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SUBRECIPIENT AGREEMENT FY 2011-2012 - HOUSING POOL ACTIVITIESCITY OF CLEARWATER, FLORIDA AND TAMPA BAY COMMUNITY DEVELOPMENT CORPORPORATION FY2011-2012 SUBRECIPIENT AGREEMENT (Housing Pool Activities) THIS SUBRECIP�ENT AGREEMENT as entered into on this ls` day of October 2011, by and between the City af C�earwater, a�larida municipal carporatian, having its �rincipal office at 112 Sauth Osceola Avenue, Clearwater, Florida, hereinafter referred to as the "City", and the Tampa Bay Community Development Corporation, hereinafter referred to as the "Provider" or "Subrecipient", whose principal address is: 2139 N.E. Coachman Road, Ste. #1, Clearwater, FL 33765. 1`�'I M 11►1.x•Y•�.�4_� �� WHEREAS, the City has entered into an agreement with the U.S. Departm�nt of Hausing and Urbari Development (HUD) for the purpose of conducting a Housing and Community 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.G 5301 et seq.); and the Cran.stan-Ganzalez Natianal Affordable Housing Act of 1990 (�2 U.S.C. 12701 et seq.); and WHEREAS, the City has entered into an agreement with the U. S. Department of Housing and Urban Development far the purpose of conducting the Cammunity Development Block Grant (CDBG) (24 (CFR 570) and the HOME Investment Partnership (HOME) Program (42 CFR 92) with federal assistance utider Title II of the Cranston-Gonzalez National Affordable Housing Act of 1990, as a�mended (42 U.S.C. 12701-12$39); and WHEREAS, the City has entered into an agreement with the State of �'lorida for the purpose of conducting the State Hausing Initiatives Parh�ership (SHIP) Program with State of Florida assistance under the William E. Sadowski Housing Act (Section 420.907 - 420.9079, Florida Statutes, and Ru1e 67-37, Florida Administrative Code (FAC)) which was signed into law on July 7, 1992; and WHEREAS, the City has entered into an agreement with Finellas County to assist in the redevelaprnent and rehabilitation of abandoned and foreclosed properties through the use of Neighborhood Stabilization Program 2(NSP2) and Neighborhood Stabilization Program 3(NSP3) funding, created as a component of the federal Community Development Black Grant under Division B, Title III of the Housing and Economic Recovery Act of 2008 (HERA) and further implementation of the NSP2 and NSP3 Program is governed by all applicable laws and regulation governing the uses oiNSP2 and NSP3 funds, as set forth in the American Reinvestment and Recovery Act oF 2Q09 (ARR.A), the Notice of Funding Availability, CDBG, and the Grant application (collectively, the NSP2 and NSP3 Requirements). WI�REAS, the City has determined thraugh its Fiscal Year 20l �-2016 Consolidated Plan and FY2011-2012 Consolidated Action Plan, which was adopted an July 21, 2011, the necessity for providing affordable housing opportunities and housing education and counseling s�rvices ta very low to moderate- income households residing in Clearwater; WHEREAS, the City desires to engage the Provider ta render certain services in cannection therewith: NOW, THEREFORE, the parties hereto agree as fallows: SECTION I: SCOPE OF SERVICES The Provider agrees to provide City funds far the provision of educational, down payrnent assistance and closing costs assistance to households who are very-low ta maderate income in accordance with the City's "Housing Poal -- Underwriting Guidelines, Polices and Procedures", as amended, all in accordance with the projected accomplishments attached and made a fully binding part of this Agreement, as Appendix 1, as follaws: Funds will be made available to the Provider to render affordable hausing opportunities to low to moderated income hauseholds through the acquisition of real property and the development of housing units. Funds will be made available to the provider for canying out Neighborhood Stabilization Program 2 and Neighbarhaad Stabilization Program 3 activities in a manner satisfactory to the City af Clearwater and consistent with all the standards of providing these funds in accordance with the policies, procedures and other provisions of the HUD Neighborhood Stabilization Program Single-Family Development and Sales Pragram Manual provided by the City and referenced herein. This program activity may included the acquisition and rehabilitation of residential pr�perty that is foreclosed upon, abandoned, blighted or vacant in accordance with the defnitions and requirements of the NSP2 and NSP3 program. Funds will be made available to the Provider for program delivery fees far dawnpayment assistance loans on behalf of the City af Clearwater. Assistance will be given to eligible hozx�eowners whose hausehald incomes are below $0% AMI to purchase affordable, safe and sanitary hornes throughout the City of Clearwater with emphasis placed on increasing homeownership in the City's revitalizatian areas. SECTION II: CONDITION OF SERVICE The Provider hereby agrees to the fallowing: A. The Program shall serve eligible very-low and rnoderate-incame persons living in Clearwater. The Provider shall certify that the activities carried out with funds provided under this Agz�eement will meet one or more of the CDBG program's Nati�nal Objectives —1) beneiit low to moderate income pers�ns, 2) aid in the preventian or elimination of slum and blight, 3) meet cammunity development needs having a particulaz urgency — as defined in 24 CFR 570.208 and all applicable rules and regulations as contained in the f�deral HOME Investment Partnership and State of Florida State Housing Initiatives Partnership (SHIP) programs. �a B. The Provider shall maintain in its file the documentation on which basis it determines that the project benefits low and moderate-income persons, minorities and resid�nts af Clearwater. Such records shall include, but not be limited to profiles identifying financial classification, head of household, ethnicity, race and gender, or area benefit data, as required. C. The Provider shall maintain a citizen participation mechanisrn, which will include, but not be limited to the follawing: 1. Logging citizen comments or complaints when received. 2. Capies of comments and/or complaints received in writing. 