SUBRECIPIENT AGREEMENT FY 2011-2012 - HOUSING POOL ACTIVITIESCITY OF CLEARWATER, FLORIDA
AND
LARGO AREA HOUSING DEVELOPMENT CORP
FY2011-2012
SUSRECIPIENT AGREEMENT
(Housing Paal Actzvzties)
THIS SUBRECIPIENT AGREEMENT as entered into on this lst day of Octob�r 2Q11, by and between
the City of Clearwater, a Flarida municipal corporation, having its principal office at 112 South Osceola
Avenue, Clearwater, Florida, hereinafter refened to as the "City", and the Largo Area Housing
Development Corporation, hereinafter referred ta as the "Provider" or "Subrecipient", whose principal
address is: 2139 N.E. Coachman Road, Clearwater, FL 33765.
WITNESSETH:
WHEREAS, the City has entered into an agreement with the U.S. Department of Housing and
Urban Development (HCTD) far the purpose of conducting a Housing and Cammunity Development
Program with federal financial assistance under Title I of the Housing and Community Development Act of
1974, as amended, hereinafter called "Act" (42 U.S.C. 5301 et seq.); and the Cranston-Gonzalez National
Affordable Hausing Act af 1990 (42 U.S.C. 12701 et seq.); and
WHEREAS, the City has ent�red inta an agreement with the U. S. Department of Housing and
Urban Developrnent for the purpose of conducting the Community Development Block Grant (CDBG) (24
(CFR 5"10) and the HOME Investment Partnership (HOME) Program (�42 CFR 92) with federal assistance
under Title II of the Cranston-Gonzalez National Affordable Housing Act �f 1990, as amended (42 U.S.C.
12701-12$39); and
WHEREAS, the City has entered into an agreement with the State af Florida for the purpose of
conducting th� Stats Housing Initiatives Partnership (SHIP) Program with Stat� af Flarida assistance under
the William E. Sadowski Hausing Act (Section 420.907 - 420.9079, Florida Statutes, and Rule 67-37,
Florida Administrative Code (�'AC)) which was signed into law �n July 7, 1992; and
WHEREAS, the City has deternlined through its Fiscal Year 2011-2016 Consalidated Plan and
FY2011-2012 Consolidated Action Plan, which was adopted on July 21, 2011, the necessity for providing
affardable housing opportunities and housing education and counseling services to very low to moderate-
income households residing in Clearwater;
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 ta pravide City funds for the provision of educational, down payment assistance and
closing costs assistance to households wha aze very-low to maderate incorne in accordance with the City's
"Hausing Pool — Undervvriting Guidelines, Folices and Procedures", as amended, a11 in accordance with the
projected accomplishments attached and made a fixlly binding part of this Agreement, as Appendix 1, as
follows:
Funds will be made available to the Frovider to for program delivery fees and loanable funds to operate
their Homeownership Opportunity Pwogram that pravides homeownership opportunities to low to
maderate-income families through the acquisition and development of hausing units and/ar the
acquisition af existing structures, rehabilitation and resale of the affordable housing units.
SECTYON YI: CONDITION OF SERVICE
The Provider hereby agrees to the following:
A. The Program shall serve eligible very-low and moderate-income persons living in Clearwater. The
Provider shall certify that the activiti�s carried out with funds provided under this Agreement will
meet one or more of the CDBG pragram's National Objectives —1) benefit low to rnoderate income
persons, 2) aid in the prevention or elimination of slum and blight, 3) meet community
developrnent needs having a particular urgency — as deiined in 24 CFR 570.20$ and all applicable
rules and regulatians as contained in the federal HOME Investment Partnership and State of Florida
State Housing Initiatives Partnership (SHIP) programs.
B. The Pravider shall maintain in its file the dacumentation on which basis it deternunes 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 classi#"icatian, head of
househald, ethnicity, race and gend�r, or area benefit data, as required.
C. The Provider shall rnaintain a citizen participation mechanism, which will include, but not be
limited to the fallawing:
1. Logging citizen comments or complaints when received.
2. Copies af comments and/or complaints r�ceived 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 Na. A-110, "Unifarm Administrative Requirements for
Grants and Agreements with Institutions of Higher Education, Hospitals and Other Non-Profit
Organizations", incorporated by reference into this Agreement.
2
E. Costs incurred under this program shall be in compliance with Federal Management Circular No.
A� 122, "Cost Principles for Nan-Profit Organizatians", incorparated by re�erence inta this
Agreement.
F. The Pravider 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 fram the U.S. Department of Housing and Urban Development and/ar 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 Developrnent 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 implementatian 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 implernenting regulations at 24 CFR 8),
the Americans with Disabilities Act of 1990 (Public Law (PL) 101-336), and all state and local
laws requiring physical and program accessibility ta 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. Funds awarded under this Agreement may
be de-obligated should any of the following accur.
(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 pr�j�ct 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 CFR 85.43 or OMB Circular A-110,);
(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;
($) Vialat�s Labar Standards requirements; or
3
(9) Fails to comply with written notice from the City of substandard performance under the
terms of this Agreement.
