AGREEMENT FOR HOUSING OPPORTUNITIES - FOR LOW TO MODERATE INCOME FAMILIES
AGREEMENT
TillS AGREEMENT is entered into this 1st 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 Pinellas Habitat for Humanity, 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
~~AS, the City haSH entered into an agreement with the Uo S'I)ePartment~fII<?l:!~it1g:~~ Urban
Development for the purpose of conducting tl'le 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 funding for
housing assistance to low to moderate income residents of Clearwater; and
WHEREAS, the City desires to engage the Provider to render certain services in connection therewith:
NOW, THEREFORE, the parties hereto agree as follows:
SECTION I:
SCOPE OF SERVICES
The Provider agrees to housing opportunities in accordance with the projected accomplishments attached and
made a fully binding part of this Agreement, as Appendix 1, as follows:
Funding for housing activities shall be derived from the City's Housing Pool. Funds will be provided to
agency for program delivery fees to develop housing opportunities for low to moderate-income families and
to fund loans made in accordance with program guidelines. As part of developing housing opportunities, the
City may provide funding for new construction, rehabilitation, reconstruction, site improvements,
acquisition of existing homes, acquisition of vacant land, demolition, relocation, project related soft c<t.ls,
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capitalization of project reserves, and on a limited basis, refinancing. These funds will be available on a first
come first serve basis.
SECTION ll:
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 defmed in 24 CFR 570.208,
B. The Provider shall maintain in its f:11e the documentation on which basis it determines that the project
b~D.~fits . low . and. moder(l~~incoIIlepersoIls, 1l11T1orities and residents of ClearW3,ter. ...... ..S1JGl1r~GQ1"cJ.~~hall
include, but not be limited to prof:11es 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-llO, "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.
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.
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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 allliability for any noncompliance on the part of the
Operating Agency.
(1) Notification by HUn to the City that said project is ineligible because of project location,
services provided, or any other reason cited by HUn;
(2) Notification by HUn 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 n01:i.ficatlon-fioi:iiHUb 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-lIO,
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 of race, color, national origin or sex.
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 CPR 570.504 (c), "Program Income" and meet the
definition of program income defined in 24 CPR 570,500 which generally states that program income is
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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) ifnotusoo as statedibove, the provider sruiIl pay t()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
religiono
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.
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 in which the public services are to be
provided. However, minor repairs may made if such repairs are directly related to the public
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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 al11a11I1er which results in the City beiI1~reiInbl.lrs~~illtl!e aIIl~l.1J:lt()rtlJ,e currellt
farriruirket 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 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, HOME INVESTMENT
PARTNERSHIP 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
DIVISION" 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.
2, The "Scope of Services" shall describe the activities to be performed.
R. The Provider shall maintain sufficient records in accordance with 24 CPR 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.
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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 0
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 financed 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 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 locallaws, nothing hereunder is intended to
relieve the provider of its obligation, if any, to require payment of the higher rates.
B. Flood Disaster Protection
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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. Provisionoftlie ltatchAct
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 painto 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
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
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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 104(d) of the Act, and the implementing regulations at 49CFR 24 and 24
~~R 570.606. m. Unless specifically p~nnitted,tl1eIJr()"i~~rsh~!~l1ot call~~_~ither~~l11P<?~~ry or
perifuiiienliilVolillifary 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 104(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 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
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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 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.
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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.
20 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
1h!s_.A..~~lll~J:lt_'w!l1~:f!()yi~~!_~~~l~~giY~J.1J:l()Il1ore than fifteen. O~)daY~iI1\Vl1!~h tQl'~pJ)' jn
writing, appealing the termination prior to final action being taken by the City 0
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:
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.
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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 City's Housing Pool. The Housing Pool may be comprised of funding from the
CDBG, HOME, and SHIP programso There shall be no program income generated through these programs by
the subrecipient.
HOME funds made available through this agreement are provided to the City of Clearwater by the U. S.
Department of Housing and Urban Development. These funds are placed in a Housing Pool for housing
development activities by local housing providers. Access to these funds will be made available on a fIrst come
fIrst serve basis.
Subrecipients may access these funds after their projects have been approved by the City's Housing
Department 0 Prior to approval, all subrecipients must forward to the City a project analysis on each activity
they are requesting funds. Once approved by the City, a project reserve will be prepared for the subrecipient
to use on all eligible project costs.
