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1989-008-RES WHEREAS, CITY COUNCIL IN RES 88-037 PASSED RESOLUTION NO. 89-008 WHEREAS, the City Council of the City of Paris did heretofore in Resolution No. 88-037, passed and adopted on the 11th day of April, 1988, and revised in Resolution No. 88-102, passed and adopted on the 10th day of October, 1988, authorize the processing of an application for grant from the Texas Department of Commerce for the purpose of reha- bilitation of substandard units in compliance with the Texas Rental Rehabilitation Program; and, WHEREAS, the City Manager of the City of Paris was authorized to execute and process an application for $300,000.00, being a 100% grant; and, WHEREAS, the Texas Department of Commerce has offered a contract for a rental rehabilitation program, being Contract No. R88006 with an effective date of January 2, 1989, being attached hereto as Exhibit A; and, WHEREAS, the form of the contract with Texas Department of Commerce is attached hereto as Exhibit A, and such form should be approved; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS: 1. That the form of Contract No. R88006, in the total amount of $300,000.00 with the Texas Department of Commerce, attached hereto as Exhibit A is in all things approved. 2. That the Mayor of the City of Paris, Eric S. Clifford, be, and he is hereby authorized and directed to execute on behalf of the City of Paris the contract in the form of Exhibit A attached hereto. Passed and adopted this January, 1989. Eric ATTEST: ~~..~~~ Mattie Cunningham, C ty C er j;Z;;:; T. K. Haynes, City Attorney STATE OF TEXAS ~ COUNTY OF LAMAR ~ I, Mattie Cunningham, hereby certify that I am the duly appointed, qualified and acting City Clerk of the City of Paris, Paris, Texas, and as such I have in my possession in the Office of City Clerk of the City of Paris, all of the ordinances, resolutions and minutes of the City Council of the City of Paris, and that the foregoing Resolution No. 89~008 ,is a true and correct copy of the original of said instrument, which was passed by the City Council on the 2nd day of February, 1989. .~ ~~~\.'..., '/V"', Mattie cunni~ity C er City of Paris, Paris, Texas TEXAS DEPARTMENT OF COMMERCE CONTRACT FOR RENTAL REHABILITATION PROGRAM STATE OF TEXAS ] COUNTY OF TRAVIS ] SECTION 1. PARTIES TO CONTRACT This contract and agreement is made and entered into by and between the Texas Department of Commerce, an agency of the State of Texas, hereinafter referred to as "Department", and the City of Paris, hereinafter referred to as "Contractor". The parties hereto have severally and collectively agreed and by the execution hereof are bound to the mutual obligations and to the performance and accomplishment of the tasks described herein. SECTION 2. CONTRACT PERIOD This contract and agreement shall commence on January 2, 1989, and shall terminate on January 1, 1991, unless otherwise specifically provided by the terms of this contract. SECTION 3. CONTRACTOR PERFORMANCE Contractor shall conduct, in a satisfactory manner as determined by Depart- ment, a rental rehabilitation program under Section 17 of the United States Housing Act of 1937, 42 U.S.C. 14370, hereinafter referred to as the Act. Contractor shall perform all activities in accordance with the terms of the Performance Statement, hereinafter referred to as Exhibit A; the Applicable Laws and Regulations, hereinafter referred to as Exhibit B; the Schedule for Committing Rental Rehabilitation Funds, hereinafter referred to as Exhibit C; the assurances, certifications, and all other statements made by Contractor in its application for the project funded under this contract; and with all other terms, provisions, and requirements set forth in this contract. SECTION 4. DEPARTMENT OBLIGATIONS A. Measure of Liability In consideration of full and satisfactory performance of the activities referred to in Section 3 of this contract, Department shall be liable for actual and reasonable costs incurred by Contractor during the contract period for performances rendered under this contract by Contractor, subject to the limitations set forth in this Section 4. 1. It is expressly understood and agreed by the parties hereto that Depart- ment's obligations under this Section 4 are contingent upon the actual PAGE 1 OF 11 EXHIBIT A receipt of adequate sta.e and/or federal funds to meet D~~artment's liabilities under this contract. If adequate funds are not available to make payments under this contract, Department shall notify Contractor in writing within a reasonable time after such fact is determined. Department shall terminate this contract and will not be liable for failure to make payments to Contractor under this contract. 2. Department shall not be liable to Contractor for any costs incurred by Contractor, or any portion thereof, which has been paid to Contractor or is subject to payment to Contractor, or has been reimbursed to Contractor or is subject to reimbursement to Contractor by any source other than Department or Contractor. 