I. The Pravider 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, calar, natianal arigin ar sex.
J. The Provider agrees that to the extent that it staffs the Program with personnel not presently
ernployed by said party, it will take affirmative action in attempting to employ low income persons
residing in the City of Clearwater, particularly minarity group members.
K. The Provider shall comply with the provisions of 24 CFR 57�.504 (c), "Program Income" and meet
the definition of program income defined in 24 CFR 570.500 which generally states th.at pragram
income is grass incame 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 Prograrn, and State Housing Initiatives Partnership programs
shall be retuined to the City within 45 days after receipt by the Subrecipient. In thase instances
where the City allows the sub-recipient to retain program income, these funds shall be expended for
CDBG eligibl� activities, previausly approved by the City in accordance with the projected
accomplishments and budget descriptions attached to this Agreement. In addition, at the end of the
pragram yeaz, the City may requir� remittance of all or part of any CDBG program income balances
(including investments thereo fl held by the subrecipient (except those needed for immediate cash
needs, cash balances of a revalving laan fund, cash balances from a lump sum drawdown, or cash
or investments held for section 108 security needs).
L. The Provider shall transfer to the City any CDBG funds on hand at the ti�ne of expiration and any
accou�ts receivable attributable ta the use af CDBG fiuids. 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 24 CFR Part 570.208 until five years
after expiration af 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 ta City an amount equal ta 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.
A subrecipient receiving HOME funds must transfer to the City any HOME funds on hand at
the time of expiration af this Agreement and any accounts receivable attributable to the use of
HOME funds.
A subrecipient of SHIP funds recognizes that funds may revert to the City in accordance with
the provisions of the City's lacal hausing assistance plan.
M. The Provider shall comply with First Amendment Church/State principles, as follows:
4
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 religi�n.
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 ta persons on the basis af
religion.
3. It will provide no religious instruction or counseling, conduct n� religiaus worship or
services, engage in no religious praselytizing, and exert no other religious influence in the
provisian of such public services.
4. The partion of a facility used to provide public services assist�d in whale or in part under
this Agreernent shall contain no sectarian or religious symbols or decorations.
5. Th.e funds received under this Agreement shall not be used to construct, rehabilitate, ar
restore any religious facility which is owned by the Provider and in which the public
services are to be provided. Hawever, minor repairs may made if such repairs are directly
related ta the public services; aze located in a structure used exclusively far non-religiaus
purposes; and constitute, in dollar terms, only a minor portion of the CDBG expenditure for
the public services.
N. The Provider shall transfer to the City upon expiration of this Agreement, any CDBG, HOME
and/or SHIP funds an 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 properiy under the Pravider's control must be used to meet one of the National
Objectives in the CDBG Regulations, 24 CFR Part 570.208 until five years or such longer
period of time as determined appropriate by the City after expiration of the Agreement.
Land-banking is a prohibited activity under the City's programs.
2. If the real property is sold within the period of time specified above, the property must be
disposed of in a manner which r�sults in the City being reimbursed in the amount of the current
fair market value of the property, less any portian thereaf attributable ta expenditures on nan-
CDBG funds for acquisition of, or improvement to, the property. Such reimbursement is
required.
O. The Provider agrees that when sponsoring a project financed in whole ar in part under this
Agreement, all notices, informational pamphlets, press releases, advertisernents, descriptions of the
sponsorship of the project, research reports, and similar public notices prepared and released by the
Provider shall include the statement:
5
FUNDED BY
THE CITY OF CLEARWATER
COMMUIVITY DEVELOPMENT BLOCK GRANT,
HUME INVESTMENT PARTNERSHIP, AND
STATE HUUSING INITIATIVES PARTNERSHIP PROGRAMS
In written materials, the words "CITY OF CLEARWATER COMMiTNITY DEVELOPMENT
BLOCK GRANT FUNDS, HOME INVESTMENT PARTNERSHIP PROGRAM FUNDS,
AND STATE HOUSING INITIATIVES PARTNERSHIP PROGRAM FUNDS
ADMINISTERED BY THE HOUSING DIVISION OF THE CITY OF CLEARWATER —
ECONOMIC DEVELOPMENT AND HOUSING DEFARTMENT" shall appear in the same
size letters or type as the narne of the Provider.
P, The Provider shall ensure the fallawing when entering into a sub-contract agreement:
1. The full correct legal name of the party sha11 be identified.
2. The "Scope of Services" shall describe the activities to be performed.
Q. The Provider shall maintain sufficient records in accordance with 24 CFR 570.502 and 570.506 to
determin� compliance with the requirements of this Agreement, the Comrnr.ulity Development
Block Grant Program and all applicable laws and regulations.
T'his documentatian shall include, but not be limited ta, the following:
1. Boaks, records and dacuments in accordance with generally accepted accounting principles,
procedures and practices which sufficiently and praperly reflect all revenues and
expenditures of funds provided directly or indirectly by this Agreement, including matching
fiu�ds and pr�gram income.
2. Time sheets for split-funded emplayees 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 chazges.
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 requirernents such
as necessary and apprapriate determinations, income certifications, and written agreements
with beneficiaries, where applicable.
