ADMINISTER A FAMILY SELF-SUFFICIENCY PROGRAM
CITY OF CLEARWATER
FISCAL YEAR 2002-2003
SUBRECIPIENT AGREEMENT
THIS AGREEMENT is entered into this 1 st day of October, 2002, by and between the City
of Clearwater, a Florida municipal corporation, having its principal office at 112 South Osceola
Avenue, Clearwater, Florida, hereinafter referred to as the "City", and the Partners in Self
Sufficiency, Inc., 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 fmancial 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 entered into an agreement with the U. S. Department of Housing
and Urban Development for the purpose of conducting the HOME Investment Partnership Program
(HOME) with federal assistance under Title II (42 U.S.c. 12701-12839) of the Cranston-Gonzalez
National Affordable Housing Act of 1990, as amended; and
WHEREAS, the City has entered into an agreement with the State of Florida for the
purpose of conducting the State Housing Initiatives (SHIP) Plan Program with State of Florida
assistance under the William E. Sadowski Housing Act (Chapter 420.907 - .9079 Florida Statutes,
Rule 67-37, Florida Administrative Code) which was signed into law on July 7, 1992; and
WHEREAS, the City has determined through its Consolidated Plan of Objectives and
Projected Use of Funds, which was adopted by the City of Clearwater on June 18, 2002 the
necessity for providing funds to administer a family self-sufficiency program to low to moderate
income residents of Clearwater and provide funding for the acquisition of an office to implement
the self-sufficiency program; and
WHEREAS, the City desires to engage the Provider to render certain servIces ill
connection therewith:
NOW, THEREFORE, the parties hereto agree as follows:
SECTION I:
SCOPE OF SERVICES
The Provider agrees to administer a family self-sufficiency program and purchase real property for
an office in accordance with the projected accomplishments attached and made a fully binding part
of this Agreement, as Appendix 1, as follows:
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Partners in Self Sufficiency will provide low to moderate income families with affordable housing,
long and short term goal planning, case management, job training and educational opportunities and
home ownership training.
The Provider will purchase and renovate real property within the City to implement the self-
sufficiency program.
SECTION II:
CONDITION OF SERVICE
The Provider hereby agrees to the following:
A. The Program shall serve eligible low and moderate-income persons living primarily in
Clearwater. The Provider shall certify that the activities carried out with funds provided
under this Agreement will meet one or more of the CDBG program's National Objectives-
1) benefit low to moderate income persons, 2) aid in the prevention or elimination of slum
and blight, 3) meet community development needs having a particular urgency - as defined
in 24 CFR 570.208.
B. The Provider shall maintain in its file the documentation on which basis it 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.
C. The Provider shall maintain a citizen participation mechanism, 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 Subpart c - Post Award Requirements of the Office of
Management and Budget (OMB) Circular No. A-II0, "Uniform Administrative
Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals
and Other Non-Profit Organizations", incorporated by reference into this Agreement.
E. Costs incurred under this program shall be in compliance with Federal Management
Circular No. A-122, "Cost Principles for Non-Profit Organizations", incorporated by
reference into 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.
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G. No expenditures or obligations shall be incurred for the program prior to approval and
release of funds from the U.S. Department of Housing and Urban Development and/or the
State of Florida. Further, it is expressly understood that in the event no funds are released
from the U.S. Department of Housing and Urban Development and/or the State of Florida
in connection with this Program, then the City is not liable for any claims under this
contract.
H. The Operating Agency hereby certifies that, in the implementation of projects funded by
this Agreement and in all of its other operations, it will comply with all requirements of
Section 504 of the Rehabilitation Act of 1973 (29 USC 794 ) (and the implementing
regulations at 24 CFR 8), the Americans with Disabilities Act of 1990 (pL 101-336), and
all state and local laws requiring physical and program accessibility to people with
disabilities, and agrees to defend, hold harmless and indemnify the City from and against
any and all liability for any noncompliance on the part of the Operating Agency.
(1) Notification by HUD to the City that said project is ineligible because of project
location, services provided, or any other reason cited by HUD;
(2) Notification by HUD to the City that said project is deficient and that continued
support of the project is not providing an adequate level of services to low
income and minority people; or
(3) Written notification from HUD to the City that the program funds made
available to the City are being curtailed, withdrawn, or otherwise restricted.
(4) Fails to file required reports or meet project progress or completion deadlines;
(5) Materially fails to comply with any provision of this Agreement (which may
result in suspension or termination in accordance with 24 CRF 85.43 or OMB
Circular A-II0, Attachment L);
(6) Expends funds under this Agreement for ineligible activities, services or items;
(7) Implements the project prior to notification from the City that the federal
environmental review process has been completed;
(8) Violates Labor Standards requirements; or
(9) Fails to comply with written notice from the City of substandard performance
under the terms of this Agreement.