3. Department shall not be liable for any costs incurred by Contractor which are not allowable costs, as set forth in Section 6 of this contract. 4. Department shall not be liable to Contractor for any costs incurred by Contractor or for any performances rendered by Contractor which are not strictly in accordance with the terms of this contract, including the terms of Exhibit A, Exhibit B, and Exhibit C of this contract. 5. Department shall not be liable to Contractor. for any costs incurred by Contractor in the performance of this contract which have not been billed to Department by Contractor within sixty (60) days following termination of this contract unless otherwise provided for in the Project Completion Report(s) referred to in Section 8(C) of this contract. 6. Department shall not be liable for costs incurred or performances rendered by Contractor before commencement of this contract or after termination of this contract. 7. The total amount for all payments for eligible administrative costs, as specified by Department, incurred by Contractor under this contract shall not exceed Eighteen Thousand Seven Hundred Fifty and No/100 Dollars ($18,750.00). B. Excess Payments Contractor shall refund any sum of money which has been paid to Contractor under this contract, which Department determines has resulted in overpayment to Contractor, or which Department determines has not been spent by Contractor strictly in accordance with the terms of this contract. Such refund shall be made by Contractor to U.S. Department of Housing of Urban Development (HUD) within thirty (30) working days after such refund is requested by Department. C. Limit of Liability Notwithstanding any other provision of this contract, the total of all amounts obligated by Department under this contract shall not exceed the sum of Three Hundred Thousand and No/100 Dollars ($300,000.00). SECTION 5. METHOD OF PAYMENT A. Program Funds: HUD's Cash and Management Information (e/MI) system for the Rental Rehabilitation Program, Notice CPD 88-09, issued March 8, 1988, and any modifications thereto, shall be used as the method for disbursement of rental rehabilitation program funds obligated to Contractor under this contract. PAGE 2 OF 11 Disbursement is condi.,oned upon the submission of sat,_,actory information by Contractor about the project and compliance with other procedures specified by HUD. HUD will disburse rental rehabilitation funds obligated by Department under this contract by electronic funds transfer to the depository institution designated by Contractor. Amounts requested by Contractor will be disbursed by HUD as closely as possible to the time they are needed by the Owner to pay eligible rehabilitation costs and such amount shall immediately be disbursed by Contractor and Owner in payment for eligible costs. Contractor shall establish a rental rehabilitation deposit account at designated depository bank and shall not commingle any private or publiC funds, whether or not such funds are to be used to supplement Rental Rehabilitation Program funds, in the same account. Contractor expressly understands and agrees that Department shall not be liable for any damages, claims, or demands which may be asserted as a result of any action, or failure to act, by HUD in discharge of its responsibility under the CIMI system. B. Administrative Funds: Contractor shall submit a request for reimbursement on a form specified by Department, no more frequently than bi-weekly for costs incurred in administering this contract. C. Notwithstanding the provisions of Section 5{A) ~f this contract, it is expressly understood and agreed by the parties hereto that payments under this contract are contingent upon Contractor's full and satisfactory performance of its obligations under this contract and that Department may, at its sole option and in its sole discretion, withdraw and reallocate rental rehabil itation funds- provided-.under this contract based.on Contractor's. noncompliance with the terms of this contract, applicable laws or regulations including recipient's failure to meet the schedule for committing rental rehabilitation amounts as set forth in Exhibit 0 of this contract. D. It is expressly understood and agreed by the parties hereto that any right or remedy provided for in this Section 5 or in any other provision of this contract shall not preclude the exercise of any other right or remedy under this contract or under any provisions of law, nor shall any action taken in the exercise of any right or remedy be deemed a waiver of any other rights or remedies. Failure to exercise any right or remedy hereunder shall not constitute a waiver of the right to exercise that or any other right or remedy at any time. UNIFORM ADMINISTRATIVE REQUIREMENTSt COST PRINCIPLES, AND