R. The Pravider is respansible f�r 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 five (5) years
afier expiration af this Agreement, with the fallowing exceptian: if any litigation, claim or audit is
started before the expiratian date af the three year periad, the records will be maintained urxtil all
litigation, claims or audit findings involving these records are resolved. The City shall be informed
in writing after claseout of this Agreement, of the address where the records are to be kept.
SECTION III: OTHER CONTRACTUAL PROVISIDNS
A. Labor Standards
Except with respect to the rehabilitation of residential property designed for residential use for
less than eight hauseh�lds, the pravider and all subcontractors engaged in contracts in excess af
$2,000 for the construction, completion, rehabilitation, ar repair af any building or work iinanced
in whole or in part with assistance prvvided under this Agreement are subject to the federal labor
standards provisions which govern the payment of wages and the ratia af apprentices and trainees
ta 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 wark wages at rates not less
than those prevailing an 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 Sa%ty Standazds 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.
Pravided, that if wage rates are higher than thase requir�d under the regulations are irnposed 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.
S. Flood Disaster Protection
This Agreement is subject to the requirements of the Flood Disaster Protection Act of 1973 (PL
93-234). Use of any assistanc� provided under this Agreement for acquisition or construction in
an area identified as having special flood hazards shall be subject t� th� maaidatory purchase of
flood insurance in accordance with the requirements of Section 102(a) of said Act.
C. Clean Air and FederaC Water Pollution Control Act (Applicable to Contracts and Subcontracts
Which Exceed $XOO,000
The provider shall comply with and require each subcontractor to comply with all applicable
standards af the Clean Air Act af 1970, (42 USC 7401 et seq.), as amend�d, the Federal Water
Pollution Control Act (33 USC 1251 et seq.), as amended, and the regulations of the
Enviranmental Protection Agency with respect thereto, at 40 CFR Part 32 as amended fram time
to time.
D. Provision of the Hatch Act
Neither the provider program nor the funds provided therefore, nor the personnel employed in the
administration of the pragram shall be in any way or to any extent engaged in the canduct of
political activities in contravention of Chapter 15 of Title 5, USC.
�
E. Lead-Based Paint
Any grants or laans made by the provider for the rehabilitation of residential structures with
assistance provided under this Agreement shall be made subject to the provisions for the
eliminatian of lead-based paint hazards under 24 CFR Part 35. Operating Agency will comply
with the requirements of 24 CFR 570.50$ far noti�cation, inspection, testing, and abatement
procedures concerning lead-based paint. Such regulatians require that all owners, prospective
awners, and tenants of prap�rties constructed prior to 1978 be properly notified that such
properties may conta.in lead-based paint Such natification 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 poisan.ing.
F. Special Assessmer�ts
Provider shall not attempt to recover any capital casts of public improvements assisted in whole
or in part with funds provided under Section 106 of the Act (42 USC 5306) ar with amounts
resulting frorn a guarantee under Section 108 (42 USC 5308) of the Act by assessing any amount
against properties owned and occupied by persans 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 casts af such public impravements 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 ta
the Secretary of HUD that lacks sufficient funds received under Section 106 af the Act to comply
with the requirements of subparagraph (1).
G. Acquisition, RehabiXitation, and Demolition of Real Property and D[splacement of Persa�zs
and Businesses
Provider shall comply with the "City of Clearwater, Housing Division, Community Development
Block Grant 1'rogram Plan for Minimizing the Displacement of Persons As a Result �f
Community Development Block Grant Funded Activities" and "City of Clearwater, Housing
Division, Community Development Block Grant Program Residential Anti-displacement a.nd
Relocation Assistance Plan." Pravider shall conduct any acquisition, rehabilitation, or
demolition of real property, and any negotiations for acquisition, rehabilitation ar dernolition of
real property in compliance with the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970, as arnended, Section 104(d) of the Act, and the implementing
regulations at 49CFR 24 and 24 CFR 570.60Fi. Unless specifically permitted, the provider shall
not cause either temporary ar permanent involuntary displacement of persons or businesses. Tf
the provider causes the involuntary temporary �r permanent displacement of any persan 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 pravide 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 ta
8
defend, ta pay, and to indemnify the City from and against, any and all claims and liabilities for
relocation benefits or the provision af replacement dwelling units required by federal statutes and
regulations in connection with activities undertaken pw'suant to this Agreement.
H. Lobbying Restrictions
Provider certifies that, to the best of its kriawledge 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 connectian with the
awarding of any Federal contract, the making of any Federal grant, the making of any Federal
loan, the entexing into of any cooperative agreement, and the extension, continuation, renewal,
amendment, or modifcation of any Federal contract, grant, loan, or cooperative agreement;
If any funds other than Federal appropriated funds hav� been paid or will be paid to any person
for influencing or attempting to influence an ofFicer or emplayee af any agency, a Member of
Congress, an officer or employee of Congress, or an employee of a Member of Congress, in
connection with this �'ederal contract, grant loan or caaperative agreernent, it will complete and
submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accardance with its
instructions; and
It will require that the languag� af this paragraph H be included in the award documents for all
sub-awards at all tiers (including subcontracts, sub-grants, and cantracts under grants, loans and
cooperative agreements) an.d tlaat 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 31 USC 1352. Any person who fails to file
the required certi�cation 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 Developrnent and/or the State of Florida and being duly executed by bath parties,
whichever is later.
