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AGREEMENT FOR BLOCK GRANT PROGRAM , J I AGREEMENT THIS AGREEMENT is entered into this 1st day of October, 1992, by and between the City of Clearwater, a Florida municipal corporation, having its principal office at 10 South Osceola Avenue, Clearwater, Florida, hereinafter referred to as the "City", and the TAMPA BAY COMMUNITY DEVELOPMENT CORP., hereinafter referred to as the "Provider". WITNESSETH: WHEREAS, the City has entered into an agreement with the U.S. Department of Housing and Urban Development for the purpose of conducting a Housing and Community Development Program (HUD) with federal financial assistance under Title I of the Housing and Community Development Act of 1974, as amended, hereinafter called "Act"; and the Cranston-Gonzalez National Affordable Housing Act of 1990; and ' WHEREAS, the City has determined through its Year Eighteen Final Statement of Objectives and Projected Use of Funds, which was adopted by City of Clearwater July 3, 1992, the necessity for providing downpayment assistance for low and moderate income families; and WHEREAS, the City desires to en9age the Provider to render certain services in connection therew1th: NOW, THEREFORE, the parties hereto agree as follows: SECTION I: SCOPE OF SERVICES A. The Provider agrees to implement the Homeownership Opportunity Program in Clearwater, in accordance with the projected accomplishments attached and made a fully binding part of this Agreement, as Appendix 1, as follows: Downpayment assistance for seven low and moderate income families to become homeowners in Clearwater SECTION II: CONDITION OF SERVICE The Provider hereby agrees to the following: A. The Program shall provide housing services to eligible low and moderate income individuals or families_ B. The Provider shall maintain in its file documentation on which determines that the project benefits low and moderate income persons, minorities and residents of Clearwater. Such records shall include, but not be limited to profiles identifying financial classification, head of household, ethnicity, race and gender, or area benefit data, as required. The Program ~rovides housing services to eligible low or moderate income 1ndividuals or families. c. The Provider shall maintain a citizen participation mechanism, r231~ erJ,'~ V:~ak Page 1 of 18 /(') ~ /c , / _. / ' ", <....-/ l ~. (~" J I which will include, but not be limited to the following: 1 Logging citizen comments or complaints when received. 2 . Copies of comments and/ or complaints received in writing. 3. Copies of responses to complaints and/or explanations of resolutions to complaints. D. The Provider shall comply with the following attachments to the Office of Management and Budget (OMB) Circular No. A-110, "Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals and Other Non-Profit organizations", incorporated by reference into this Agreement. 1. Attachment A, "Cash Depositories", except for paragraph 4 concerning deposit insurance. 2. Attachment E, "Bonding and Insurance". 3. Attachment C, "Retention and Custodial Requirements for Records", except that in lieu of the provisions in paragraph 4, the retention period for records pertaining to individual CDBG activities starts from the date of expiration of this Agreement, as prescribed in 570.507, in which the specific activity is reported on for the final time. 4. Attachment F, '''Standards for Financial Management Systems". 5. Attachment H, "Monitoring and Reporting Program Performance", paragraph 2. 6. Attachment N, "Monitoring Management Standards", except for paragraph 3 concerning the standards for real property and except that paragraphs 6 and 7 are modified so that in all cases in which personal property is sold, the proceeds shall be "program income" and that personal pro~ertf not needed by the sUb-recipient for CDBG act1vit1es shall be transferred to the recipient for the CDBG program or shall be retained after compensating the recipient. 7. Attachment 0, "Procurement Standards". E. Costs incurred under this program shall be in compliance with Federal Management Circular No. A-122, "Cost Pr1nciples for Non-Profit Organizations", incorporated by reference 1nto this Agreement_ F. The Provider shall abide by those provisions of 24 CFR Part 570 subpart J, when applicable, incorporated by reference into this Agreement. G. No expenditures or obligations shall be incurred for the Page 2 of 18 I. ) I program prior to a~proval and release of funds from the U.S. Department of Hous1ng and Urban Development. Further, it is expressly understood that in the event no funds are released from the U.s. Department of Housing and Urban Development in connection with this Program, then the City is not liable for any claims under this contract. H. The Provider shall certify, pursuant to Section 109 of the Act, that no person shall be denied the benefits of the program on the ground of race, color, national origin or sex. I. The Provider agrees that to the extent that it staffs the Program with personnel not presently employed by said party, it will take affirmative action in attempting to employ low income persons residing in the City of Clearwater, particularly minority group members_ J. The Provider shall comply with the provisions of 24 CFR 570.504 ec), "Program Income", gross income directly generated from the use of CDBG funds. In those instances where the City allows the sub-recipient to retain program income, these funds shall be expended