REINVESTMENT ACT
THIS ASSIGNMENT OF RECIPIENT CONTRACT FOR TITLE XII OF THE
DIVISION A OF THE AMERICAN RECOVERY AND REINVESTMENT ACT (this
"Assignment") dated as of October _. 2009, is made by FT. COLLINS HOUSING
CORPORATION, a Colorado nonprofit corporation ("FCHC"), whose address is 1715 West
Mountain Avenue, Fort Collins, Colorado 80521, to the VILLAGE ON STANFORD, LLLP, a
Colorado limited liability limited pm-tnership ("Partnership"). whose address is 1715 West
Mountain Avenue, Fort Collins, Colorado 80521.
RECITALS
A. FCI-1C entered into a Recipient Contract for Title XII of the Division A of the
American Recovery and Reinvestment Act with the City of Fort Collins dated October _, 2009
(tlie "ARRA Agreement") pursuant which the City agreed to lend funds in the original principal
amount of Two Hundred Thirty Thousand Four Hundred Sixty -Six and no1100 ($230,466.00)
(the "Loan") for the benefit of that multifamily affordable housing project commonly known as
the Villages on Stanford, located at 2613 — 2701 Stanford Road, Fort Collins, Colorado (the
.:Project").
B. The Project is owned by the Partnership and, to evidence the Loan, the Partnership
shall issue a Promissory Note, Deed of Trust secured by the Project, and an Agreement of
Restrictive Covenants Affecting Real Property, in favor of the City of Fort Collins (the "City"),
each of which shall be dated as of October _, 2009.
C. FCHC no,,v desires to assign all rights and obligations under the ARRA Agreement
from the FCHC to the Partnership and the City has agreed to consent to such assignment and
release the FCHC from any further obligations under the ARRA Agreement.
NOW.. THEREFORE. FOR GOOD AND VALUABLE CONSIDERATION, the receipt
and sufficiency of which are hereby acknowledged, FCHC, subject to the terns set forth below,
Hereby grants, bargains, sells, conveys, assigns, transfers and sets over unto the Partnership all of
FCHC's rights and obligations in the ARRA Agreement, together with all monies now owing or
that may hereafter become due or owing with respect to the Loan and the full benefit of all the
powers and all the covenants and provisions therein contained and all rights of FCHC therein.
The Partnership hereby assumes all of FCHC's rights and obligations under the ARRA
Agreement.
FCHC represents and warrants that there have been no amendments or modifications,
either oral or written, to the ARRA Agreement. The Partnership represents and warrants that it
owns marketable fee title to the Project.
In the event of a default under the Loan, FCHC covenants and agrees to do all things
reasonably necessary to give effect to the intent of this Assignment, including but not limited to
executing any other or further documents necessary or reasonably requested to protect the
interest of the Partnership or confirm the existence of this Assignment and, if necessary, to join
with the Partnership, in asserting any claims with respect to the ARRA Agreement.
This assignment and the covenants contained herein shall inure to the benefit and be
binding upon the successors and assigns of the respective parties hereto.
[The remainder of this page has been left blank. intentionallY.]
IN WITNESS WHEREOF, the undersigned has executed this Assignment as of the date
first above written.
FT.,eOLLINS HOUSING CORPORATION
•Its:
STATE OF COLORADO
ss.
COUNTY OF LARIMER )
Sep hem ber
The foregoing instrument was acknowledged3�Abefore me thisday of-GetaMr, 2009, by
I lie jBreW en , the i f I -
Of the Ft. Collins Housing Corporation, a Colorado
nonprofit corporation, on behalf of said c rporation.
WITNESS my hand and official seal. %n� �/I� • .�
Notary Seal
My co}I}1 P
expires:
STATE OF COLOR -ADO
,�lo aDi�
VILLAGE ON STANFORD, LLLP
By;. Village on,5,tanford, LLC
ts: eneral ar the
ulie .Brewen, C 'ef Manager
) ss.
COUNT'' OF LARIMER )
-A Sep%m bey
The foregoing instrument was acl aiowledged before me thiday of•Geteber, 2009, by
Julie J. Brewen, the Chief Manager of Village on Stanford, LLC, the general partner of Village on
Stanford, LLLP, a Colorado limited liability limited partnership, on behalf of said partnership.
WITNESS my hand and official seal.