The term of this agreement shall be from October 1, 2011 ta September 30, 2012. The term may be
amended if bath execute a written agreement.
L'J
SECTION V: TERMINATION
The City and the Pravider 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 et�ective 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 cas� of a partial tertnination, 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 af such
Agreement, the City rnay terminate such in its entirety.
C. The City may place the Frovider in default of this Agreement, and may suspend or ter�r►inate 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 axe lat�, incozrect ar incamplete in any
material respect.
c. Impl�mentation of this Agreement, far 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
manitoring of the Subrecipient, and applicable HCTD 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,
actians to be taken by the Provider as a conditian precedent to cl�aring 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
af this Agreement. The Provider shall be giv�n na more than fifteen (15) days in which ta
reply in writing, appealing the termination prior to fnal action being taken by the City.
10
D. Let it be further understood that upon curtailment of, or aregulatary constraints placed on, the funds
of the U.S. Department of Housing and Urban Development and/or the State af Flarida, this
Agreernent will terminate eff'ective as of the time that it is determined such funds are no longer
available.
E. Costs of the Provider resulting fram obligations incurred during a suspension or after termination,
are nat allovvable unless the City expressly authorizes them in the nvtice of suspension or
termination or subsequently. Otl�.er costs during suspension or after termination which are
necessary and not reasonably avoidable are allawable if:
1. The costs result from obligations which were properly incurred before the efFectiv� date of
suspension or termination, aze not in anticipation of it, and in the case of ternunation, are
nancancelable, and
2. The casts would be a.11owable if the awazd were not suspended or expired normally at the
end of the Agreement in which the termix�ation takes effect.
F. Upon termination of the Agreement, the Pravider and the City shall rneet to discuss the City's
detertnination 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, sha11 be valid only when reduced ta 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 o£ the Agreement
uriless and until the City aff"icially, in writing, approves such expenditure by executing a written
modification to the original Agreement.
SECTION VII: METHOD �F PAYMENT
It is expressly understood and agreed that the total compensatian to be paid hereunder for actual
expenditures incurred shall be reserved to implement the Provider's Homeownership Upportunity
Program.
It is expressly understood and agreed that the total compensation to be pai.d hereunder far 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 programs. There shall be no program income generated
thraugh these pragrams by the Subrecipient.
fil
Subrecipients may access these funds after their projects have been approved by the City's Housing
Division. Prior to approval, all Subrecipients must forward ta 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.
Fox Housing Education and Counseling, type activities, the allowable amounts that a Subrecipient can
submit reimbursement are contained in "Exhibit A", as amended, of the "Underwriting Guidelines, Polices
And Procedures For pown Payrnent And Closing Costs Assistance - Housing Education, Counseling and
Foreclosure Prevention/Counseling - Fee Schedule".
HOME funds made available through this agreement are provided to the City af 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 ta these funds w�ll be made available on a first
come, first serve, and first eligible basis.
Each Subrecipient must present the City with a formal pay request once the project reaches the payment
standards identified in the praject description. Funds may be advanced for the purchase of vacant
properties on a case-by-case basis, as first appraved by the City. Generally payments to Subrecipients
will be forwaxded upon request at the campletian/closing of each project. The City will not be obligated
to pay clasing costs, taxes, insu.rance or lot maintenance on current or priar land purchases.
Allowable payments will be those as outlined in the City of Clearwater Program Guidelines far the
Housing Pool, as amended, that covers down payment and closing costs assistance, infill housing
activities, rehabilitation and hausing education and counseling and foreclosure prevention and
counseling.
All projects/activities funded thraugh the Hausing Pool must be approved by the City prior to commitment
of funds by the Provider. The Provider shall certify that program participants meet all applicable pragram
requirements and all homes rehabilitated and/or constructed must meet all applicable building and local
codes. Funds requested by the Provider rnust be for actual costs/fees and each request for reimbursement
shall include souxce material for all referenced requests
The funds must be expended in accordance with the terms and conditions of the Agreement. Funds set
aside far this ag�ncy may increase ar decrease, subject ta production perfarmance. 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 compensatian sk�all be paid in accardance 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 (or no expenditures
during the month), including applicable back-up documenta.tian, na later than the tenth (10th) day
of the succeeding month and the City will provide reimbursement, upon approval, within twenty
(20) working days after receipt of the same, and if all required documentation is submitted with
request and if all documentatian is carrect.
12
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 atta.ched 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 itern without prior written
approval of the City. All changes amounting to more than fifteen percent (15%) require rior
written approval.
SECTION VIII: E UAL EMPLOYMENT OPPORTUNITY
During the performance of this contract, the Operating Agency agrees as follows:
1. The Operating Agency shall nat discriminate against any employee or applicant for employment
because of race, color creed, religion, sex age, handicap, disability, sexual orienta.tion, ancestry,
national arigin, marital status, familial status, or any other basis prohibited by applicable law.