3. Copies of responses to complaints and/or explanations of resolutions ta camplaints. D. The Provider shall comply with Subpart c— Post Award Requirements of the Office of Managernent atxd Budget (OMB) Circular No. A-110, "Uniform Administrative Requirernents for Grants and Agreements with Institutions of Higher Education, Hospitals and Other Non-Profit Organizations", incorporated by reference into this Agreement. E. Casts incurred under this program shall be in compliance with Federal Managernent Circular No. A-122, "Cost Principles for Non-Pr�fit Organizations", incorporated by reference into this Agreement. F. The Provider shall abide by those provisians of 24 CFR Part 570 subpart J, when applicable, incarporated by reference into this Agreement. G. No expenditures or obligations shall be incurred for the program priar to approval and release of funds from the U.S. Depart�ment of Housing and Urban Development and/or the State af Florida. Further, it is expressly understood tha.t in the event no funds are released from the U.S. Department of Hausing and Urban Development and/or the State of Florida in connection with this Program, then the City is not liable for any claims under this contract. H. The Operating Agency hereby certifies that, in the implementation of projects funded by this Agreexnent and in all of its other operations, it will comply with all requireznents af 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 (Public Law (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 indernnify th� City from and against any and all liability for any noncaxnpliance on the part of the Operating Agency. Funds awarded u.�der this Agreement may be de-obligated should any of the following accur. (1) Notiiication by HUD to the City that said project is ineligible because of project location, services provided, or any ather reasan cited by HUD; 3 (2) Notification by HUD to the City that said project is deficient and that continued support of the project is not providing an adequate level of services to low income and minority people; or (3) Written notification from HUD to the City that the program funds made available to the City are being curtailed, withdrawn, or otherwise restricted. (4) k'ails ta file required reports or rneet project progress ar 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 Circulax A-110,); (6) Expends funds urider this Agreement far ineligible activities, services or items; (7) Implements the project prior ta notification from the City that the federal environmental review process has been completed; (8) Violates Labar Standards requirements; or (9) Fails to comply with written notice from the City of substandard perfarmance under the terms af this Agreement. T. The Provider shall certify, pursuant to Section 109 of the Act, that no person shall be denied the benefits oi the program on the ground of race, color, national arigin or sex. J. The Provider agrees that ta the extent that it staffs the Prograrn with personnel nat 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 Pravider shall comply with the prvvisions of 24 CFR 570.504 (c), "Program �ncome" and meet the definition of program income deiined in 24 CFR 570.500 which generally states that prograrn incame is gross income received by the recipient or a Subrecipient directly generated from the use of CDBG funds. All program incorne generated through the use of Community Development Block Grant, HOME Investment Partnership Frogram, and State Housing Initiatives Partnership pragrarns shall be returned t� the City within �5 days after receipt by the Subrecipient. �n thase instances where the City allows the sub-recipient ta retain program income, these fiulds shall be expended for CDBG eligible activities, previously approved by the City in accordance with the projected accomplishments and budget descziptions attached to this Agreement. In addition, at the end of the program year, the City may require remittance of all or part af any CDBG program income balances (including investments thereo� held by the subrecipient (except those needed f�r immediate cash needs, cash balances of a revolving loan fund, cash balances from a lump sum drawdown, or cash or investments held for section 108 security needs). 4 L. The Provider shall transfer to the City any CDSG funds on hand at the tirne 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 fiinds in excess of $25,000 shall be: (1) Used to meet one af the national objectives in Section 24 CFR I?art 570.20$ until five years after expiration of th� agreement, or fro such longer period of tinne as determined to be appropriate by the City; or (2) If not used as stated above, the provider shall pay to City an amount equal ta the current market value af th� property less any partian of the value attributable to expenditures an non-CDBG funds %r the acquisitian of or improvement to, the properiy. The payrnent shall be considered pragram income. A subrecipient receiving HOME funds must transfer to the City any HOME funds on hand at the time of expiration of 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 1aca1 housing assistance plan. M. The Provider shall comply with First Amendment Church/State principles, as fallaws: 1. It will not discriminate against any employee or applicant �or employment on the basis ai religion and will not limit employment or give preference in employment ta persons on the basis of religion. 2. It will not discriminate against any person applying for public services on the basis af religion and will not limit such services or give preference to persans on the basis of religion. 3. It will provide na religious instruction or counseling, conduct no religi�us worship or services, engage in no religious proselytizing, and exert no other religious influence in the pravision 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 contairi na 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 an.d in which the public services are to be provided. However, minor repairs may made if such repairs are directly related to the public services; are located in a structure used exclusively for nan-religious purposes; and constitute, in dallar terms, only a minor portion. af the CDBG expenditure �ar the public services. 