for CDBG eligible activities, previously approved by the City in accordance with the projected accomplishments and budget descriptions attached to this Agreement. K. The Provider shall adhere to the applicable requirements contained in the "Acknowledgement of Economic Development Activities", attached hereto and made a part hereof as Appendix 2, if applicable. L. The Provider shall comply with First Amendment Church/State principles, as follows: It will not discriminate against any employee a~plicant for employment on the basis of relig10n w1ll not limit employment or give preference employment to persons on the basis of religion. It will not discriminate against any person applying public services on the basis of religion and will limit such services or give preference to persons on basis of religion_ ' 3. It will provide no religious instruction or counseling, conduct no religious worship or services, engage in no religious proselytizing, and exert no other religious influence 1n the provision of such pUblic services. 1. or and in 2. for not the 4. The portion of a facility used to provide public services assisted in whole or in part under this Agreement shall contain no sectarian or religious symbols or decorations. 5. The funds received under this Agreement shall not be used to construct, rehabilitate, or restore any religious facility which is owned by the Provider and 1n which the public services are to be provided. However, minor Page 3 of 18 I I repairs may made if such repairs are directly related to the public services; are located in a structure used exclusively for non-religious purposes; and constitute, in dollar terms, only a minor portion of the COBG expenditure for the public services. M. The Provider shall transfer to the City upon expiration of this Agreement, any COBG funds on hand at the time of expiration and any accounts receivable attributable to the use of COBG funds. The following restrictions and limitations apply to any real property under the Provider's control which was acquired or improved in whole or in part with COBG funds in excess of $25,000: 1_ Any real property under the Provider's control must be used to meet one of the National Objectives in the COBG Reaulations. Part 570.208 until five years or such lon'1er period of time as determined appropriate by the c~ty after expiration of the Agreement. 2. If the real property is sold within the period of time specified above, the property must be disposed of in a manner which results in the City being reimbursed in the amount of the current fair market value of the property, less any portion thereof attributable to expenditures on non-COBG funds for acquisition of, or improvement to, the property. Such reimbursement is required. N. The Provider agrees that when sponsoring a project financed in whole or in part under this Agreement, all notices, informational pamphlets, press releases, advertisements, descriptions of the sponsorship of the project, research reports, and similar public notices prepared and released by the Provider shall include the statement: FUNDED BY THE CITY OF CLEARWATER COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM" In written materials, the words "CITY OF CLEARWATER COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS ADMINISTERED BY THE DEPARTMENT OF PLANNING AND URBAN DEVELOPMENT" shall appear in the same size letters or type as the name of the Provider. O. The Provider shall ensure the following when entering into a sub-contract agreement: 1. The full correct legal name of the party shall be identified. 2. The "Scope of Services" shall describe the activities to be performed. P. The Provider shall maintain sufficient records in accordance with 24 CFR 570.502 and 570.506 to determine compliance with the requirements of this Agreement, the Community Oevelo~ment Block Grant Program and all applicable laws and regulat~ons. Page 4 of 18 I I This documentation shall include, but not be limited to, the following: 1. Books, records and documents in accordance with generally accepted accounting principles, procedures and practices which sufficiently and pro~erly reflect all revenues and e~enditures of funds prov1ded directly or indirectly by th1s Agreement, including matching funds and program income. 2. Time sheets for split-funded employees who work than one activity, in order to record the CDBG delivery cost by project and the non-CDBG charges. 3. How the statutory National Objective(s) and the eligibility requirement(s) under which fund1ng has been received, have been met. These also include special requirements such as necessary and appropriate determinations, income certifications, written agreements with beneficiaries, where applicable. on more activity related Q. The Provider is responsible for maintaining and storing all records pertinent to this Agreement in an orderly fashion in a readily accessible, permanent and secured location for a period of three (3) years after expiration of this Agreement, with the follow1ng exception: if any litigation, claim or audit is started before the expiration date of the three rear period, the records will be maintained until all litigat1on, claims or audit findings involving these records are resolved. The City shall be informed in writing after close-out of this Agreement, of the address where the records are to be kept. SECTION III: TERM OJ' AGREEMENT This Agreement shall be deemed effective upon approval and release of funds by the U.S. Department of Housing and