The Operating Agency shall take affirmative actian ta ensure that applicants are employed and
that employees are treated during employment without regard to their race, color, creed,
religion, sex age, handicap, disability, sexua.l orientation, aricestry, or national origin. Such
action shall include, but not be limited to the following: Employment, upgrading, dematian or
transfer, recruitment or recruitment advertising, layoff or terminatian, rates of pay or other forms
of compensatian, 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 advertis�ments for emplayees placed by or on
behalf of the aperating Agency, state that all qualified applicants will receive consideration for
employment without regard to race, color creed religion, sex age, handicap, disability, sexual
orientation, a110ESiI}', natianal origin, rnarital 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 pravided
advising the said labor union ar warkers; representatives of the Operating Agency's
commitments under this section, and shall post copies of the notice in conspicuaus places
available to employees and applicants for emplayment.
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 11478,
August 8, 1969 and 12086, October 5, 1978, capies of which are on iile 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 infarmation and reparts 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 ta its books, records, and accounts by HUD
and the Secretary of Labar for puiposes af investigatian to ascertain compliance with such rules,
regulations, and orders.
13
6. In the event af the Operating Agency's noncornpliance with the nondiscrimination clauses of
this contract or witl� any af the said rules, regulations, or orders, this cantract 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 cantracts in
accardance 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 arder 11246 of September 24, 1965, as amended, or as otherwise provided by law.
7. The Operating Agency will include the portian of the sentence immediately preceding paragraph
(1) and the provisions of paragraphs (1) through (7) in every subcantract ar purchase order
unless exempted by rules, regulations, or orders of the Secretary of Labor, issued pursuant t�
Section 204 of Executive Order 11246 of September 24, 1955, as amended, so that such
provisioz�s 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
enfarcing such provisions, including sanctions for nancompliance; provided, however, that in
the event an Operating Agency becomes involved in, or is threatened with, litigation with a
subcontract�r ar vendor as a result af such directian by HUD, the Operating Agency may
request the United States to enter into such litigation to protect the interests af the United States.
A. Equal Opportunity in Participation
The Provider shall adhere to the regulations established in the Housing and Community Development
Act of 1974, and in canfarmance with City policy and all requirements imposed by or pursuant to the
Regulations of HUD (24 CFR Part 570.fi01 a�t�d 570.602) issued pursuant ta 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 prahibited by
applicable law be excluded from participation in, be denied the benefits of, or be subjected to
discrimination under, and pragram ar activity funded in whole or in part with Comrnunity Developrnent
Block Grant Program fiuids.
B. Specific (not exclusive) Discriminatory Actions Prohibited:
The Provider may not directly or through cantractual or ather arrangements, on the ground af race, calor,
cze�d, 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.
(2) Provide any facilities, services, financial aid, or ather benefits, which are different ar 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.
14
(4) Restrict in any way access to, or the enjoyment of any advantage or privilege enjoyed by
others in connection with facilities, services, �nancial 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 ather requirements or condition
which the individual must meet in arder ta be pravided any facilities, services, or other
benefit provided under the program or activity.
(6) Deny any person with the legal right t� wark an oppartunity ta participate in a program or
activity as an employee.
C. Business and EmpCoyment Opportunities for Lower Income Residents, Womer�-Owr�ed
Business Enterprises, and Minority-�wned Susiness 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
%r training and employment be given to lower income residents of the project area, and cantracts far
work in connectian with the praject be awazded to business cancerns which are lacated in, or owned in
substantial part by, persons residing in the azea of the project. In all solicitations for bids, the contractor
must, before signing the contract, provide a preliminary staternent of the warkforce, needs and plans for
passible taraining ar�d employment of low�r 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 requiremer►ts of Section 3 of the Housing and Urban Develaprnent Act of 1968, as amended, and
the clause shall be inserted as a component part of any contract or subcontract. Please see Appendix 3.
If an Operating Agency salicits or r�quests an invitation for bids, every effort feasible will be made to
contact minarity-awned and women-awned 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, 42 USC 200Qd et
seq.) and the Fair Housing Act (42 USC 3G01 19, 31). In accordance with City policy and Title VI of the
Civil Rights Act of 1964 (PL 88-352), in the sale, lease af other transfer of land acquired, leased ar
improved with assistance provided under this Agreement, the deed or lease for such transfer shall
cantain a cavenarit prahibiting discrimination, upon the basis of rac�, 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 ar accupancy of such larid ar any impravements erected ar to be erected thereon.
The Provider will comply with Title VIII of the Civil Rights Act of 1968 (PL 90-284, 42 USC 3601 et
seq.) as amended and will administer all programs and activities related to housing and community
development in a manner to affirmatively further fair housing.
15
SECTION YX: CONFLICT OF INTEREST
The Provider cavenants that no person, under its employ who presently exercises any functions or
responsibilities in connection with Cammunity Dev�lapment Block Crrant Prograrn, HOME Investrnent
Partnership Frogram 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 sha11 be emplayed. The Provider covenants that it
will cornply with all provisions of 24 CFR 570.611 "Conflict of Tnterest", and the Sta.te Statutes governing
conflicts of interest. The Provider shall disclose, in writing, ta tkie City ariy possible conflicting interest or
apparent imprapriety that is covered by the above provisions. This disclosure shall occur immediately
upon knowledge of such possible canflict. The City will then render an a�inian, which shall be binding on
bath parties.