5 N. The Provider shall transfer to the City upon expiration of this Agreement, any CDBG, HOME and/or SHIP funds on hand at the tirr►e of expiration and any accounts receivable attributable to the use of CDBG, HOME and/ar SHIP funds. The following restrictions and limitations apply ta any real properiy 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 Natianal 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 Agre�ment. 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 praperty rnust be disposed of in a manner which results in the City being reimbursed in the amount of the current fair market value of the property, less any portion thereof attributable ta expenditures on non- CDBG furids for acquisitian of, or improvement to, the property. Such reimbursement is required. 4. 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 CUMMUNITY DEVELOPMENT BLOCK GRANT, HOME INVESTMENT PARTNERSITYP, AND STATE HOUSING INITIATIVES PARTNERSHIP PROGRAMS In written materials, the wards "CITY QF CLEARWATER COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS, HOME INVESTMENT PARTNERSHIP PROGRAM FUNDS, AND STATE HOUSING INITYATIVES PARTNERSHIP PROGRAM FUNDS ADMTNTSTERED BY THE HOUSING DIVISION OF THE CITY OF CLEARWATER — ECONOMIC DEVELOPMENT AND HOUSING DEPARTMENT" shall appear in the same size letters or type as the name of the Frovider. P. 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. Q. The Provider shall maintain sufficient records in accordance with 24 CFR 570.502 and 570.SQ6 to deterinine compliance with the requirements of this Agreement, the Carnrnunity Development Slock Grant Program and all applicable laws and regulations. 6 This documentation shall include, but not be limited to, the following: Bo�ks, records atid dacuments in accordance with generally accepted accounting principles, procedures and practices which sufficiently and properly reflect all revenues and expenditures of funds provided directly or indirectly by this Agreement, including matching funds and program income. 2. Time sheets for split-funded employees who work on m�re than ane activity, in order to record the CDBG, HOME, andJor SHIP activity delivery cost by project and the non-CDBG related charges. 3. How the Statutary 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 appr�priate determinations, income certifications, and written agreements with beneficiaries, where applicable. R. 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 far a period of iive (5) years after expiratian of this Agr�ement, with the following exception: if any litigation, claim or audit is started before the expiration date of the tlu�ee year periad, tk�e records will be maintained until all litigation, claims or audit findings involving these records are resolved. The City shall be inforcned in writing after closeout of this Agreement, of the address where the records are ta 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 subcontractars 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 provisians which gavern the payment of wages and the ratio of apprentices au�.d trainees to journey workers. Under the terms of the Davis-Bacan Act, as amended, the provider is required to pay all laborers and mechanics employed on construction work wages at rates nat less than those prevailing on sirnilar construction in the locality as determined by the Secretary of Labar, and shall pay �vertime comp�nsation in accordance with and subject to the provisians of the contract Work Hours and Safety Standards Act (40 USC 327-332), and the provider shall camply 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 ar lacal 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 Protectian Act of 1973 (PL 93-234). Use of any assistance provided under this Agreement for acquisition ox canstruction in ari area identified as having special flood hazards shall be subject ta the mandatory purchase of flood insurance in accordance with the requirements of Section 102(a) of said Act. C. Clean Air arid Federal Water Pollution Coritrol Act (ApplieabXe to Cantracts and Subcontracts Which Exceed $I00,000 The provider shall comply with and require each subcontractor to comply with all applicable standards of the Clean Air Act of 1970, (42 USC 7401 et seq.), as amended, the Federal Water Polluti�n COritl'01 ACt (33 USC 1251 et seq.), as amended, and the regulations oi the Environmental Protection Agency with respect thereto, at 4� CFR Part 32 as amended from time to time. D. Pravisiori of the Hatch Act Neither the provider program nor the funds provided therefore, nor the persozuiel employed in the administration af the program shall be in any way or ta ariy extent engaged in the conduct of political activities in contraventian of Chapter 15 of Title 5, USC. E. Lead-Based Paint Any grants or l�ans made by the provider for the rehabilitation of residential structures with assistance provided under this Agreement shall be made subject to the pravisions for the elimination of lead-based paint hazards under 24 CFR Part 35. Operating Agency will comply with the requirements �f 24 CFR 570.608 for notificatian, inspection, testing, and abatement procedures concerning lead-based paint. Such regulations require that all awners, prospective owners, and tenants af praperties constructed prior to 1978 be properly notified that such properties may conta.in lead-based paint Such notiiication 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 r�caver any capital costs of public improvernents assisted in whole ar in part with funds provided under Section 106 of the Act (�2 USC 5306) or with amounts resulting from a guarantee under Section 108 (42 USC 53Q8) af the Act by assessing any amount against properties owned and accupied by persons of low and moderate income, including any fee charged or assessment made as condition af 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 ar assessment that relates to the capital costs a� such public improvements that ar� financed from revenue sources other than under Title 1 of the Act, or (2) for purpases af assessing any amount against properties owned and accupied by persons of maderate incame, the grantee certifies to the Secretary of HUD that lacks sufficient funds received under Section 106 of the Act to cornply with the requirements of subparagraph (1). 