Urban Development and being duly executed by both parties, whichever is later. This project shall become operational as of October 1, 1992, and shall continue through September 30, 1993. SECTION IV: TERMINATION The City and the Provider agree: A. This Agreement may be terminated by either party hereto by written notice of the other ~arty of such intent to terminate at least thirty (30) days pr10r to the effective date of such termination. B. This A9reement may be terminated in whole or in part, for conven1ence, when both parties a9ree upon the termination conditions. A written notificat1on shall be required and shall include the following: reason for the termination, the effective date, and in the case of a partial termination, the actual portion to be terminated. However, if, in the case of Page 5 of 18 I I .. a partial termination, the City determines that the rema1n1ng portion of the Agreement will not accomplish the purposes of such Agreement, the City may terminate such in its entirety. C. The City may place the Provider in default of this Agreement, and may suspend or terminate this Agreement in whole, or in part, for cause. 1. Cause shall include, but not be limited to, the following: a. Failure to comply and/or perform in accordance with this Agreement, or any federal statute or regulation. b. Submitting reports to the City which are late, incorrect or incomplete in any material respect. c. Implementation of this Agreement, for any reason, is rendered impossible or infeasible. d. Failure to respond in writin9 to any concerns raised by the City, includ1ng substantiating documents when required/requested by the City. e. Any evidence of fraud, mismanagement, and/or waste, as determined by the City's monitoring of the sUbreciJ?ient, and applicable HUD rules and regulat1ons. 2. The City shall notify the Provider in writing when the Provider has been placed in default. Such notification shall include actions taken by the City, such as withholding of payments, actions to be taken by the Provider as a condition precedent to clearing the deficiency and a reasonable date for compliance, which shall be no more than fifteen (15) days from notification date. 3. The City shall notify the Provider in writing when sufficient cause is found for termination of this A9reement. The Provider shall be given no more than f1fteen (15) days in which to reply in writing, appealing the term1nation prior to final action being taken by the City. D. Let it be further understood that upon curtailment of, or regulatory constraints placed on, the funds of the U. S. Department of Housing and Urban Development, this Agreement will terminate effective as of the time that it is determined such funds are no longer available. E. Costs of the Provider resulting from obligations incurred during a suspension or after termination, are not allowable unless the City expressly authorizes them in the notice of suspension or termination or subsequently. Other costs during suspension or after termination which are necessary and not Page 6 of 18 I I reasonably avoidable are allowable if: 1. The costs result from obligations which were properly incurred before the effective date of suspension or termination, are not in anticipation of it, and in the case of termination, are noncancelable, and 2. The costs would be allowable if the award were not suspended or expired normally at the end of the Agreement in which the termination takes effect. F. Upon termination of the Agreement, the Provider and the City shall meet to discuss the City's determination if any amounts are to be repaid to the City or if additional amounts are due the Provider. SECTION V: AMENDMENTS Any alterations, variations, modifications or waivers of this Agreement shall only be valid when they have been reduced to writing and duly signed by both parties. Any changes which do not substantially change the scope of the project and/or the Project Im~lementation Schedule or increase the total amount payable under th1s Agreement, shall be valid only when reduced to writing and signed by the City Administration and the Provider. The City shall not reimburse the Provider for outlays in excess of the funded amount of the Agreement unless and until the ci ty officially, in writing, approves such expenditure by executing a written modification to the original Agreement. SECTION VI: METHOD OF PAYMENT It is expressly understood and agreed that the total compensation to be paid hereunder for actual expenditures incurred shall not exceed Twenty seven thousand dollars ($27,000). Such funds must be expended during the term of the Agreement, and any remaining balance of funds shall revert to the City. Such compensation shall be paid in accordance with the projected accomplishments and budget descriptions attached hereto and made a part hereof as Appendix 1. A. The Provider shall submit monthly requests for payment for actual expenditures, including applicable back-up documentation, no later than the tenth (10th) day of the succeeding month and the City will provide reimbursement, upon approval, within ten (10) working days after receipt of the same, if submitted by the deadline data for inclusion on the drawdown request. B. The City agrees to pay the Provider for expenditures incurred under this Agreement on a monthly basis in accordance with the Budget and Project Implementation Schedule attached hereto and made a part hereof as Appendix 1. Line item transfers are allowable only within each component and may not