30
1�
ot�r�f��d ? p
cor�plrr,: es: f o�
The undersigned consents to the assigmnent of the ARRA Agreement as set forth above and
releases the FCHC from all further rights, duties and obligations under the ARRA Agreement.
STATE OF COLORADO )
ss.
COUNTY OF LARIMER )
t•egoing instrument
and politic, c • .���',4
W NJ my hand anal o
•
.0
THE CITY OF FORT COLLINS
By: D.
Its:
was acknowledged before me this Uday of October, 2009, by
Y eSLAf of the City of Fort Collins, a public body corporate
cial seal.
49
Notary Seal TF OF C
My commission exl . . j
EXHIBIT A
PROPERTY
PARCELI:
LOT 4, FAHRENBRUCH LEISURE VILLAGE SECOND FILING. EXCEPT THE SOUTH
43.00 FEET THEREOF, IN THE CITY OF FORT COLLINS, COUNTY OF LARIMER,
STATE OF COLORADO.
PARCEL I1:
LOT 23, FAHRENBRUCH LEISURE VILLAGE THIRD FILING, INCLUDING THE
REPLAT OF LOTS S, 9, 10, 11, 12, 13 AND A PORTION OF LOT 4, FAHRENBRUCH
LEISURE VILLAGE SECOND FILING, If\' THE CITY OF FORT COLLINS, COUNTY OF
LARIMER, STATE OF COLORADO.
4 761234v'_
counseling and intervention, short-term shelter or prenatal care are not subject to the verification
requirements of C.R.S. � 24-76.5-103.
SECTION 1.3 COMPLIANCE WITH C.R.S. 5 8-17.5-101(HB 1343): Prohibition Against
Employing Illegal Aliens
Recipient represents and agrees that:
As of the date of this Agreement:
Recipient does not knowingly employ or contract with an illegal alien; and
Recipient has participated or attempted to participate in the basic pilot employment verification
program created in Public Law 208, 104th Congress, as amended, and expanded in Public Law 156,
108th Congress, as amended, administered by the United States Department of Homeland Security
(the "Basic Pilot Program") in order to verify that Recipient does not employ any illegal aliens.
Recipient shall not knowingly employ or contract with an illegal alien to perform works
under this Agreement or enter into a contract with a subcontractor that fails to certify to Recipient
that the subcontractor shall not knowingly employ or contract with an illegal alien to perform work
under this Agreement.
Recipient shall continue to applyto participate in the Basic Pilot Program and shall in writing
verify same every three (3) months thereafter, until Recipient is accepted or the public conduct for
services has been completed, whichever is earlier. The requirements of this section shall not be
required or effective if the Basic Pilot Program is discontinued. Recipient is prohibited from using
Basic Pilot Program procedures to undertake pre -employment screening of job applicants while this
Agreement is being performed. The `Basic Pilot Program" is the Basic Pilot Employment
Verification Program created in Public Law 208, 104th Congress, as amended, and expanded in Public
Law 156, 108th Congress, as amended, that is administered by the United States Department of
Homeland Security. The application is currently on be at
https://www.vis-dhs,com/E=Ioyi!rRegiLstration .
If Recipient obtains actual knowledge that a subcontractor performing work under this
Agreement knowingly employs or contracts with an illegal alien, Recipient shall:
Notify such subcontractor and the City within three days that Recipient has actual knowledge that
the subcontractor is employing or contracting with an illegal alien; and
Terminate the subcontract with the subcontractor if within three days of receiving the notice
required pursuant to this section the subcontractor does not cease employing or contracting with the
illegal alien; except that Recipient shall not terminate the contract with the subcontractor if during
such three days the subcontractor provides information to establish that the subcontractor has not
knowingly employed or contracted with an illegal alien.
Recipient shall comply with any reasonable request by the Colorado Department of Labor
and Employment (the "Department") made in the course of an investigation that the Department
undertakes or is undertaking pursuant to the authority established in Subsection 8-17.5-102 (5),
C.R.S.
If Recipient violates any provision of this Agreement pertaining to the duties imposed by
Subsection 8-17.5-102, C.R.S. the City may terminate this Agreement. If this Agreement is so
terminated, Recipient shall be liable for actual and consequential damages to the City arising out of
Contractor's violation of Subsection 8-17.5-102, C.R.S.
The City will notify the Office of the Secretary of State if Recipient violates this provision of this
Agreement and the City terminates the Agreement for such breach.