I. 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 ofrace, color, national origin or sex.
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J. 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.
K. The Provider shall comply with the provisions of 24 CFR 570.504 (c), "Program Income"
and meet the definition of program income defined in 24 CFR 570.500 which generally
states that program income is gross income received by the recipient or a subrecipient
directly generated from the use of CDBG funds. All program income generated through the
use of Community Development Block Grant, HOME Investment Partnership Program, and
State Housing Initiatives Partnership programs shall be returned to the City within 45 days
after receipt by the subrecipient. 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.
L. The Provider shall transfer to the City any CDBG funds on hand at the time of expiration
and, any accounts receivable attributable to the use of CDBG funds. All real property
acquired or improved in whole or in part with CDBG funds in excess of $25,000 shall be:
(1) used to meet one of the national objectives in Section 570.208 until five years after
expiration of the agreement, or fro such longer period of time as determined to be
appropriate by the City; or
(2) if not used as stated above, the provider shall pay to City an amount equal to the
current market value of the property less any portion of the value attributable to
expenditures on non-CDBG funds for the acquisition of or improvement to, the
property. The payment shall be considered program income.
M. 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.
N. The Provider shall comply with First Amendment Church/State principles, as follows:
1. It will not discriminate against any employee or applicant for employment on the
basis of religion and will not limit employment or give preference in employment to
persons on the basis of religion.
2. It will not discriminate against any person applying for public services on the basis
of religion and will not limit such services or give preference to persons on the 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 in the provision of such public services.
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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 01: 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 in which the
public services are to be provided. However, minor 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 CDBG expenditure for the public services.
O. The Provider shall transfer to the City upon expiration of this Agreement, any CDBG,
HOME and/or SHIP funds on hand at the time of expiration and any accounts receivable
attributable to the use of CDBG, HOME and/or SHIP 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 CDBG 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 CDBG Regulations. Part 570.208 until five years or such
longer period of time as determined appropriate by the City 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-CDBG funds for acquisition of, or improvement
to, the property. Such reimbursement is required.
P. The Provider agrees thatwhen sponsoring a project fillanced 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, HOME INVESTMENT
P ARTNERSIDP PROGRAM, AND STATE HOUSING INITIATIVES PROGRAM
In written materials, the words "CITY OF CLEARWATER COMMUNITY
DEVELOPMENT BLOCK GRANT FUNDS, HOME INVESTMENT
PARTNERSIDP PROGRAM FUNDS, AND STATE HOUSING INITIATIVES
PROGRAM FUNDS ADMINISTERED BY THE HOUSING DMSION" shall appear
in the same size letters or type as the name of the Provider.
Q. 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.
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2. The "Scope of Services" shall describe the activities to be performed.
R. 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
Development Block Grant Program and all applicable laws and regulations.
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 properly reflect all
revenues and expenditures of funds provided directly or indirectly by this
Agreement, including matching funds and program income.
2. Time sheets for split-funded employees who work on more than one activity, in
order to record the CDBG, HOME, and/or SHIP activity delivery cost by project and
the non-CDBG related charges.
3. How the Statutory National Objective(s) and the eligibility requirement(s) under
which funding have been received, have been met. These also include special
requirements such as necessary and appropriate determinations, income
certifications, and written agreements with beneficiaries, where applicable.
S. 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 following exception:
if any litigation, claim or audit is started before the expiration date of the three year period,
the records will be maintained until all litigation, 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.
OTHER CONTRACTUAL PROVISIONS
A. Labor Standards
Except with respect to the rehabilitation of residential property designed for residential
use for less than eight households, the provider and all subcontractors engaged in
contracts in excess of $2,000 for the construction, completion, rehabilitation, or repair of
any building or work fillanced in whole or in part with assistance provided under this
Agreement are subject to the federal labor standards provisions which govern the
payment of wages and the ratio of apprentices and trainees to journey workers. Under the
terms of the Davis-Bacon Act, as amended, the provider is required to pay all laborers
and mechanics employed on construction work wages at rates not less than those
prevailing on similar construction in the locality as determined by the Secretary of Labor,
and shall pay overtime compensation in accordance with and subject to the provisions of
the contract Work Hours and Safety Standards Act (40 USC 327-332), and the provider
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shall comply with all regulations issued pursuant to these Acts and with other applicable
Federal laws and regulations pertaining to labor standards, including the Copeland "Anti-
Kickback" Act. Provided, that if wage rates are higher than those required under the
regulations are imposed by State or local laws, nothing hereunder is intended to relieve
the provider of its obligation, if any, to require payment of the higher rates.