exceed in the ag9regate fifteen percent (15%) of each line item without ~r1or written approval of the city. All changes amounting to more than fifteen percent (15%> require Drior written Page 7 of 18 I I : approval. SBCTION VII: CONFLICT OF INTBRBST The Provider covenants that no person, under its employ who presently exercises any functions or responsibilities in connection with Community Development funded activities, has any personal financial interests, direct or indirect, in this Agreement. The Provider covenants that in the performance of this Agreement, no person having such conflicting interest shall be employed. The Provider covenants that it will comply with all provisions of 24 CFR 570.611 "Conflict of Interest", and the state statutes governing conflicts of interest. The Provider shall disclose, in writing, to the City any possible conflicting interest or apparent impropriety that 1S covered by the Above provisions. This disclosure shall occur immediately upon knowledge of such possible conflict. The City will then render an opin1on which shall be binding on both parties. SBCTION VIII: INDEMNIFICATION The Provider shall indemnify and hold harmless the City from any and all claims, liability, losses and causes of action which may arise out of the Agreement. The Provider, through its insurance carrier, shall pay all claims and losses of any nature whatsoever in connection therewith and shall defend all suits in the name of the City, when applicable, and shall pay all costs and judgements which may issue thereon. Automobile and vehicle coverage shall be required when the use of automobiles and other vehicles are invol ved in any way in the performance of the Agreement. The Provider shall submit to the City an ORIGINAL Certificate of Insurance. All insurance coverage shall be approved by the City's Risk management Office prior to the release of any funds under this Agreement. Further, in the event evidence of such insurance is not forwarded to the Risk Management Office within thirty (30) days after the execution of this Agreement, this Agreement shall become null and void and the City shall have no obligation under the terms thereof unless a written extension of this thirty (30) day requirement is secured from the Insurance Manager. SBCTION IX: RBPORTING AND EVALUATION RBOUIREMBNTS Maintaining credibility for the community development effort rests heavily on the ability to produce an impact in low/moderate income areas, through progress in accomplishing scheduled activities. An effective method for maintaining project progress against a previously established schedule is through project evaluation and reporting, which will consist of both written reports and staff discussions on a regular basis. The Provider also assures prompt and efficient SUbmission of the following: Page 8 of 18 I I A. Monthly ReDorts are due no later than the tenth (lOth) day of the succeeding month and shall include the request for payment when applicable. Contents of the Monthly Report, attached hereto and made a part hereof as Appendix 3, shall include but not necessarily be limited to the following: 1. The Narrative Report Form 2. The Financial Summary Form, which shall include the request for payment and documentation, as applicable. 3. The Client Profile Form B. Semi-Annual proaress Evaluation. No later than April 10, the Provider shall submit evaluation of the effectiveness of the program during the first six months of the year. The purpose of this report is to permit the City to implement a subrecipient ranking system for requests for funding for the subsequent program year. This report shall be provided on forms to be developed by the City. This requirement may be waived if the Prov~der elects not to request funding in the subsequent program year. C. Final Evaluation. Within twenty (20) days of contract com)?letion, a final report documenting how the Statutory Nat~onal Objective and the eligibility requirements were met, must be submitted by the Provider to the City's Community Development Division for review and approval. The contents of same shall include a cumulative total of the data submitted during the program's operation. Further, such report shall include statistical findings which depict program efficiency; i.e., the number of dollars spent, including non-CDBG funding sources, to render actual service to program recipients, and an overall evaluation of the program' s effectiveness, and quantitative results. The final report will be evaluated and the Provider will be notified if additional data is necessary or that the project/activity is considered "closed-out". Other Reportinq Requirements may be required by the City in the event of program changes, need for additional information or documentat~on and/or legislation amendments. The Provider shall be informed, in writing, if any changes become necessary. Reports and/ or requested documentation not recei ved by the due date, shall be considered delinquent, and may be considered by the City as sufficient cause to suspend CDBG payments to the Prov~der. SECTION X: AUDIT AND INSPECTIONS At any time during normal business hours and as often as City and/or Federal Government representatives may deem necessary, there shall be made available to representatives of the City and/or the Federal Government an opportunity to review, inspect or audit all records, documentation, and any other data relating to all matters covered by the Agreement. An annual organization audit shall be