SECTION X: INDEMNIFICATION AND �NSURANCE
The �ravider shall indemnify and hold harmless the City fram any and all claims, liability, losses and
causes of action, which may arise out of the Agreement. The Pravider 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 th�rean.
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 af Insurance.
All liability insurance coverage shall be approved by the City pri«r tn tk►e 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 evid�nce of the required insurance is not forwarded to the City within thirty (30) days after the
executian af this Agreement, this Agreement may be terminated at the City's aption and any payments then
due may be permanently withheld by the City and the City will have no further obligation under this
contract ar any Subrecipient contract.
SECTION XI: REPORTING AND EVALUATION REQUIREMENTS
Maintaining credibility far the community development effort rests heavily on the ability ta 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
praject eva.luation and reporting, which will cansist of both written reparts and staff discussians an a
regular basis. The Provider also assures prampt and efficient submission of the follawing:
A. Monthlv R�orts - are due no later than the tenth ( l Oth) day af the succeeding month and shall
include the request for payment when applicable. A monthly report is due re�ardless if anv funds
hav� been expended. Contents of the Monthly Report, attached hereto and made a part hereof as
Appendix 2, shall include but not necessarily be limited to the following:
16
1. Th� "Financial Repart & Tmplementation Sumtnary" Form, which shall include the request
for payment and documentatian, as applicable.
2. Tl�e "Program Activity Report"
3. The "Request far Reimbursement" Form
4. Instructions for Appendix 2 Forms
B. Final Evaluation - Within thirty (30) days af contract completion, a final report documenting how
the Statutory National Objective and the eligibility requirernents were rnet, must be subrnitted by
the Provider to the City's Housing Divisian far review and approval. The contents of it shall
include a cumulative total of the data submitted during the program's operation. Further, such
r�part shall include statistical findings, which depict program efficiency; i.e., the number of dollars
spent, including non-CDBG funding sources, to render actual service ta 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 praject/activity
is considered "closed-out".
C. Other Reportin� ReAUirements may be required by the City in the event of program changes, need
for additianal informatian or documentation and/or legislation amendments. The Provider shall be
informed, in writing, if any changes become nec�ssary.
Reports and/or requested dacumentatian nat 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.
SECTION XII: AUDIT AND INSPECTIONS
At any time during normal business hours and as often as City ancUor Federal Gaveznment 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, dacumentation, and any other data
relating to all matters covered by the Agreement.
An annual organizatian 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. If this Agreement is closed-out prior to the receipt of an audit report, the City reserves the
right ta recover any disallowed costs identified in an audit after such closeout.
SECTION XIII: REVERSIQN OF ASSETS
The Provider shall transfer to the City any CDBG, HOME or SHTP funds on hand (including program
income) or any accaunts 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
17
control that was acquired or improved in whale or in part of with CDBG, HOME ar SHIP fiulds, unless it
is used to (1) meet one of the national objectives in Section 570.208 until tive yeazs after the expiration of
this agreement, ar 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
mazket value of the property less any portion of the value attributable to expenditures of nan-CDBG,
HOME or SHIP :funds for the acquisition of or improvement to, the property.
SECTION XIV: COMPLIANCE WITH LOCAL STATE & FEDERAL REGULATIDNS
The Provider agrees to comply with all applicable federal regulations as they may apply to program
administratian. Additionally, the Frovider will comply with all state and local laws and ordinances hereta
applicable.
SECTIUN XV: ADDITIONAL CONDITIONS AND COMPENSATION
It is expressly understoad and agreed by the parties hereto that monies contemplated by this Agreement to
be used for compensation originated from grants of federal Cornmunity 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 ex�ressly understood and agreed that in the event of curtailment or non-production of said federal grant
funds, that the iinancia.l sources necessary to continue to pay the Provider compensation will nat be
available and that this Agreement will thereby terniinate effective as of the time that it is determined that
said funds are no langer available.
In the event af such determination, the Provider agrees that it will not look to, nor seek to hald liable, the
City or any individual member of the City Commissian thereof persanally 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.
18
IN WITNESS WI�REOF, the parties hereto have caused this Agreement to be executed by their duly
authorized af�cials on the day and date first above indicated.
Cauntersigned:
���
Frank V. Hibbard
Mayor
Continued:
Approved as to form:
Laura Mahony
Assistant City Attorney, II
LARGO AREA HOUSING DEVELOPMENT
CORP.
By ,��7c� ��� c�r'r�° -
Board President
fz��/
Date
--taTTEST: ,� r
G^.(.�,� L
Board Secretary
---- �13v�11
Date
CITY OF CLEARWATER, FLORIDA
By: �.6.�..+.�.�.