B. Flood Disaster Protection
This Agreement is subject to the requirements of the Flood Disaster Protection Act of
1973 (PL 93-234). Use of any assistance provided under this Agreement for acquisition or
construction in an area identified as having special flood hazards shall be subject to the
mandatory purchase of flood insurance in accordance with the requirements of Section
102(a) of said Act.
C. Clean Air and Federal Water Pollution Control Act (Applicable to Contracts and
Subcontracts Which Exceed $100,000
The provider shall comply with and require each subcontractor to comply with all
applicable standards of the Clean Air Act of 1970 (42 USC 1857 et seq.) as amended, the
Clean Air Act of 1990, the Federal Water Pollution Control Act (33 USC 1251 et seq.), as
amended, and the regulations of the Environmental Protection Agency with respect
thereto, at 40 CFR Part 15, as amended from time to time.
D. Provision of the Hatch Act
Neither the provider program nor the funds provided therefore, nor the personnel
employed in the administration of the program shall be in any way or to any extent
engaged in the conduct of political activities in contravention of Chapter 15 of Title 5,
United States Code.
E. Lead-Based Paint
Any grants or loans made by the provider for the rehabilitation of residential structures
with assistance provided under this Agreement shall be made subject to the provisions for
the elimination of lead-based paint hazards under 24 CFR Part 35. Operating Agency
will comply with the requirements of 24 CFR 570.608 for notification, inspection, testing,
and abatement procedures concerning lead-based paint. Such regulations require that all
owners, prospective owners, and tenants of properties constructed prior to 1978 be
properly notified that such properties may contain lead-based paint Such notification shall
point out the hazards of lead-based paint and explain the symptoms, treatment, and
precautions that should be taken when dealing with lead-based paint poisoning.
F. Special Assessments
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Provider shall not attempt to recover any capital costs of public improvements assisted in
whole or in part with funds provided under Section 106 of the Act or with amounts
resulting from a guarantee under Section 108 of the Act by assessing any amount against
properties owned and occupied by persons of low and moderate income, including any
fee charged or assessment made as condition of obtaining access to such public
improvements, unless (1) funds received under Section 106 of the Act are used to pay the
proportion of such fee or assessment that relates to the capital costs of such public
improvements that are financed from revenue sources other than under Title 1 of the Act,
or (2) for purposes of assessing any amount against properties owned and occupied by
persons of moderate income, the grantee certifies to the Secretary of HUD that lacks
sufficient funds received under Section 106 of the Act to comply with the requirements of
subparagraph (1).
G. Acquisition, Rehabilitation, and Demolition of Real Property and Displacement of
Persons and Businesses
Provider shall comply with the "City of Clearwater, Housing Division, Community
Development Block Grant Program Plan for Minimizing the Displacement of Persons As
a Result of Community Development Block Grant Funded Activities" and "City of
Clearwater, Housing Division, Community Development Block Grant Program
Residential Anti-displacement and Relocation Assistance Plan." Provider shall conduct
any acquisition, rehabilitation, or demolition of real property, and any negotiations for
acquisition, rehabilitation or demolition of real property in compliance with the Uniform
Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended,
Section 1 04( d) of the Act, and the implementing regulations at 49CFR 24 and 24 CFR
570.606. Unless specifically permitted, the provider shall not cause either temporary or
permanent involuntary displacement of persons or businesses. If the provider causes the
involuntary temporary or permanent displacement of any person or business as a result of
Community Development Block Grant activities, it shall comply with the City's "Plan to
Assist Persons Actually Displaced by Community Development Block Grant Activities,"
and Operating Agency shall provide all notices, advisory assistance, relocation benefits,
and replacement dwelling units as required by the Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970, as amended, Section 1 04( d) of the Act,
and the implementing regulations at 49 CFR 24 and 24 CFR 570.606. The Provider
hereby agrees to defend, to pay, and to indemnify the City from and against, any and all
claims and liabilities for relocation benefits or the provision of replacement dwelling
units required by federal statutes and regulations in connection with activities undertaken
pursuant to this Agreement.
H. Lobbing Restrictions
Provider certifies that, to the best of its knowledge and belief:
No Federal Appropriated funds have been paid or will be paid, by or on behalf of it, to
any person for influencing 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
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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;
If any funds other than Federal appropriated funds have been paid or will be paid to any
person for influencing or attempting to influence an officer or employee of any agency, a
Member of Congress, an officer or employee of Congress, or an employee of a Member
of Congress, in connection with this Federal contract, grant loan or cooperative
agreement, it will complete and submit Standard Form-LLL, "Disclosure Form to Report
Lobbying," in accordance with its instructions; and
It will require that the language of this paragraph L be included in the award documents
for all sub-awards at all tiers (including subcontracts, sub-grants, and contracts under
grants, loans and cooperative agreements) and that all subrecipients shall certify and
disclose accordingly.