submitted to the City 120 days after the end of the Provider's fiscal year. The audit shall be performed in accordance with OMS Circular A-110 Attachment F, Page 9 of 18 - I OKa Circular A-133 or OMB Circular A-128, as applicable. If this Agreement is closed-out prior to the receipt of an audit report, the City reserves the right to recover any disallowed costs identified in an audit after such close-out. SECTION XI: COMPLIANCE WITH LOCAL. STATE , FEDERAL REGULATIONS The Provider agrees to comply with regulations as they may apply to Additionally, the Provider will comply laws and ordinances hereto applicable. all applicable federal program administration. with all state and local SECTION XII: ADDITIONAL CONDITIONS AND COMPENSATION It is expressly understood and agreed by the parties hereto that monies contemplated by this Agreement to be used for compensation originated from grants of federal Community Development Block Grant funds, and must be implemented in full compliance with all of HUD's rules and regulations. It is expressly understood and agreed that in the event of curtailment or non-production of said federal grant funds, that the financial sources necessary to continue to pay the Provider compensation will not be available and that this Agreement will thereby terminate effective as of the time that it is determined that said funds are no longer available. In the event of such determination, the Provider agrees that it will not look to, nor seek to hold liable, the ci ty or any individual member of the City commission thereof personally for the performance of this Agreement and all of the parties hereto shall be released from further liability each to the other under the terms of this Agreement. IN WITNESS WHEREOF. the parties hereto have caused this Agreement to be executed by their duly authorized officials on the day and date first above indicated. TAMPA BAY COMMUNITY DEVELOPMENT CORP. .l'J /'. ~'~/ ~/7Y~ ~ flc' ~ eS1dent v/ /0) do Jt!jl- , , Date ATTEST: /. ~JY/~ /0/3<> i,z.... . . Date Page 10 of 18 I .. Countersigned: I CITY OF CLEARWATER, FLORIDA ATTEST: ----..-- /I - ~~ ---1 ;J. Date Approved as to form & correctness: ~ J.,uL , M.A. Galbral.th . City Attorney Agreement dated 10-1-92 between City of ClearwateFage 11 of 18 and Tampa Bay Community Development Corp. 1 I EOUAL EMPLOYMENT OPPORTUNITY CLAUSE FOR CONTRACTS SUBJECT TO EXECUTIVE ORDER 11235 The applicant hereby agrees that it will incorporate or cause to be incor~orated into any contract for construction work, or modif1cation thereof, as defined in the regulations of the Secretary of Labor at 41 CFR Chapter 60, which is paid for in whole or in part with funds obtained from the Federal Government or borrowed on the credit of the Federal Government pursuant to the grant, contract, loan insurance, or 9uarantee, or undertaken pursuant to any Federal program involv1ng such grant, contract, loan, insurance, or guarantee, the following Equal Opportunity clause: During the performance of this contract, the contractor agrees as follows: (1) (2) (3) (4) (5) The contractor will not discriminate against any emploree or applicant for employment because of race, color, rel1gion, sex, or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated dur1ng employment without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to the following: emplo~ent, upgradinCJ' demotion, or transfer; recruitment or recru1tment advertis1ng; layoff or termination; rates of pay or other forms of com~ensation; and selection of training, including apprenticesh1p. The contractor agrees to post in a conspicuous place, available to employees and applicants for empI orment, notices to be provided setting forth the provision of th1s nondiscrimination clause. The contractor will, in all solicitations or advertisements for employees placed by or behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin. The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representative of the contractor's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. The contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. The contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the administering agency and the Page 12 of 18 : I I Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders. In the event of the contractor's non-compliance with the non- discrimination clauses of this contract or with any of the said rules, regulations, or orders, this contract may be canceled, terminated, or suspended in whole or in part and the contractor may be declared 1neligible for further government contracts or federally assisted construction contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law. The contractor will include the portion of the sentence immediately preceding paragraph (1), and the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the administering agency may direct as a means of enforcing such provisions, 1ncluding sanctions for non-compliance provided, however, that in the event a contractor becomes involved in or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the administering. agency, the contractor may request the United States to enter into such litigation to protect the interest of the united States. The applicant further agrees that it will be bound by the above Equal Opportunity clause with respect to its own employment practices when it participates in federally assisted construction work: provided that, if the applicant so participating is a State or local government, the above