8 G. Acquisition, Rehabilitation, and Demalition of Real Praperly and Displacement af Persvns and Businesses Provider shall comply with the "City of Clearwater, Hausing Divisian, Camrnunity Developrnent Black Grant Program Plan for Minimizing the Displacement of Persons As a Result of Community Development Block Grant Funded Activities" and "City oi Clearwater, Housing Division, Cornrnunity Developm�nt Block Grant Pragrarn Residential Anti-displacement and Relocation Assistance Plan." Provider shall c�nduct any acquisition, rehabilitatian, or demolition of real property, and any negotiations for acquisition, rehabilitation or demolition of real property in compliance with the Unifarm Relocation Assistazace 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 CFR 570.606. Unless specifically pezxnitted, the provider shall not cause either temporary or permanent involuntary displacernent af persans or businesses. If the provider causes the involuntary temporary or permanent displacement of any person or business as a result of Community Development Black Grau�t 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 bene�ts, and replac�ment dwelling units as required by the Unif�zm R�locatian Assistance and Real Property Acquisition Policies Act of 19'�0, as amended, Section 104(d) oi the Act, and the implementing regulatians at 49 CFR 24 and 24 CFR 570.60G. 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. Lobbying Restrictivns Provider certifies that, to th� best af 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 emplayee of Cangress, or an employee of a Member of Congress in connection with the awarding of any Federal cantract, 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, laan, or cooperative agreement; If any funds other than Federal appropriated funds have be�n paid or will be paid to any persan 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 ernployee oF a Member of Congress, in connection with this Federal contract, grant loan ar cooperative agz�eeznent, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; and It will require that the language af this paragraph H 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 accardingly. 9 This certifcation is a material representation of fact upon which reliance was placed when this transaction was made ar entered into. Submissian 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 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. The term of this agreement shall be from October 1, 2011 to September 30, 2012. The term may be amended if both execute a written agreement. SECTIQN V: TERMINAT�ON 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 tertnination conditions. A written notificatian shall be required and shall include the following: reason for the ternunation, 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 terminatian, the City deternunes that the remaining portion of the Agreement will not accomplish the purposes of such Agreement, the City may ternunate 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. Failuxe to comply and/or perform in accordance with this Agreement, or any federal statute or regulation. b. Submitting reports to the City, which are late, incorrect or incomplete in any material respect. c. Implementation of this Agreement, for any reason, is rendered impossible or infeasible. d. Failure to respond in writing to any concerns raised by the City, including substantiating documents when required/requested by the City. 10 e. Any evidence of fraud, mismanagement, and/or waste, as determined by the City's manitaring of the Subrecipient, and applicable HUD rules and regulations. 2. The City shall notify the Provider in writing when the Provider has been placed in default. Such notification shall include actians taken by the City, such as withhalding of payments, actians 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 faund for termination of this Agreernent. The Provider shall be given no more than fifteen (1S) days in which to reply in writing, appealing the ter�nination prior to fmal action being taken by the City. D. Let it be further understood that upon curtailment of, or regulatory constraints placed on, the funds of the U.S. Department of Housing and Urban Development and/or the State of Florida, this Agreement will terminate effective as of the time that it is determined such funds are no longer available. E. Costs of the Provider resulting from obligations incurred during a suspension or after termination, are not allowable unless the City expressly authorizes them in the notice of suspensian ar termination or subsequently. Other casts 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, ar� nat in anticipation of it, and in the case of termination, are noncancelable, and 2. The costs wauld be allawable if the award were not suspended or expired normally at the end of the Agreement in which the termination takes effect. F. Upan terminatian af the Agreement, the Provider and the City shall meet to discuss the City's determination if any amounts are to be repaid ta the City or if additi�r�al 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 praject and/ar the Praject Irnplementation 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. 11 The City sha11 n�t reimburse the Provider foz' 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 modificatian to the ariginal Agreement. SECTIUN VII: METHOD OF PAYMENT It is expressly understood and agreed that the total compensation to be paid hereunder far actual expenditures incurred shall be reserved to implernent the Pravider's Downpayment Assistance Progra»� It is expressly understaod and agreed that the total compensation to be paid hereunder for actual expenditures incu.rred shall be reserved in tl�e City's Housing Pool. The Housing Pool may be comprised oi funding from the CDBG, HOME, and SHIP programs. Th�re shall be na pragram incorne generated through these programs by the Subrecipient. Subrecipients may access these funds after their projects have been approved by th� City's Housing Divisian. Priar to approval, all Subrecipients must forward to the City a project analysis on each activiry 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. For Housing Education and Counseling, type activities, the allowable amounts that a Subrecipient can submit reimbursement are contained in "Exhibit A", as amended, of the "Undervvriting Guidelines, Polices And Procedures Far pown Payment 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 