ALLOWABILITY OF COS S A. Contractor shall comply with Office of Management and Budget (OMB) Circular A-102 as supplemented by the rules promulgated.by the Office of the Governor at 7 Tex. Reg. 3172 under the Uniform Grant and Contract Management Act of 1981 {TEX.REV.CIV.STAT.ANN.art.4413 (32g).), hereinafter referred to as the Management Standards, except to the extent that Department establishes variations from the Management Standards in accordance with Section 6 of such Act. SECTION 6. B. Except for administrative costs, the allowability of costs incurred for performances rendered hereunder shall be determined in accordance with OMB Circular A-122, subject to the following limitations: PAGE 3 OF 11 Eligible rehabilitation costs shall include only: 1. The actual rehabilitation costs necessary to: (i) correct substandard conditions as referred to in 24 CFR 511.10(c}(2)j (ii) make essential improvements including energy-related repairs and improvements to permit the use of rehabilitated projects by handicapped persons; (iii) repair major housing systems in danger of failurej and 2. Other costs (soft costs) that are associated with the rehabilitation or rehabilitation financing and are not for services provided or costs incurred by the Contractor. Such soft costs may include (but are not limited to) those costs referred to in 24 CFR 511.10(g)(2). C. The allowability of costs incurred in administering this contract shall be determined in accordance with OMB Circular A-B7 as supplemented by the rules promulgated by the Office of the Governor under the Uniform Grant and Contract Management Act of 19B1. SECTION 7. MAINTENANCE, RETENTION~ ACCESSIBILITY AND PUBLIC DISCLOSURE OF RECORDS A... Contractor shall maintain records in such form and such manner as may be prescribed by HUD or Department that clearly document performance under each program requirement set forth in Subpart B of 24 CFR 511 and that include, at a minimum, (i) records sufficient to meet HUD.requirements for the disburse- ment of rental rehabilitation funds pursuant to 24 CFR 511.74; (ii) data on the" racial;'" ethnic -and "gender characteri st ics "'Gf -tenants, applicants for tenancy, and owners of the rehabilitated projects; and (iii) data indi- cating the race and ethnicity of households displaced as a resu~t of program activities, and, if available, the address and census tract of the housing units to which each displaced household is relocated. Records required to be maintained under this subsection A shall be retained for a period of three years from the date of final closeout of the rental rehabilitation grant award to the State of Texas under which monies for this contract were made available. B. Contractor shall maintain fiscal records and supporting documentation for all expenditures of funds made under this contract in a manner which conforms to HUD requirements, the Management Standards (except to the extent that Department establishes variations from the Management Standards in accordance with Section 6 of such Act), and this contract. Contractor shall comply with the retention and custodial requirements for records as set forth in Attachment C of OMB Circular A-I02, as supplemented by Section 5.154 of the Management Standards (except to the extent that Department establishes variations therefrom). C. Contractor shall give the United States Department of Housing and Urban Development, the Inspector General, the Comptroller General of the United States, the Auditor of the State of Texas, and Department, or any of their duly authorized representatives, access to and the right to examine, excerpt and transcribe all books, accounts, records, reports, files, and other papers, things, or property belonging to or in use by Contractor pertaining PAGE 4 OF 11 to this contract. Sucn rights to access shall continue dS long as the records are retained by Contractor. Contractor agrees to maintain such records in an accessible location. Contractor shall ensure that its agreements with owners, as defined in Section I of Exhibit A of this contract, require such owners to provide similar access to their records pertaining to the use of funds provided under this contract. D. Contractor shall provide for full and timely disclosure of records and documents relating to its rental rehabilitation programs consistent with applicable Federal, State and local laws regarding personal privacy and obligations of confidentiality. Documents relevant to a Contractor's program shall be made available at Contractor's office during normal working hours for citizen review upon request. E. Contractor shall include the substance of this Section 7 in all subcon- tracts. SECTION 8, REPORTING REQU1REMENTS A. Contractor shall submit to Department such reports on the operation and performance of its rental rehabilitation program in such format and at such times as may be required by Department inc~uding,. but not.limited to, manage- ment and annual performance reports containing such information as Department may prescribe. 