Equal Opportunity clause is not applicable to any agency, instrumentality or subdivision of such government which does not participate 1n work on or under the contract. (6) (7) The applicant a9rees that it will assist and cooperate actively with the admin1stering agency and the Secretary of Labor in obtaining the compliance of contractors and subcontractors with the Equal Opportunity clause and the rules, regulations, and relevant orders of the Secretary of Labor, that it will furnish the administering agency and the Secretary of Labor such information as , they may require for the supervision of such compliance, and that it will otherwise assist the administering agency in the discharge of the agency's primary responsibility for securing compliance. The applicant further agrees that it will refrain from entering into any contract or contract modification subject to Executive Order 11246 of September 24, 1965, with a contractor debarred from, or who has not demonstrated eligibility for, government contracts and federally assisted construction contracts pursuant to the Executive Order and will carry out such sanctions and penalties for violation of the equal opportunity clause as may be imposed upon contractors and subcontractors by the administerinq aqency of the Page 13 of 18 . . I I Secretary of Labor pursuant to Par II, Subpart D of the Executive Order. In addition, the applicant agrees that if it fails or refuses to comply with these undertakings, the administering agency may take any or all of the following actions: cancel, terminate, suspend in whole or in part this grant (contract, loan, insurance guarantee); refrain from extending any further assistance to the applicant under the program with respect to which the failure or refund occurred until satisfactory assurance of future compliance has been received from such applicant; and refer the case to the Department of Justice for appropriate legal proceedings. Page 14 of 18 J , ~ SECTION 3 CLAUSE A. The work to be performed under this contract is on a project assisted under a program providing direct Federal financial assistance from the Department of Housing and Urban Development and is subject to the requirements of section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u. section 3 requires that to the greatest extent feasible, opportunities for training and employment be given 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 area of the project. B. The parties to this contract will comply with the provision of said section 3 and the regulations issued pursuant thereto by the Secretary of Housing and Urban Development set forth in 24 CFR 135.20, and all applicable rules and orders of the Department issued thereunder prior to the execution of this contract. The parties to this contract certify and a9ree that they are under no contractual or other disability wh1ch would prevent them from complying with these requirements. C. The contractor will send to each labor organization or representative of workers with which he has a collective bargaining agreement or other contract or understanding, if any, a notice advising the said labor organization of workers' representative of his 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. D. The contractor will include this section 3 Clause in every subcontract for work in connection with the ~roject and will, at the direction of the applicant for or rec1pient of Federal financial assistance, take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the secretary of Housing and Urban Development, 24 CFR 135.20. The contractor will not subcontract with any subcontractor where it has notice or knowledge that the latter has been found in violation of regulat10ns under 24 CFR 135.20, and will not let any subcontract unless the subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. E. Compliance with the provisions of section 3, the regulations set forth in 24 CFR 135.20, and all applicable rules and orders of the Department issued thereunder prior to the execution of the contract, shall be a condition of the federal financial assistance provided to the ~roject, binding upon the applicant or recipient for such ass1stance, its successors, and assigns. Fa1lure to fulfill these requirements shall subject the applicant or recipient, its contractors and subcontractors, its successors, and assigns to those sanctions specified by the 9rant or loan a9reement or contract throught which Federal ass1stance is prov1ded, and to such sanctions as Page 15 of 18 r I , are specified by 24 CFR 135.20. ACKNOWLEDGEMENT OF ECONOMIC DEVELOPMENT ACTIVITIES If the provider will be usin9 CDBG funds for an Economic Development Activity, the follow1ng federal requirements must be acknowledged: LOW/MODERATB INCOKB JOBS criteria A low/moderate jobs activity is one which creates or retains ~ermanent jobs, at least 51% of which are taken by low/moderate 1ncome persons or considered to be available to low/moderate income persons. In counting jobs created or jobs retained, the following policies apply: 0 0 0 0 0 For iobs 0 converted to full-time Part-time jobs must be equivalents. Only permanent jobs count. TemDorarv jobs may not be included. Regardless of the sources of funding, all permanent jobs created by the activity must be counted. Trickle-down ~obs (jobs indirect Iv created by the assisted activ1ty may not be counted). retained, the following additional criteria apply: There is clear and objective evidence that permanent jobs will be lost