of Clearwater by the U. S. Department of Hausing 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 �n a first come, first serve, and first eligible basis. Each Subrecipient must present the City with a farmal pay request once the project reaches the payment standards identifed in the project description. Funds may be advanced for the purchase af vacant properties on a case-by-case basis, as iirst approved by the City. Generally payments to Subrecipients will be forwarded upon request at the campletion/closing af 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 will be those as outlined in the City of Clearwater Program Guidelines for the Housing Pool, as amended, that covers down payment and closing costs assista�nce, infill hausing activities, rehabilitatian and housing education and caunseling and foreclasure prevention and counseling. ia All projects/activities funded through the Housing Pool must be approved by the City priar ta cammitment af funds by the Provider. The Provider shall certify that program participants meet all applicable program requirements and all homes rehabilitated and/ar constructed rnust meet all applicable building arnd local cades. Funds requested by the Provider must be for actual costs/fees and each request for reimbursement shall include source material for all referenced r�quests The funds must be expended in accordance vvith 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 Pravider 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 prajected accornplishments and budget descriptians attached hereto and made a part hereof as Appendix 1. A. The Provider shall submit manthlv requests for payment for actual expenditures (or no expenditures during the month), including applicable back-up documentatian, no later than the tenth ( l Oth) day of the succeeding month and the City will provide reimbursement, upon approval, within twenty (20) working da.ys after receipt of the same, and if all required documentation is submitted with request and if all documenta.tion is carrect. B. The City agrees to pay the Provider for expenditures incurred under this Agreement on an as needed basis in accordance with the Budget atid Project �mplementation Schedule attached hereto and nnade a part hereof as Appendix 1. Line item transfers are allawable anly within each component and may not exceed in the aggregate fifteen percent (15%) of each line item without Urior written approval of the City. All changes amounting to more than fifteen percen.t (15%) require prior written approval. SECTION VIII: EpUAL EMPLOYMENT OPPORTUNITY During the perfarmance of this contract, the Operating Agency agrees as follows: 1. The Operating Agency shall not discriminate against any employee or applicant for employment because af race, color creed, religion, sex age, handicap, disability, sexual orientation, ancestry, national origin, rnarital status, familial status, or any other basis prohibited by applicable law. The Operating Agency shall take aff rmative action to ensure that applicants are employed and that employees are treated during employment withaut regard to their race, color, creed, religion, sex age, handicap, disability, sexual orientation, ancestry, or national arigin. Such action shall include, but not be limited to the following: Employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or ternunatian, rates af pay or ath�r forms of compensation, and selectian 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 af 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 consideratian far employment withaut regard to race, color creed religion, sex age, handicap, disability, sexual 13 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 ather contract of understanding, a notice to be provided advising the said labor union or workers; representatives oi the Operating Agency's commitments uunder this section, and shall post capies of the notice in canspicuaus places available to employees and applicants for employment. 4. The Operating Agency will comply\ with all provisions of Executive Qrder 11246, Equal Employment opportuniry, of September 24, 1965, as amended by Executive Orders 11478, August 8, 1969 and 12086, October 5, 1978, capies of which are an file and available at the City and af the rules regulations, and relevant orders of the Secretazy of Labar. 5. The Operating Agency will furnish all information and reports required by Executive Order 11246 of September 24, 1955, as amended, and by rules, regulations, and orders af the Secretary af 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 the event of the Operating Agency's noncompliance with the nondiscrimination clauses of this contract or with any of the said rules, regulatians, ar 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 cantracts or federally assisted construction contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, as amended, and SL1C11 �tl1�i' satzctions may be imp�sed and remedies invaked as provided in Executive order 11246 of September 24, 1965, as amended, ar as otherwise provided by law. 7. The Operating Agency will include the portion of the sentence irnmediately preceding paragraph (1) and the provisions af 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 Sectian 204 af Executive Order 11246 af September 24, 1965, as amended, so that such pravisions will be binding upon each subcontractor or vendor. The Operating Agency will take such action with respect to any subcontract or purchase arder as HUD may direct as a nneans of enforcing such provisions, including sanctions for nancampliance; pravided, haw�v�r, that in the event an Operating Agency becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result af 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. A. EquaC Opportuniry in Participation The Provider shall adhere to the regulations established in the Housing and Community Development Act of 1974, and in conformance with City policy and all requirernents imposed by ar pursuant ta the Regulations of HUD (24 CFR Part S7U.601 and 57�.602) issued pursuant to Section 109, no person in the United States shall on the ground of race, color creed, religian, sex, age, handicap, disability, sexual 14 arientatian, ancestry national origin, marital status, familial status, or any other basis prohibited by