illiam B. Horne, II~
City Manager
Attest:
19
Rosemarie Call, MPA,
City Cl�rk
c�`� ���
� Y ,..._�
������
ryF
��f��
�
,:� �r
���
_�C�°�
APPENDIX 1
Provider's Progr�m Budget
Largo Area Housing Developm�nt Corp FY 11-12
aea�,..y^;:�n-:^^ vw ��xa+�r `f ,R�titvxuw•tae� r �...w, .�.r._.7�;,'7; - ti .m,. ..r...i.��,.�.--r.����_�„�.,�,iw i+7 ��,.. ^p�x;•��s ..��a nr.�v�'q°e�;�rxrv r�
Lir _�� o,��•d.� 5�'�Li t 't��a; v%i -�.a�,�7''I' S"5�,�. 5,.�.';k;�:,���f: �d. ='�'�,ri� ��,3;'�,a�1�'P:f��= �:.6.i° s� i«'a`i�-.I
'1� �R' °dj `.7�' ���� y '!i`:�•., '{ i'ry „1�� ryy.}, r�'g�,��.,J; ;',J�,�P' ry}6'���t�7,�.11r�:t' ��I,.,�� �'�;�'''-" td� �"�''' '.I�",rv S'•a� �'4 a'�' g I
e. iia�' e ,� i'.,: 6,'f � ''��.i � : Y�d^"-T, "� �'� 5; �"�g'i;i�;:��i'I: �,i r9%�i ,n1!� �'il.i'�„I;I� , „ . ��a:,� g "gi��i€! . �i�M � ; <N� 1 •�35 �� �.
�.. C.i��;�ii�. �Y �.5 � �I 1', 4,3; ..7�� ?"�?K'�,�.°R,ri.%��i:� ii � ) �; ��, ' , � ��9 , ! �'' . rr<Cp� i � �r1� ,�•�,. e 8 I
; 'i yr;Z �r�'' �� � 19 _ � �r , ! ,, ; � i! . �J;�,� �f I E;�4 :,h;'al,i� b� °� . � " � - � `
d��1,.$d:" '�i 3 I., ,: _...,,!7';;; ,,�a� ���ii;'!Ri,r,"'i ,I °.,v',1;,��;��i{' �,ra,? .� ij, b a M�;� e�'','; t
tl i,R �`
��� . � —. , . � 4, �.:yy GS; � �: : raq ^ „��' � -;r y.,,.: ��,� ,f � �,a � � �m rg�'{ ,i;-
�N" ,�/;,�,{Ir�`i i�p �F.y( "•;4����:,1x"�I'`��Y,,��br.,,A:'��', r.Yi,it ���'rd;�'..I��,ny i�. ..�,� n. •�° tl: @,
i �„� i �� � � �� ip'1 ', �����"� ��'�1'� r f �� ' .fF� '},i� .��j� I� '�'�i. ��,�J �� '.{� ' a ;�� ' �I wr'�i'��.1.�.{. "�
S 'i vI u � ' � �J ,�, �d�i1',1''i',i'! i�1��..�i�1.?a��,`8��4:'��' �'w�91���1.���6'�!�:I�'�3��iA1��� I' ����� �Q� .�1��'N�,°' � �°
� 1�:,,� ,�lf��u �,�. ����i, ,,�l�� ' .�� �!Y' � ,,ik � .i.i ..t . .�: ��,,, �,.
�j�$}''�t�i; ��,' c �;�'r {�d,{a�,;.Ft`; �'p� ��� "•�'-�v�!:i' ; :�'�� ��._;...,:;. _ _ f ��, . ;..., � $ui:;a�Ae�:-rr.,_,.,.;, � q qq.s ";�,
! {.� � q ,"p �y�y'pI �i� R �:� �I:�� >,9 JM�6�� - � �i���ti''� �al {rf��ll'7-i�}�, {�) p y
�' � � �x a....i1a „i 1u n ' ' . ,
� � ��.. ,...�:...i.Ak���.^.1.. ; :. , �� , �
'P 1�.,IGIMa��.ii�:�N�a6� I di�%td„�i�`OaIiS9::A^'.� Pktl�, �.'1'1�.:�:,.�' ..�Lv�: :I';'., .1ir��i ��.f.�l�i..a:r, ��"'d,�j;r:L'f �;.�a t
..__ __ __ ._-r.-. _- -___--__--_ -_ -__ -._-_____ _ _ __ .. . . � _ .• � � �
• • � • � r
� Y • � � �
■_ ,
��o� .� d��m��.q�l ���I��4� i� •� ,�.. iFl��&pa2���&9 S
ret1 aR,"1�4�
APPENDIX 1
Provider's Program Implementation Schedule
Largo Area Housing Development Corp FY 11-1Z
Planned Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Implementation
Steps
APPENDIX 3
EQUAL EMPLOYMENT OPPORTUNITY CLAUSE
FOR CONTRACTS SUB.]ECT TO EXECUTIVE ORDER 11235
The applicant hereby agrees that it will incorporate or cause to be incorporated inta any contract for
construction work, or modification thereof, as defined in the regulations of the Secretary of Labor at 41
CFR Chapter 60, which is paid far in whole ar in part with funds obtained from the Federal Gavernrnent or
barrawed on the credit of the Federal Government pursuant ta the grant, contract, loan insurance, or
guarantee, or undertaken pursuant to any Federal program involving such grant, cantract, loan, insurance,
ar guarantee, the following Equal Opportunity clause:
During the performance of this contract, the contractar agrees as follows:
(1) The contractor will not discriminate against any emplayee or applicant for employment because of
race, calar, r�llglOri, sex, or natianal origin. The contractor will take affirmative action to ensure
that applicants are employed, and that employe�s are treated during employment without regard to
their race, color, religion, sex, or national origin. Such action shall include, but nat be limited to the
fallawing: emplayrnent, upgrading, demotion, or transfer; recruitment or recruitment advertising;
layoff or termination; rates of pay or ather forms of compensation; and selection of training,
including apprenticeship. The contractor agrees ta post in a canspicuaus place, available to
emplayees and applicants far employment, notices to be provided setting forth the provision of this
nondiscrimination clause.