VI. General Conditions.
A. General Compliance.
The Subrecipient agrees to comply with all applicable federal, state and local laws and
regulations governing the funds provided under this Contract.
B. Independent Contractor.
Nothing contained in this Contract is intended to, or shall be construed in any manner, as
creating or establishing the relationship of employer/employee between the parties. The
Subrecipient shall at all times remain an independent contractor with respect to the services
to be performed under this Contract. The City shall be exempt from payment of all
Unemployment Compensation, FICA, retirement, life and/or medical insurance and
Workers' Compensation insurance as the Subrecipient is an independent Subrecipient.
C. Liability.
As to the City, Subrecipient agrees to assume the risk of all personal injuries, including death
resulting therefrom, to persons, and damage to and destruction of property, including loss of
use therefrom, caused by or sustained, in whole or in part, in connection with or arising out
of the performance or nonperformance of this Contract by Subrecipient or by the
conditions created thereby. Subrecipient further agrees to indemnify and save harmless the
City, its officers, agents and employees, from and against any and all claims, liabilities, costs,
expenses, penalties and attorney fees arising from such injuries to persons or damages to
property or based upon or arising out of the performance or nonperformance of this
Contract or out of any violation by Subrecipient of any statute, ordinance, rule or regulation.
D. Workers' Compensation.
The Subrecipient shall provide Workers' Compensation insurance coverage for all employees
involved in the performance of this Contract.
E. Insurance and Bonding.
The Subrecipient shall assure that Owner 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 blanket fidelity bond covering all employees in an amount equal to
cash advances from the City. Specifically, the Subrecipient shall assure that Owner will
protect the City's investment by providing Property Insurance, Workers Compensation and
Employer's Liability Insurance, Commercial General Liability Insurance and All Risk
PropertyDamage Insurance.
F. Grantor Recognition.
The Subrecipient shall assure that Owner shall ensure recognition of the role of the City in
providing services through this Contract. All activities, facilities and items utilized pursuant
to this Contract shall be prominently labeled as to funding source. In addition, the
Subrecipient shall assure that Owner will include a reference to the support provided herein
in all publications made possible with funds made available under this Contract. Such
labeling and/or reference shall include the following credit line: "This project is partially
supported by Community Development Block Grant and/or HOME funding from the City
of Fort Collins."
G. Amendments.
The City or Subrecipient may amend this Contract at any time, provided that such
amendments make specific reference to this Contract and are executed in writing, signed by
a duly authorized representative of both organizations. Such amendments shall not
invalidate this Contract, nor relieve or release the City or Subrecipient from its obligations
under this Contract, except as expressly provided therein.
The City may, in its discretion, amend this Contract 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 Contract, such modifications will be incorporated
only by written amendment signed by both the City and Subrecipient.
H Suspension or Termination and Default.
Either party may terminate this Contract at any time by giving written notice to the
other parry of such termination and specifying the effective date thereof at least
thirty (30) days before the effective date of such termination. Partial terminations of
the Scope of Service in Paragraph I above may only be undertaken with the prior
approval of City.
2. The City may also suspend or terminate this Contract, in whole or in part, if
Subrecipient materially fails to comply with any term of this Contract, or with any of
the rules, regulations or provisions referred to herein; and the City may declare the
Subrecipient ineligible for any further participation in City ®BG/HOME
contracts, in addition to other remedies as provided by law. In the event there is
probable cause to believe the Subrecipient is in noncompliance with any applicable
laws, rules, or regulations, the City may withhold up to one hundred (100) percent of
said Contract funds until such time as the Subrecipient is found to be in compliance
by the City or is otherwise adjudicated to be in compliance, or to exercise the City's
rights under any security interest of the City arising hereunder.
3. In the event of any termination, all finished or unfinished documents, data, studies,
surveys, maps, models, photographs, reports or other materials prepared by
Subrecipient under this Contract shall, at the option of the City, become the
property of the City, and Subrecipient shall be entitled to receive just and equitable
compensation for any satisfactory work completed on such documents or materials
prior to the termination.
4. This Contract, and the Cit/s obligations under it, will automatically terminate in
the event of suspension or non -receipt of CDBGR funds bythe City.