This certification is a material representation of fact upon which reliance was placed
when this transaction was made or entered into. Submission of this certification is a
prerequisite for making or entering into this transaction imposed by Section 1352 Title
31, United States Code. Any person who fails to file the required certification shall be
subject to a civil penalty of not less than $10,000 and not more than $100,000 for each
such failure.
SECTION IV:
TERM OF AGREEMENT
This Agreement shall be deemed effective upon approval and release of funds by the U.S.
Department of Housing and Urban Development and/or the State of Florida and being duly
executed by both parties, whichever is later.
This project shall become operational as of October 1, 2002, and shall continue through September
30,2003.
SECTION V:
TERMINATION
The City and the Provider agree:
A. This Agreement may be terminated by either party hereto by written notice of the other
party of such intent to terminate at least thirty (30) days prior to the effective date of such
termination.
B. This Agreement may be terminated in whole or in part, for convenience, when both parties
agree upon the termination conditions. A written notification 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 a partial
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termination, the City determines that the remaining 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 writing to any concerns raised by the City, including
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 subrecipient, and applicable HUD rules and
regulations.
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 foUIid for
termination of this Agreement. The Provider shall be given no more than fifteen
(15) days in which to reply in writing, appealing the termination 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 and/or the State of
Florida, 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 reasonably avoidable are allowable if:
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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 VI:
AMENDMENTS
Any alterations, variations, modifications or waivers of this Agreement shall only be. valid when
they have been reduced in writing and duly signed by both parties. Any changes, which do not
substantially change the scope of the project and/or the Project Implementation Schedule or
increase, the total amount payable under this 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 City officially, in writing, approves such expenditure by executing a
written modification to the original Agreement.
SECTION VII:
METHOD OF PAYMENT
It is expressly understood and agreed that the total compensation to be paid hereunder for actual
expenditures incurred shall be reserved in the amount of TWENTY FIVE THOUSAND
DOLLARS ($25,000) for operational support to administer the Family Self-Sufficiency Program to
low to moderate income residents of Clearwater and ONE HUNDRED AND TEN THOUSAND
DOLLARS ($110,000) to acquire and rehabilitate real property (costs may include closing and
other necessary costs for acquisition) to implement the self-sufficiency program.
The funds must be expended in accordance with the terms and conditions of the Agreement. Funds
set aside for this agency may increase or decrease, subject to production performance. Production
will be reviewed quarterly and will be based upon the goals the Provider established in their
program implementation schedule. Any remaining balance of funds shall revert to the City or other
approved provider(s). 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 (1Oth) 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.
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B. The City agrees to pay the Provider for expenditures incurred under this Agreement on an as
needed 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 aggregate fifteen percent (15%) of each line
item without prior written approval of the City. All changes amounting to more than fifteen
percent (15%) require prior written approval.
SECTION VIII:
EQUAL EMPLOYMENT OPPORTUNITY
During the performance of this contract, the Operating Agency agrees as follows:
(1) The Operating Agency shall not discriminate against any employee or applicant for
employment because of race, color creed, religion, sex age, handicap, disability,
sexual orientation, ancestry, national origin, marital status, familial status, or any
other basis prohibited by applicable law. The Operating Agency shall take affirmative
action to ensure that applicants are employed and that employees are treated during
employment without regard to their race, color, creed, religion, sex age, handicap,
disability, sexual orientation, ancestry, or national origin. Such action shall include,
but not be limited to the following: Employment, upgrading, demotion or transfer,
recruitment or recruitment advertising, layoff or termination, rates of payor other
forms of compensation, and selection for training including apprenticeship. The
Operating Agency agrees to post in conspicuous places, available to employees and
applicants for employment, notices to be provided setting forth the provisions of this
nondiscrimination clause.
(2) The Operating Agency will, in all solicitations or advertisements for employees
placed by or on behalf of the operating Agency, state that all qualified applicants will
receive consideration for employment without regard to race, color creed religion, sex
age, handicap, disability, sexual orientation, ancestry, national origin, marital status,
or any other basis prohibited by applicable law.
(3) The Operating Agency will send to each labor union or representative of workers with
which is has a collective bargaining agreement or other contract of understanding, a
notice to be provided advising the said labor union or workers; representatives of the
Operating Agency's commitments under this section, and shall post copies of the
notice in conspicuous places available to employees and applicants for employment.