without CDBG assistance. Such evidence includes: a notice by the business to affected employees, a public announcement by the business, or relevant financial records. o Retained jobs are considered to involve the employment of low/moderate income persons if 51% of such jobs are known to be held by low /moderate income persons when CDBG assistance is provided. Jobs are considered to be available to low/moderate income persons when both the following conditions are fulfilled: o Special skills that can only be acquired with one or more years of training or work experience, or education beyond high school, are not a pre-requisite to fill such jobs, or else the business nevertheless agrees to hire unqualified persons and train them; and o The Provider ensures that the assisted business adheres to the principles of "first consideration" by: using a Page 16 of 18 I I hiring practice that in all likelihood will result in over 51% of those hired being low/moderate income persons; seriously considering a sufficient number of low/moderate income job applicants to meet this intent; determinin9 that the distance from the job applicant's residence 1S close to the job site or that transportation is available to the job site. RECORDS TO BE MAXNTAXNED Where the low/moderate income benefit is based on job creation, the Provider's files must include the documentation described in either (A) or (B) below: (A) For activities where at least 51% of the jobs will be available to low/moderate income persons, documentation for each assisted business must include: A copy of a written agreement containing: o A commitment by the business that it will make at least 51% of the jobs available to low/moderate income persons and will provide training for any of those jobs requiring special skills or education; and, o A listing by job title of the permanent jobs to be created, indicating which jobs will be available to low/moderate income persons, which jobs require special skills or education, and which jobs are part-time; and, o A description of actions to be taken by the Provider and business to ensure that low/moderate income persons receive "first consideration" for these jobs; and, (B) o A listing, by job title, of permanent jobs filled, and which jobs were available to low/moderate income persons, as well as a description of how "first consideration" was given to such persons for those jobs. The description must include what type of hiring process was used; which low/moderate income persons were interviewed for a particular job and which interviewees were hired. For activities where at least 51% of the jobs will be taken by low/moderate income persons, documentation for each assisted business must include: A copy of a written agreement containing: o A commitment by the business that at least 51% of the jobs, on a full-time equivalent basis, will be taken bv low/moderate income persons and a listing by job title of the permanent jobs created; and, o A listing, by job title, of the permanent jobs filled and which jobs were initially held by low/moderate income persons; and, Page 17 of 18 I I f Information on the size and annual income of the persons' immediate family prior to the low/moderate income person being hired for the job. Where low/moderate income benefit is based on iob retention, the files must include the following documentation: o o Evidence that jobs would be lost without COBG assistance. o A listing, by jOb title, of permanent jobs retained, indicatin<1 which of those jobs are part-time and (if known) wh~ch are held by low/moderate income persons at the time the assistance is provided. o Identification of any retained jobs not already held by low/moderate income persons which are projected to become available to low/moderate income persons through job turnover within two years of the time COBG assistance is Ji>rovided. (Job turnover projections should also be ~ncluded in the record.) o Information on the size and annual income of the low/moderate income persons' immediate family for each retained job claimed to be held by a low/moderate income person. Acceptable documentat~on on job applicant/ employee family income includes anyone of the following: ~ Notice that job applicant/employee is a referral from state, county, or local employment agency or other entity that agrees to refer individuals determined to be low/moderate income according to HUO criteria. (These entities must maintain documentation for city or federal inspection. ) ~ written certification, signed by the job applicant/employee, of family income and size to establish low/moderate income status by showing: the actual income of the family, or a statement that the family income is below COBG low/moderate income requirements. (These certifications must include a statement that they are subject to verification by the local or federal government.) ~ Evidence that job applicant/employee qualifies for assistance under another program with income qualification criteria at least as restrictive as those used by the COBG program, such as referrals from the Job Training partnership Act (JTPA) Program, except for referrals under the JTPA Title III Program for dislocated workers. ADDXTXONAL CONSXDERATXONS The Provider must prepare a "necessary oraDDropriate" determination whenever COBG assistance is provided for a private, for-profit entity carrying out economic development Page 18 of 18 III t.O'" .. . :'C. o-ee",a i",o1eC . t.t.eo. 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