(2) The contractar will, in all salicitations ar advertisements for employees placed by or behalf of the
contractor, will state that all qualified applicants will receive consideration for employment �ithout
regard to race, color, religion, sex or natior�al origin.
(3) The contractor will send to each labor union or representative of workers with which he has a
callective bazgaining agreernent ar other contract or understanding, a notice to be provided advising
the said labor union or workers' representative af the contractar's cammitments under this section,
and shall past copies af the notice in conspicuous places available to employees and applicants for
employment.
(4) The contractor will comply with all provisions of Executive Qrder 11246 of September 24, 1965,
and of the rules, regulations, and relevant orders of the Secretary of Labor.
(5) The contractor will fumish all information and reports required by Executive Order 11246 of
September 24, 1965, and by rules, regulations, and arders oF the Seczetary af 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 campliance with such rules,
regulations, and orders.
(6) In the event of the co�tractar's non-cornpliance with the non-discrimination clauses of this contract
or with any of the sa.id rules, regulations, ar orders, this cantract may be canceled, terminated, or
suspended in whole or in part and the contractor may be declared ineligible for further government
T
contracts ar federally assisted construction contracts in accordance with procedures authorized in
Executive Order 11246 of September 24, 1965, or by �rule, regulation, or order af the S�cretary of
Labor, ar as oth�rwise 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 pwrchase arder unless exempted
by rules, regulations, ar orders of the Secretary af Labor issued pursuant to Section 204 of
Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each
subcontractor ar 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 subcontractar or vendor as a result af such
direction by the administering agency, the cantxactar may request the United States to enter into
such litigation to protect the interest af the United States.
The applicant further agrees that it will be bound by the above Equal Oppartunity clause with respect to its
own employment practices when it participates in federally assisted constructian work: provided that, if the
applicant so participating is a State or local gavemtnent, the above Equal Opportunity clause is not
applicable to any agency, instrumentality ar subdivision of such government vvhich does not participate in
work on or under the contract.
The applicant agrees that it will assist and caoperate actively with the administering agency and the
Secretary of Labor in obtaining the compliance of contractors and subcontractars with the Equal
Opportunity clause and the rules, regulations, and relevant arders of the Secret�y of Labor, tY�at it will
furnish the administering agency and the Secretary of Labor such information as they rnay require for the
supervisian of such campliance, and that it will otherwise assist the administering agency in the discharge
af the agency's primary responsibility for securing compliance.
The applicant further agrees that it will refrain from entering into any contract or contract rnadification
subject to Executive Order 11246 of September 24, 1965, with a cantractor 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 sanctians and penalties for violation of the equal opportunity
clause as may be imposed upon contractors and subcontractors by the administering agency af the Secretary
of Labar pwrsuant to Par II, Subpart D of the Executive Qrder. In additian, the applicant agrees that if it
fails or refuses to comply with these undertakings, the administering agency znay 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 failuz�e ar refund occurred until satisfactory assurance of future cornpliance has been received
from such applicant; and refer the case to the Deparbment af Justice for appropriate legal proceedings.
��
ll
FEDERAL - SECTION 3 CLAUSE
A. The work to be performed under this contract is on a praject assisted under a program providing
direct �'ederal financial assistance fram the Department �f Housing and Urban Development and is
subject to the requirernents of Section 3 of the Housing and Urban Development Act of 1968, as
amended, 12 U.S.C. 1701u. Section 3 requires that to the greatest extent feasible, opportunities for
training and employment be given to lower income residents of the project area, and contracts for
wark 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 cantract will camply with the provision of said Section 3 and the regulations
issued pursuant thereto by the Secretary of Housing and Urban Development set forth in 24 CFR
135, 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 ta each labor organization or representative of warkers with which he has
a collective bargaining agreement or other contract or understanding, if any, a notice advising the
said labor organization of warkers' representative of his commitments under this Section 3 Clause
and shall past copies of the notice in conspicuous places available to employees and applicants for
ernployment 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 directian of the applicant far ar recipient of Federal financial assistance,
take appropriate action pursuant to the subcantract upon a fmding that the subcontractor is in
violation of regulations issu�d by the Secretary of Housing and Urban Development, 24 CFR 135
The contractor will not subcontract with any subcontractor where it has natice or knowledge that
the latter has been found in violation of regulations under 24 CFR 135, and will not let any
subcantract unless the subcantractor has first provided it with a preliminary statement af ability to
comply with th.e requirements of these regulatians.
E. Compliance with the provisions of Section 3, the regulations set forth in 24 CFR 135, and all
applicable rules and orders of the Department issued hereunder priar 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 subcantractors, its
successors, and assigns to th�se sanctions specified by the grant or loan a�reement or contract
through which Federal assistance is pravided, and to such sanctions as are speciiied by 24 CFR
135.
3