(4) The Operating Agency will comply\ with all provisions of Executive Order 11246,
Equal Employment opportunity, of September 24, 1965, as amended by Executive
Orders 11373 and 12086, copies of which are on file and available at the City and of
the rules regulations, and relevant orders of the Secretary of Labor.
(5) The Operating Agency will furnish all information and reports required by Executive
Order 11246 of September 24, 1965, as amended, and by rules, regulations, and
orders of the Secretary of Labor, or pursuant thereto, and will permit access to its
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books, records, and accounts by HUD and the Secretary of Labor for purposes of
investigation to ascertain compliance with such rules, regulations, and orders.
(6) In the event of the Operating Agency's noncompliance with the nondiscrimination
clauses of this contract or with any of the said rules, regulations, or orders, this
contract may be cancelled, terminated, or suspended in whole or in part and the
Operating Agency may be declared ineligible for further Government contracts or
federally assisted construction contracts in accordance with procedures authorized in
Executive Order 11246 of September 24, 1965, as amended, and such other sanctions
may be imposed and remedies invoked as provided in Executive order 11246 of
September 24, 1965, as amended, or as otherwise provided by law.
(7) The Operating Agency 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, as amended, so that such provisions will be binding upon each subcontractor or
vendor. The Operating Agency will take such action with respect to any subcontract
or purchase order as HUD may direct as a means of enforcing such provisions,
including sanctions for noncompliance; provided, however, that in the event an
Operating Agency becomes involved in, or is threatened with, litigation with a
subcontractor or vendor as a result of such direction by HUD, the Operating Agency
may request the United States to enter into such litigation to protect the interests of
the United States.
Equal Opportunity in Participation
A. Development Act of 1974, and in conformance with City policy and all requirements
imposed by or pursuant to the Regulations ofHUD (24 CFR Part 570.601 and 570.602)
issued pursuant to Section 109, no person in the United States shall on the ground of race,
color creed, religion, sex, age, handicap, disability, sexual orientation, ancestry national
origin, marital status, familial status, or any other basis prohibited by applicable law be
excluded from participation in, be denied the benefits of, or be subjected to
discrimination under, and program or activity funded in whole or in part with Community
Development Block Grant Program funds.
B. Specific (not exclusive) Discriminatory Actions Prohibited:
The Provider may not directly or through contractual or other arrangements, on the
ground of race, color, creed, religion, sexual orientation, ancestry, national origin, marital
status, familial status, age handicap, disability, sex or any other basis prohibited by
applicable law:
(1) Deny any facilities, services, fmancial aid, or other benefits provided
under the program or activity.
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(2) Provide any facilities, services, financial aid, or other benefits, which are
different or are provided in a different form from that provided to others
under the program or activity.
(3) Subject to segregated or separate treatment in any facility, or in any mater
or process related to receipt of any service or benefit under the program or
activity.
(4) Restrict in any way access to, or the enjoyment of any advantage or
privilege enjoyed by others in connection with facilities, services, financial
aid or other benefits under the program or activity.
(5) Treat an individual differently from others in determining whether the
individual satisfies any admission, enrollment, eligibility, membership, or
other requirements or condition which the individual must meet in order to
be provided any facilities, services, or other benefit provided under the
program or activity.
(6) Deny any person with the legal right to work an opportunity to participate
in a program or activity as an employee.
C. Business and Employment Opportunities for Lower Income Residents, Women-Owned
Business Enterprises, and Minority-Owned Business Enterprises
The Provider shall conform with the rules and regulations set forth under Section 3 of the
Housing and Urban Development Act of 1968, (12 USC 1701u), as amended, and the
HUD regulations issued pursuant thereto at 24 CFR Part 135. This Act 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. In all solicitations for bids, the contractor
must, before signing the contract, provide a preliminary statement of the work force,
needs and plans for possible training and employment of lower income persons. When an
Operating Agency utilizes the bidding procedure to let a bid, the invitation or solicitation
for bids shall advise prospective contractors of the requirements of Section 3 of the
Housing and Urban Development Act of 1968, as amended, and the clause shall be
inserted as a component part of any contract or subcontract. Please see Appendix 4.
If an Operating Agency solicits or requests an invitation for bids, every effort feasible will
be made to contact minority-owned and women-owned business enterprises for a
response to the solicitation or invitation for bidders.
