1996-118-RES WHEREAS, CITY COUNCIL DID HERETOFORE ON THE 10TH DAY OF JUNE 1996

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the period of this Contract. Audits performed under Subsection A of this Article 18 are subject to review and resolution by Department or its authorized representative. 18.2 Notwithstanding anything in Article 18.1 to the contrary, Department reserves the right to conduct an annual financial and compliance audit of funds received and performances rendered under this Contract. Administrator agrees to permit Department, or its authorized representative, to audit Administrator's records and to obtain any documents, materials, or information necessary to facilitate such audit. 18.3. Administrator understands and agrees that it shall be liable to Department for any costs disallowed pursuant to financial and compliance audit(s) of funds received under this Contract. Administrator further understands and agrees that reimbursement to Department of such disallowed costs shall be paid by Administrator from funds which were not provided or otherwise made available to Administrator under this Contract. 18.4 Administrator shall take all necessary actions to facilitate the performance of such audit or audits conducted pursuant to this Article 18 as Department may require of Administrator. 18.5. All approved HOME audit reports shall be made available for public inspection within thirty (30) days after completion of the audit. ARTICLE 19 Environmental Clearance Requirements The Environmental effects of each activity carried out with HOME funds must be assessed in accordance with the provisions of the HOME Implementation Manual, National Environmental Policy Act of 1969 and thi: related authorities listed in HUD's implementing regulations at 24 CFR Parts 50 and 58. Such assessment shall be performed by Administrator with the assistance of Department. The assessment must be satisfactory to Department at its sole discretion. ARTICLE 20 Labor Standards All laborers and mechanics (except laborers and mechanics employed by Administrator while acting as the principal Administrator on the project) employed in the rehabilitation of a project assisted under this Contract, that contains 12 or more dwelling units, shall be paid wages at rates not less than those prevailing on similar rehabilitation projects in the locality, if such a rate category exists, or the appropriate rate as determined by the Secretary of Labor in accordance with the Davis-Bacon Act (40 U .S.C. 276a-5). Contracts involving their employment shall be subject to the provisions, as applicable, of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333). Construction contractors and subcontractors must comply with regulations issued under these Acts and with other federal laws and regulations pertaining to labor standards and HUD Handbook 1344.1 (Federal Labor Standards Compliance in Housing and Community Development Programs), as applicable. Page 9 of 17 HOME Contract No. 535035 Owner Occupied Assistance