applicable law be excluded frorn participation in, be denied the benefits af, or be subjected to discrimination under, and program ar activity fttnded in whole or in part with Community Developrnent Block Grant Program funds. B. Specific (not exclusive) Discriminatory Actions Prohibited: The Provider rnay not directly or through contractual or other arrangements, an the ground of race, color, creed, religion, sexual orientation, ancestry, natior►al origin, marital status, familial status, age handicap, disability, sex or ariy other basis prohibited by applicable law: (1) Deny any facilities, services, iinancial aid, or other benefits provided under the program or activity. (2) Provide any facilities, services, financial aid, or other benefits, which are different or are provided in a different farm 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 pracess related ta receipt of any sezvice or benefit under the program or activity. (4) Restrict in any way access ta, or the enjoyment of any advantage or privilege enjoyed by others in connection with facilities, services, financial aid ar 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 ar canditian which the individual must meet in arder to be provided any facilities, services, or other benefit provided under the pragram or activity. (6) Deny any person with the legal right to work an opportunity to participate in a program or activity as an ernployee. C. Business and EmpCoyment Opportunities for Lower Income Residents, Women-Owned Business Enterprises, and Minority-Owned Susiness Enterprises The Pravider shall confonm with the rules and regulations set farth 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, oppartunities far training and ernplayment be given to lower income residents af 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 cantractor must, before signing the contract, provide a preliminary statement of the workforce, needs and plans for possible training and ernployment of lawer incarne persans. When an Operating Agency utilizes the bidding procedure to let a bid, the invitation or solicitation for bids shall advise prospective contractors 15 of the requirements of Section 3 of the Housing and Urban Develapment Act of 1968, as amended, and the clause shall be inserted as a component part �f any contract or subcontract. Flease see Appendix 3. If an Operating Agency solicits or requests an invitation for bids, every effort feasible will be made ta contact minority-owned and women-owned business �nterprises for a respanse to the solicitation or invitatian far bidders. D. Nondiscriminatio�z in Federally Assisted Programs The Provider shall comply with Title VI of the Civil Rights Act of 1964 (PL 88-352, 42 USC 2000d et seq.) and the Fair Housing Act (42 USC 3501 l9, 31). In accordance with City policy and Title VI of the Civil Rights Act of 1964 (PL 8$-352), in the sale, lease of other transfer of land acquired, leased or impraved with assistance pravided under this Agreement, the deed or lease for such transfer shall contain a covenant prohibiting discrimination upon the basis �f race, colar, 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 occupancy af such land or any irnprovernents erected or to be erected thereon. The Provider will comply with Title VIII of the Civil Rights Act oi 1968 (PL 90-284, 42 USC 364� et seq.) as amended and will administer all pragrams and activities related to housing and camrnunity development in a manner to affirmatively further fair housing. SECTION IX: CONFLICT OF INTEREST The Provider covenants that na persan, under its employ wha presently exercises any functians or responsibilities in connection with Community Development Block Grant Program, HOME Investment Partnership Program and State Housing Initiatives Program funded activities, has any personal financial interests, direct or indirect, in this Agreement. The Provider covenants that in the performance of this Agreement, no person having such conflicting interest shall be employed. The Provider covenants that it will comply with all provisions of 24 CFR 570.611 "Conflict of Interest", and the State Statutes governing conflicts of interest. The Pravider shall disclose, in writing, to the City any passible canflicting interest or apparent imprapriety 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 an both parties. SECTION X: INDEMNIFICATYON AND INSURANCE The Provider shall indernnify and hold harmless the City from any and all claims, liability, losses and causes of action, which may arise out af 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 oi Insurance. 16 All liability insurance coverage shall be approved by the City prior to the release of any funds under this Agreement. Generally, the amount of coverage necessary wauld be at a minimum of $300,000. Further, in the event evidence of the required insurance is not forwarded to the City within thirty (30) days after the execution af this Agz�eement, this Agreement may be terminated at the City's option and any payrnents then due may be permanently withheld by the City and the City will have no furth�r obligation under this contract or any Subr�cipient contract. SECTION XI; REPORTING AND EV,ALUATION REOUIREMENTS Maintaining credibility for the connx�unity development effort rests heavily on the ability to produce an impact in low/moderate income areas, thraugh progress in accomplishing scheduled activities. An efFective method for maintaining project progress against a previously established schedule is through project evaluation and reporting, which will consist of both written reports and staff discussions on a regular basis. The Provider also assures prompt and efficient subrnissian af the following: A. Monthl Re orts - are due na later than the tenth (lOth) day of the succeeding month and shall include the request far payment when applicable. A montl�l re ort is due re ardless if an funds have 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: 1. The "Financial Report & Implernentation Surrunary" Form, which shall include the request for payment and documentati�n, as applicable. 