D. Nondiscrimination in Federally Assisted Programs
14
The Provider shall comply with Title VI of the Civil Rights Act of 1964 (PL 88-352,
42USC 2000d et seq.) and the Fair Housing Act (42 USC 3601-20). In accordance with
City policy and Title VI of the Civil Rights Act of 1964(PL 88-352), in the sale, lease of
other transfer of land acquired, leased or improved with assistance provided under this
Agreement, the deed or lease for such transfer shall contain a covenant prohibiting
discrimination upon the basis of race, color, creed, religion, sex handicap, disability,
sexual orientation, ancestry, national origin, marital status, or familiar status, in the sale,
lease or rental, or in the use or occupancy of such land or any improvements erected or to
be erected thereon. The Provider will comply with Title VIII of the Civil Rights Act of
1968 (pL 90-284) as amended and will administer all programs and activities related to
housing and community development in a manner to affirmatively further fair housing.
SECTION IX:
CONFLICT OF INTEREST
The Provider covenants that no person, under its employ who presently exercises any functions or
responsibilities in connection with Community Development Block Grant Program, HOME
Investment Partnership Program and State Housing Initiatives Program 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 of24 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 is covered by the above
provisions. This disclosure shall occur immediately upon knowledge of such possible conflict. The
City will then render an opinion, which shall be binding on both parties.
SECTION X:
INDEMNIFICATION AND INSURANCE
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 shall pay all claims and
losses of any nature whatsoever in connection therewith and shall defend or pay to defend all suits
brought against the City, when requested, and shall pay all costs and judgments which may be
issued thereon.
Automobile and vehicle coverage shall be required when the use of automobiles and other vehicles
are involved in any way in the performance of the Agreement.
The Provider shall submit to the City an ORIGINAL Certificate of Insurance.
All liability insurance coverage shall be approved by the City's Risk Management Office prior to
the release of any funds under this Agreement. Generally, the amount of coverage necessary would
be at a minimum of $300,000.
Further, in the event evidence of the required insurance is not forwarded to the Risk Management
Office within thirty (30) days after the execution of this Agreement, this Agreement may be
15
terminated at the City's option and any payments then due may be permanently withheld by the City
and the City will have no further obligation under this contract or any subrecipient contract.
SECTION XI:
REPORTING AND EVALUATION REQUIREMENTS
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:
A. Monthlv Reports are due no later than the tenth (10th) 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. Final Evaluation. Within twenty (20) days of contract completion, a fInal report
documenting how the Statutory National Objective and the eligibility requirements were
met, must be submitted by the Provider to the City's Housing Division for review and
approval. The contents of it 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 fmal 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 Reporting Requirements may be required by the City in the event of program changes,
need for additional information or documentation and/or legislation amendments. The Provider
shall be informed, in writing, if any changes become necessary.
Reports and/or requested documentation not received by the due date, shall be considered
delinquent, and may be considered by the City as sufficient cause to suspend CDBG, HOME, and
SHIP payments to the Provider.
16
SECTION XII:
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 submitted audit shall include any management letters and agency responses to the
management letters. The audit shall be performed in accordance with OMB Circular A-II0
Attachment F, OMB 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 XIII:
REVERSION OF ASSETS
The Provider shall transfer to the City any CDBG, HOME or SHIP funds on hand (including
program income) or any accounts receivable attributable to the use of CDBG, HOME or SHIP
funds should the agency close its doors. The Provider shall also transfer to the City any real
property in the Provider's control that was acquired or improved in whole or in part of with CDBG,
HOME or SHIP funds, unless it is used to (1) meet one of the national objectives in Section
570.208 until five years after the expiration of this agreement, or for such longer period of time as
determined to be appropriate by the recipient; or (2) if not used for eligible activity, the Provider
shall pay to the City an amount equal to the current to the current market value of the property less
any portion of the value attributable to expenditures of non-CDBG, HOME or SHIP funds for the
acquisition of or improvement to, the property.
SECTION XIV: COMPLIANCE WITH LOCAL. STATE & FEDERAL REGULATIONS
The Provider agrees to comply with all applicable federal regulations as they may apply to program
administration. Additionally, the Provider will comply with all state and local laws and ordinances
hereto applicable.
SECTION XV:
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, HOME Investment Partnership Program Funds and State Housing Initiatives
Partnership Funds, and must be implemented in full compliance with all of HUD's and the State of
Florida 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.
17
In the event of such determination, the Provider agrees that it will not look to, nor seek to hold
liable, the City 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.
PARTNERS IN SELF SUFFICIENCY,
INC.
By ~r~
President
I Of ~ d-.-f 0 ~
Date
ATTEST:
4- f\..~Jf~
SCClChuy ~ ;t:c. '"'" nv,- i), r",C. ~-
Date
10/J-'-((;:'1-
I
By:
CITY OF CLEARWATER,
FLORIDA
~g. f4-.~-n:
William B. Home, II
City Manager
Countersigned:
ApPI:oved as to form:
Attest:
'~
~
. .
,,'(0' .... .
M/ C!n.:thia-r:. po . :au ..