Each subrecipient must present the City with a form.al pay request once the project reaches the payment
standards identifIed in the project description. Funds may be advanced for the purchase of vacant properties
on a case-by-case basis. Generally payments to subrecipients will be forwarded upon request at the
completion of each project. The City will not be obligated to pay closing costs, taxes, insurance or lot
maintenance on current or prior land purchases,
Allowable payments may include the following: (1) program delivery fees of $800 for downpayment
assistance, (2) 20% of the loan amount with a minimum loan of $5,000for rehabilitation, (3) program
delivery fees of $5,000 for the purchase and rehabilitation of a single family residence for sale to a qualifying
home buyer, (4) program delivery fees of $5,000 for the development of a new housing unit sold to a
qualifying homeowner, (5) program delivery fees of $5,800 for the development of a new unit with
downpayment assistance, (6) the actual cost of property acquisition, (7) the actual cost of downpayment
assistance, (8) the actual cost of rehabilitation, (9) the actual development cost for new construction, and (10)
the related soft costs when evidenced by a properly documented loan fIle, note and mortgage to a qualifying
homebuyer, .
All projects funded through the housing pool must be approved by the City prior to commitment by the agency.
The agency shall certify that program participants meet all applicable program requirements and all homes
rehabilitated or constructed must meet all applicable building and local codes. Funds requested by the agency
must be for actual costs and each request for reimbursement shall include source material for all referenced
requests.
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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.
Ao 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 an as needed
basis in accordance with the Budget and Project Implementation Schedule attached hereto and made a
part hereof ~s App~~~~l,-_J..,i!J-~i!e!!l!J:~!e~n~~:i_I!o\Va!>!~()Illy_",i~ each c2JJ:lPQJ)~!J.!~d.!113:Y}1()!
exceecflli-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 origino 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
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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 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. thee'lent of tl1e(,)peratingf\.~e~c:y' s no~c<:>l!lpl!~c;~_~!tl1. the nondiscr~ti<?l1(;!~l.!~~sn <?.f..tl1J~
contract or with any oIllie-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 of HUD (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.
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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, financial aid, or other benefits provided under the
program or activity 0
(2) Provide any facilities, services, fmancial 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 ()r~~tiyi!y~
(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.
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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
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 VITI of the Civil Rights Act of 1968 (PL 90-
284}as-amendeduarid will administer aIrprogramsanoactivIiies relaiedi6housmg-andcommumtY
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 fmancial
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 CPR 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.
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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 terminated at the City's option
and my 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 REOUlREMENTS
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
r~P?1ii11g,,,,hicbwill consist of~othwrittellreportsand staff discussions on a re.gular basis. The Provider also
assUres prompt and efficient submission of the Iollowing:
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 I s operation. Further, such report shall include
statistical fmdings, 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 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.
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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-110 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 shB1f..1:ranSfer toilie City anyCOBG,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:
ADDffiONAL 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 fmancial 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.
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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.
Bria J. Aungst
Mayor-Commissioner
Continued:
Approved as to form:
PINELLAS HABITAT FOR HUMANITY
BY~
PreS:Lz~ ~
Da.te ( ('3
)
--
ATTEST:
Z!:!::r fvL( ~7
j-c20'0.3
Date
By:
CITY OF CLEARWATER, FLORIDA
&:k.,..--~.~
William B. Horne, II
City Manager
Attest:
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APPENDIX 1
Provider's Program Budget
N/A Housing Pool
Other Funds
.Proposed
Other F~n~illg
Souroes
1
Provider's Program Implementation Schedule
1)N/A Housing
Pool
2)
3)
4)
5)
6)
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APPENDIX 2
ACKNOWLEDGEMENT OF ECONOMIC DEVELOPMENT ACTIVITIES
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
r~sp()~i~l~ for the econoDlic dev~loPID.ent loanprQgt"~pr~lJJ:'esmand fQrI11S,Qlltr~ach'm loauapplications,
underwriting assessment, loan collateral, establishing and conducting the loan review committee, loan closing,
maintaining job creation fIles, 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:
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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 TlieProvider 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 mcome 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,
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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 fmoderateullcomepersons;and,
o Information on the size and annual income of the persons I immediate family prior to the
low/moderate income person being hired for the job.
Where low/moderate income benefIt is based on job 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.)
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~ 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 (ITP 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
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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 defmed in the regulations of the Secretary of Labor at 41 CPR
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:
IJuringtheperfofiliaiice of tills cohtfact;tlieconfractoragreesas 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.
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(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.
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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. 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.
G; 'fhecontractor . will send. to each ...labor organization or representative of workers.with.Whichhehils a
collective bargaining agreement or other contract or understanding, if any, a notice advising the said
labor organization of workers I representative of his commitments under this Section 3 Clause and shall
post copies of the notice in conspicuou~ 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 CPR 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 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 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 financial assistance provided to the project, binding upon the applicant
or recipient for such assistance, its successors, and assigns. Failure to fulfill these requirements shall
subject the applicant or recipient, its contractors and 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.
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