2. The "Program Activity Report" 3. The "Request for Reimbursement" Foml 4. Instructions for Appendix 2 Farms B. Final Evaluation - Within thirty (30) days of contract completion, a final report documenting how the Statutory National Objective and the eligibility requirements were met, nnust be submitted by the Provider to the City's Housing Division for review and approval. The conterns a� it shall include a cumulative total of the data submitted during the program's aperation. Further, such report shall include statistical findings, which depict program efficiency; i.e., the number of dollars spent, including non-CDBG funding sources, to render actual service to program recipients, and an averall evaluation of the prograrn'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 prajecdactivity is cansidered "closed-out". C. Other Re ortin Re uirements may be required by the City in the event of program changes, need for additional infarmation or documentation and/or legislation amendments. The Provider shall be informed, in writing, if any changes become necessary. 17 Reports ar�d/or requested documentation nat received by the due date, shall be considered delinquent, and may be considered by the City as sufficient cause ta suspend CDBG, HOME, and SHIP payments to the Pz�ovider. SECTIUN 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, dacumentation, and any other data relating to all matters cavEred by the Agreement. An annua.l 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-11 p 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 disallawed costs identified in an audit after such closeaut. SECTI�N XII�: REVERSION OF ASSETS The Provider sk►all transfer to the City any CDBG, HOME ar SHiP funds on hand (including program income) or any accounts receivable attributable to the use of CDBG, HOME or SHIP funds shauld the agency close its daors. 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 �xpiratian 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 nnarket value of the property less any portion of the value attributable to expenditures af non-CDSG, HOME or SHIP funds for the acquisitian 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 administratian. Additianally, the Provider will carnply with all state and local laws and ordinances hereto applicable. SECTION XV: ADDITIONAL CONDITI�NS AND COMPENSATION It is expressly understood and agreed by the parties hereto that rnonies 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 �'lorida rules and regulations. It is expressly understood and agreed that in the event of curtailment or nan-productian of said federal grant funds, that the financial sources necessary to continue to pay the Provider compensation will not be ts available and that this Agreement will thereby terminate effective as of the time that it is determined tY�at said funds are no longer available. In the event of such determination, tki.e Pr�vider 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 af this Agreement. 19 �a. �,�,,�.�,,,. IN 'yVITNESS WHEREOF, the parties hereto have caused tlais Agreement to be ex�cu�ted by their duly authorized officials on the day and date first above indicated. Couzitersigned: -�.� v �-�� Frank V.. Hibbard Mayoz Conti.nued: Approved as to form: La.ura Mahany Assistant City Attorney, II TA,MPA BAY CONIlVIUNITY DE�ELOPMENT CORPURATIUN ; � w � � �� : � ."�� 9-za- �i Date ATTEST: �i � �r �� /. I, �. :�. � - � �• z�. �! Date G'YTY UF CLEARWATER, FLOR[DA 8,�: � .,�� �.� il am B. Home, II City Manager Attest: zo � a�u-►t��, L'� Rasemarie Call, MPA, CMC City Clerk ��� �,LaF rNf�i�� �r�a�� ,c `�� 1� � i� � � ".. �� �r� �� "��''��"ER�c APPENDIX 1 Provider's Program Budget Tampa Bay Community Development FY 11-12 ..�i �PUt 'P';��;,Ci:�""I;�:^.I^'Y 'C��c �!7'. ) NINI ! tl-5• :.1�' f .f.�..��,iMn'il",�, „.,1�')'Y�'#1'"�'-M1 W 4 :i! :TC1...... T,�d�. — ���� t 't",,_i �_ "�,. 9: ��yx,,*a7:� ,�„h��, ia � � "i�� $gj -- � &..'d, - � �_'-'�`�, J (.. �� ;i� - :�'�'I�'' "'j��'r' ^i�'"�h�"via.�, ��;r.; A:���"i� :�.{..�. �"-,.'i7=,F'�,,�.�J�hiy�� �' ?Ni6'�'"_�i��r,i. �� _ ,.�,id..li�. j„Tyi'�.;.]*��I �., "y' .���, .:a,itill� °ae'�,.lS1-� �p� t„ ;'; iJ�,!i � ''� irg �6 �"o-l;' ��i.:.�° 'a ' 4 . � i ''1��, s' �.�� �� fwii;f3""; :n .I ,�, j�.,.��",•�;�'�;:..�y°3�s.��+_�Ur._wyi�_,� :d �,�I�����mF p, w;?.�P,,q 1';� ,k' n,- �<r��„_t;�-, i,,. �i i. � F } ' �.., —,, �'"" iY, � �o a� ' � ���( �, �j ,. �. � ; �;i -i.'� �a�r� �' :;� - � a i �:{:� � S' -�� i,���� s,� Nt����.p � ,'.:�� i�,;:;.. �i.r ��,i�i����i 9i � �,�;1 r, , --, : �a��:�i t'r .h �;.��'" J' I �1 ' j . �}:',.; �•!:, �'; ' � �i�i �. + �,;F r ti' �� �,; a+de w°,�P;� � a,7�q„'.�;a��� ,�� ;�� s;.���� +,�, �+� � `,r t y � � $ ,:,, � � �. � ?� � � � �7 a,.:, " �, �.7.. t'i N���i��„ A� a�, � �l� � � �r', d t ,� +' !1 , �. ��,�..I� q ,� �: t , j., 'i „.�. �� � ' �� J�e'{ d � y� ;E, ; v�,, � �� �6�;;.;°;,d i;�: r� �: �, u�.,,:::. L9 1�� ,1 :�� �,i d ti ,I F :I �'I. YiN. �,4�y ����' .��� ��gf i'� } :d+i ';1{�i,�i E';ri:i"�+f'J��1"7�;t:��q;'i ' 'i '� y¢ �.,� � w_��?�_ �:��'���:'!�.1� •��. 'vdd��? e�,:; ,�,��I� ��• �.a"�iii ;�r�'.= ��;���i,�, _�IMy� 4 �' s'7r13`� F�s' li w , �7d1,� d.��W . .. �.�� � I��(.�.;�:�'��."v�,�:a.n�E�:��a�i� �.�t3.�li, :.�.� . � " �. . � i �.; ��-_— i'''-: � r rc ! "a,,1a i1.•,: l�l1,��. 1 I, : - ---. � r � - — ----- --- —• ■ : - � � • : � : � r • � - • -_ ��`����� " � �' �1�='�� , APPENDIX 1 Provider's Program Implementation Schedule Tampa Bay Community Development FY 11-12 Planned �ct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Implementation I Steps APPENDIX 3 EQUAL 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 modificatian thereof, as defined in the regulations of the Secretary of Labor at 41 CFR Chapter 60, which is paid for in whole or in part with funds obtained from the Federal Government ar borrowed on the credit of the Federal Government pursuant to the grant, contract, loan insurance, or guarantee, or undertaken pwrsuant to any Federal program involving such grant, contract, loan, insurance, or guarantee, the following Equal Opportunity clause: During the perfarmance af this contract, the contractor agrees as follows: (1) The contractor will not discriminate against any employee or applicant for employment because of race, color, religian, sex, or national origin. The contractor will take affirrnative action ta ensuxe that applicants are employed, and that ernployees are treated during employznent without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be lirnited to the following: employment, upgrading, demotion, or transfer; recruitrnent or recruitment advertising; layoff or ternunatian; rates of pay ar other forms of compensation; and selection of training, including apprenticeship. The contractor agrees to post in a canspicuous place, available to employees and applxcants far employment, notices to be provided setting forth the pravision of this nondiscrimination clause. (2) The cant�actor will, in all solicitations or advertisernents for �mployees placed by or behalf of the contractor, will state that a11 qualified applicants will receive consideration for ernployrnent without regard to race, color, religion, sex or national origin. (3) The cantractor will send to each labor union or representative of workers with which he has a cvllective bargaiiung a�-e�menl or �ther conlracl ur underslanding, a notice to be pravided 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 Secreta.ry 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 Labar, or pwrsuant thereto, and will permit access to his books, records, and accaunts 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 contractor's non-campliance with the non-discrimination clauses of this contract or with any of the said rules, regulations, or arders, this contract may be canceled, terminated, or suspended in whale or in part and the contractor may be declared ineligible for further governrnent r 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 c�ntractor will include the portion af the sentence immediately preceding paragraph (1), and the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exernpted by rules, regulations, or orders of the S�cretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractar 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 pravided, however, that in the event a contractor bec�mes involved in or is threatened with, litigation with a subcontractor ar v�ndor as a result of such direction by the administering agency, the can�actar may request the United States to enter inta such litigation to protect the interest of the United States. The applicant further agrees that it will be bound by the abave Equal Opportunity clause with respect to its owr� employment practices when it pa.rticipates in federally assisted canstruction work: provided that, if the applicant so participating is a State or local gavernrnent, 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 cantract. The applicant agrees that it will assist and cooperate actively with the administering agency and the Secretary af Labor in obtaining th� cam.pliance of contractors and subcontractors with the Equal Opportunity clause and the rules, regulations, and relevant arders of the Secretary of Labor, that it will furnish the administering agency and the Secretary of Labor such infortnation as they rnay require for the supervision of such compliance, and that it will atherwise 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 cantract modification subject ta Executive Order 11246 of September 24, 1965, with a contractar debarred from, or who has not demonstrated eligibility for, government contracts and federally assisted construction contracts pursuant to the Executive Order and will carry aut such sanctions and penalties for vi�lation of the equal opportunity �lause as may be imposed upon contractors and subcontractars by the administering agency af 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 camply with these undertakings, the adxninistering agency may take any or all of the %llowing actians: 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 Departm�nt of Justice for appropriate legal praceedings. 2 FEDER.AL - SECTION 3 CLAUSE A. The work ta be perfarrned under this contract is on a project assisted urxder a program praviding direct Federal financial assistance from the Departrnent of Housing and Urban Development and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 196$, 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 far work in connection with the project be awarded ta business concerns which are located in, or owned in substantial part by persons residing in the area of the project. B. The parties ta this contract will comply with the provision of said Section 3 and the regulations issued pursuant thereto by the Secretary of Housing and Urban Development set forth in 24 CFR 135, and all applicable rules and orders of the Department issued th�re under prior to the execution of this contract. The parties to tlus contract certify and agree that they are under no contractual �r other disability, which would prevent them from complying with these requirements. C. The cantractor will send to each labor organization or representative of work�rs with which he has a collective bargaining agreement or other cantract ar understanding, if any, a notice advising the said labor arganizatian af workers' representative of his commitments under this Section 3 Clause and shall post copies of the natice in conspicuous places available to employees and applicants for employment or training. D. The contractor will include this Section 3 Clause in every subcontract far work in connection with the project and will, at the direction of the applicant for or recipient of �'ederal fmancial assistance, take appropriate action pursuant to the subcontract upon a finding that the subcontractar is in violation of regulations issued by the Secretary of Housing and Urban Develapment, 24 CFR 135 The contractor will not subcantract with any subcontractor where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR 135, and will not let any subcontract unless the subcontractor has first pravided it with a preliminary statement of ability to camply with the requirements of these regulations. E. Compliance with the provisions of Section 3, the regulations set fartl� in 24 CFR 135, and all applicable rules and arders af the Department issued hereunder prior to the execution of the contract, shall be a condition of the federal financial assistance pravided to the project, binding upon the applicant or recipient for such assistance, its successors, and assigns. Failure ta 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 laan agreernent or cantract th�rough which Federal assistan.ce is provided, and to such sanctions as are specified by 24 CFR 135. 3 ;,�.