V"" - CIty.~lerk :: ~ .. .
18
19
APPENDIX 1 - PROVIDER'S Budget - Public Services
Salaries & Fringe $25,000 $39,905 $176,088 Pinellas County Social $265,993.
action HUD-FSS
Administrative fee PSS
Trainings
Client Services 13,110 32,187 In-Kind:$22,187 $ 45,297.
(Includes life skills
training Advantage Training
homeownership Systems; Pinellas
training, digital divide Opportunity Council;
trainings, money Pinellas County
mngmnt. training & Extension Service;
financial assistance CDG-the Homebuyers
funds,clothing, library Club Community
materials Donations
Grants: $10,000 Board
Partners Donations
Operating 10,000 30,736 In-Kind: $3,300 40,736.
Alison Painter, CPA;
Clearwater Housing
Authority; Clearwater
Housing Authority,
Pinellas County
Community
Foundation, Training,
Income, Donations
Choice $708,046 IN-KIND: $708,046 $708,046
Vouchers/Section 8
certificates and Clearwater Housing
earned escrow
accounts
$25,000.00
$63,015.
$947,057.
$1,060,072.00
20
Public Services
Provider's Program Implementation Schedule
,~, .. Mar i.... ....~ ..... . Jun....... i.-S;- .~~~.. ...
Planned Oct Nov IJan Feb ./"\F'L i liar> i. Sep
Implementation I . ..... I I............
.. '..
9tepS ..................... I ....... I....... ........ ... ........ .
.... .. .............. I.. ..................... ................ ....... .... .... ........ ..........
1 )Applications 10 10 10 10 10 10 10 10 10 10 10 10
2)Case 150 150 150 150 150 150 150 150 150 150 150 150
Management
3)Financial 10 10 10 10 10 10 10 10 10 10 10 10
Assistance
4)Digital Divide 10 10 10 10
Program
5)Homeownership 175 175 175 175 175 175 175 175 175 175 175 175
Services (including
Homeless)
6)Life Skills Training 20 20 20 20
21
APPENDIX 1
Provider's Program Budget
PUBLIC FACILITIES
ArnoLll'lt ........... .< ..... i.. ... .. ...
Category Other Funds Other Funding Total
........ Requested. ... . .... .. Sources .. ...
Proposed Committed ... ......................
. . .....
Realtor Services $ 4,500 Colliers Arnold $ 4,500.
INKIND
Appraisal 1,500 PSS Building 1,500
Reserve Fund
Building Inspection 250. 250
Attorney Fees 439. PSS Building 589.
Reserve Fund
INKIND
150. In-kind provided by
the law firm of Alford,
Barber & Mariani
Purchase Price $100,000 $10,000 Clearwater CDBG $110,000.
PSS Building
Reserve Fund
Closing Costs 10,000 PSS Building $ 10,000
Reserve Fund
Renovations! 10,000 Clearwater CDBG 10,000
Furnishings
.... .....i..Total $110,000.00 $26,839.00 $136,839.00
... ....--.. .
22
APPENDIX 1
PUBLIC FACILITES IMPLEMENTATION SCHEDULE
.
Planned Implementation
_.
i ....<.:i:...
<ii ...
1 )Iocate Property
( Nov.... Oed
c
t
Apr
Jan
Feb
Mar
x
2)Contract for Appraisal
x
3)Attomey Review of
purchase contract
x
4)Sign purchase contract
x
5)TITLE - Seller to X
provide 60 days PRIOR
to closing
6)Survey Property-Buyer X
has 30 days after receipt
of title to obtain survey
and make any objections
7)lnvestigation Period- X
Begins 1/1 to 3-31,(121
days from Effect. Date
1/1/03
8)Financing Contingency X
to begin 1/1/03-ends
3/31/03. (121 days from
effect. Date 1-1-03
9)Closing(151 days from X
the effect. Date or at the
earliest time after
receiving grant
notification
Prepare Move in After X
closing
Move In X
23
May
Jun JlJl..[iA..,;" Sep
.....:iii.. .....I..i..
.......i............ .......:.....:.....:...1..1..
APPENDIX 2
ACKNOWLEDGEMENT OF ECONOMIC DEVELOPMENT ACTMTIES
If the Provider will be using CDBG funds for an Economic Development Activity, the
following federal requirements must be acknowledged:
The provider will be responsible for the day-to-day administration of the Clearwater
Neighborhood Housing Service Economic Development Loan Program. The Provider will
administer all tasks in connection with the aforesaid program in compliance with all applicable
Federal, state, and local rules and regulations governing these funds, and in a manner
satisfactory to the City. The Provider with limited input from the City shall be responsible for
the economic development loan program procedures and forms, outreach, loan applications,
underwriting assessment, loan collateral, establishing and conducting the loan review committee,
loan closing, maintaining job creation f1les, monitoring for job creation/retention, and
maintenance of records.