Default is defined in this contract as noncompliance with requirements as
contained in the contract, use of funds for something other than the stated
purpose or material breach of the terms and conditions of funding. In particular a
default will occur if the housing acquired or improved by City funding does
not meet the affordability requirements for the duration of the affordability period
and/or ceases to meet a national objective for the life of the loan. In the event of
default, the City reserves the right to (1) direct the Owner to prepare a
corrective action plan and timetable to correct the default, (2) direct the
Owner to reimburse the City for any amounts provided and impose
monetary fines or penalties and (3) bar or suspend the Owner to limit or
prohibit future funding opportunities through the City.
Remedies: In the event of termination for cause, the City may pursue any remedies
available to it at law or in equity, including, without limitation, damages, specific
performance, and criminal remedies. All representations made by the Subrecipient
to the City either in this Agreement or for the purpose of inducing the City to
execute this Agreement are hereby sworn to the City to be true, correct, honest and
forthright and are made under penalty of perjury.
I. REPAYA ENT OF FUNDS
Affordability requirements remain with the property regardless of change of
ownership during the specified period of affordability. Payment in full is required in the
event of sale or transfer of the property encumbered by the loan, or in the event the project
fails to meet eligibility requirements, a national objective, commits fraud, deceit or
misrepresentation in obtaining funding.
J. DEED RESTRICTION
A deed restriction detailing affordability requirements will be placed on all properties
funded by the City which deed restriction will be used to enforce the long-term affordability
of the project.
VII. Administrative Requirements.
A- Financial Management.
1. Accounting Standards.
The Subrecipient agrees to comply with 24 CFR Part 85 and agrees to adhere to the
accounting principles and procedures required therein, utilize adequate internal
controls and maintain necessary source documentation for all costs incurred.
2. Cost Principles.
The 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", or A-87, "Cost Principles for State, Local, and Indian
Tribal Governments", as applicable; for all costs incurred whether charged on a
direct or indirect basis.
B. Documentation and Record -keeping.
1. Records to be Maintained.
The Subrecipient shall maintain all records required by the federal regulations
specified in 24 CFR Part 570.506 and that are pertinent to the activities to be funded
under this Contract. Such records shall include but not be limited to:
a. Records providing a full description of each activity undertaken including the
location of the project, the form of assistance provided and the per -unit
subsidy;
b. When applicable, 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, including minimum
and maximum per -unit subsidy limits, household income, and lease
requirements and tenant protections for each household;
d. Records required to document the acquisition, improvement, use or
disposition of real property acquired or improved with CDBG/HOME
assistance;
e. Records documenting compliance with the fair housing and equal
opportunity components of the CDBG-R program;
Financial records, and as required by 24 CFR Part 570.502, and 24 CFR Part
85, including documents to substantiate sources and uses of all funds in the
project disbursement of all funds; and
g. Other records necessary to document compliance with Subpart K of 24 CFR
570 including Section 3 actions, affirmative marketing and minority -owned
and female owned business data, displacement records, Davis -Bacon records,
lead paint compliance records and records supporting exceptions to the
conflict of interest prohibition.
2. Retention.
The Subrecipient shall retain all records pertinent to expenditures incurred under this
Contract for a period of five (5) years after the termination of all activities funded
under this Contract, or after the resolution of all Federal audit findings, which ever
occurs later. Records for non -expendable property acquired with funds under this
Contract shall be retained for five (5) years after final disposition of such property.
Records for any displaced person must be kept for five (5) years after he/she has
received final payment.
3. Client Data.
The 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, racial and ethnic data and single head of household data. In
addition, data will be retained for affordability and income targeting for each
household. Such information shall be made available to City monitors or their
designees for review upon request.
4. Property Records.
The Subrecipient shall require Owner to maintain real property inventory records
which clearly identify properties purchased, improved or sold. Properties retained
shall continue to meet eligibility criteria and shall conform with the "changes in use"
restrictions specified in 24 CFR Parts 570.503(b)(8).
National Objectives.
When CDBGR funding is used, the Subrecipient agrees to maintain documentation
that demonstrates that the activities carried out with funds provided under this
Contract meet one or more of the ®BGR program's national objectives: (1)
benefit low/moderate income persons, (2) aid in the prevention or elimination of
slums or blight, or (3) meet community development needs having a particular
urgency, as defined in 24 CFR Part 570.208, specific documentation of which shall
be maintained in the project file.
6. Close-outs.
The obligations to the City shall not end until all close-out requirements are
completed including repayment of any outstanding loans and completion of the
affordability period. 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