The City will provide loan servicing and loan portfolio management. In addition, the City will sit
on the loan review committee, monitor the Provider for compliance and provide technical
assistance.
LOW/MODERATE INCOME JOBS
Criteria
A low/moderate jobs activity is one which creates or retains permanent jobs, at least 51 % of
which are taken by low/moderate income persons or considered to be available to low/moderate
income persons.
In counting lobs created or lobs retained, the following policies apply:
o Part-time jobs must be converted to full-time equivalents.
o Only permanent jobs count.
o Temporary jobs may not be included.
o Regardless of the sources of funding, all permanent jobs created by the activity
must be counted.
o Trickle-down jobs (jobs indirectly created by the assisted activity may not be
counted).
For lobs retained, the following additional criteria apply:
24
o 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 fmancial 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 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;
determining that the distance from the job applicant's residence is close to the job
site or that transportation is available to the job site.
RECORDS TO BE MAINTAINED
Where the low/moderate income benefit is based on lob 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,
25
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.
(B) 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 by 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,
o 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 lob retention, the fIles must include the following
documentation:
o Evidence that jobs would be lost without CDBG assistance.
o A listing, by job title, of permanent jobs retained, indicating which of those jobs are part-time
and (if known) which 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 CDBG assistance is provided. (Job turnover projections should also be
included 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
documentation 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 HUD 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 CDBG low/moderate income requirements. (These certifications
must include a statement that they are subject to verification by the . local or federal government.)
26
,1:,;,'1 I
~ Evidence that job applicant/employee qualifies for assistance under another program with income
qualification criteria at least as restrictive as those used by the CDBG program, such as referrals
from the Job Training Partnership Act (JTP A) Program, except for referrals under the JTP A
Title ill Program for dislocated workers.
ADDITIONAL CONSIDERATIONS
The Provider must prepare a "necessary or appropriate" determination whenever CDBG assistance is provided
for a private, for-profit entity carrying out economic development
27
APPENDIX 4
EOUAL EMPLOYMENT OPPORTUNITY CLAUSE
FOR CONTRACTS SUBJECT TO EXECUTIVE ORDER 11235
The applicant hereby agrees that it will incorporate or cause to be incorporated into any contract for
construction work, or modification thereof, as defilled 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 guarantee,
or undertaken pursuant to any Federal program involving such grant, contract, loan, insurance, or guarantee,
the following Equal Opportunity clause:
During the performance of this contract, the contractor agrees as follows:
(1) The contractor will not discriminate against any employee or applicant for employment because of race,
color, religion, sex, or national origin. The contractor will take affirmative action to ensure that
applicants are employed, and that employees are treated during employment without regard to their race,
color, religion, sex, or national origin. Such action shall include, but not be limited to the following:
employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or
termination; rates of payor other forms of compensation; and selection of training, including
apprenticeship. The contractor agrees to post in a conspicuous place, available to employees and
applicants for employment, notices to be provided setting forth the provision of this nondiscrimination
clause.
(2) 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.
(3) 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.
(4) 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.
(5) 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 Secretary of
Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders.
28
;!~-, ~,
(6) 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 ineligible 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.
(7) The contractor will include the portion of the sentence immediately preceding paragraph (1), and the
provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by
rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order
11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or
vendor. The contractor will take such action with respect to any subcontract or purchase order as the
administering agency may direct as a means of enforcing such provisions, including 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 in work on or under the
contract.
The applicant agrees that it will assist and cooperate actively with the administering 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 administering agency of the 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.
29
SECTION 3 CLAUSE
A. The work to be performed under this contract is on a project assisted under a program providing direct
Federal fmancial 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. 170lu. 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 CPR 135.20, and
all applicable rules and orders of the Department issued there under prior to the execution of this
contract. The parties to this contract certify and agree that they are under no contractual or . other
disability which would prevent them from complying with these requirements.
C. The contractor will 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
project and will, at the direction of the applicant for or recipient of Federal fmancial 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 regulations under 24 CPR 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 CPR 135.20, and all
applicable rules and orders of the Department issued hereunder prior to the execution of the contract,
shall be a condition of the federal fmancial assistance provided to the project, binding upon the applicant
or recipient for such assistance, its successors, and assigns. Failure to fulfill these requirements shall
subject the applicant or recipient, its contractors and subcontractors, its successors, and assigns to those
sanctions specified by the grant or loan agreement or contract through which Federal assistance is
provided, and to such sanctions as are specified by 24 CPR 135.20.
30