8. Contractor shall submit a Project Completion Report to Department no' later than sixty (60). days after the'.completion.ofeach project undertaken pursuant to Exhibit A of this contract. The Project Completion Report shall be in a format prescribed by Department and shall include a final Project Completion Report of all activities performed under this contract. C. In addition to the limitations on liability otherwise specified in this contract, it is expressly understood and agreed by the parties hereto that if Contractor fails to submit to Department in a timely and satisfactory manner any report required by this contract, Department may, at its sole option and in its sole discretion, cause any or all payments otherwise due hereunder to be withheld by placing a stop payment order with HUD. If Department places a stop payment order, it shall notify Contractor in writing of its decision and the reasons therefore. A stop payment order placed pursuant to this subsection shall continue in full force and effect until such time as Department determines that the delinquent obligations for which funds are withheld are fulfilled by Contractor. SECTION 9. MONITORING Department reserves the right to perform periodic on-site monitoring of Contractor's compliance with the terms and conditions of this contract, and of the adequacy and timeliness of Contractor's performances under this contract. After each monitoring visit, Department shall prOVide Contractor with a written report of the monitor's findings. If the monitoring reports notes deficiencies in Contractor's performances under the terms of this contract, the monitoring report shall include requirements for the timely PAGE 5 OF 11 correction of such del .~iencies by Contractor. Failure -I Contractor to take action specified in the monitoring report may be cause for suspension or termination of this contract, as provided in Sections 17 and 18 of this contract. SECTION 10. INDEPENDENT CONTRACTOR It is expressly understood and agreed by the parties hereto that Department is contracting with Contractor as an Independent Contractor, and that Contractor, as such, agrees to hold Department harmless and to indemnify Department from and against any and all claims, demands, and causes of action of every kind and character which may be asserted by any third party occur- ring or in any way incident to, arising out of, or in connection with the services to be performed by Contractor under this contract. SECTION 11. SUBCONTRACTS Contractor may subcontract for the performances described in this contract without obtaining Department's prior written approval. Contractor, in subcontracting for any performances described in this contract, understands and agrees that in entering into such subcontracts, Department is in no way liable to Contractor's subcontractors.. €ontractor further understands and agrees that it shall ensure that the performances rendered under all sub- contracts are rendered so as to comply with all the terms of this contract, as if such performances were rendered by Contractor. SECTION 12. CONFLICT OF INTEREST ,- - .. .', A. Contractor covenants that neither it nor any member of its governing body presently has any interest or shall acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of this contract. Contractor further covenants that in the performance of this contract no person having such interest shall be employed or appointed by Contractor. B. No person (i) who is an employee, agent, consultant, officer, or elected or appointed official of Contractor and who exercises or has exercised any functions or responsibilities with respect to assisted rehabilitation activi- ties or (ii) who is in a position to participate in a decision making process or gain inside information with regard to such activities, may obtain a per- sonal or financial interest or benefit, direct or indirect, in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter. C. Contractor's employees, officers, and/or agents shall neither solicit nor accept gratuities, favors, or anything of monetary value from subcontractors, or potential subcontractors. SECTION 13. SECTARIAN ACTIVITY None of the performances rendered by Contractor under this contract shall involve, and no portion of the funds received by Contractor under this contract, shall be used in support of any sectarian or religious activity, PAGE 6 OF 11 nor shall any facili..cs used in the performance of tl. J contract be used for sectarian instruction or as a place of religious worship. SECTION 14. LEGAL AUTHORITY A. Contractor assures and guarantees that Contractor possesses the legal authority to enter into this contract, receive funds authorized by this contract, and to perform the services Contractor has obligated itself to perform hereunder, B. The person or persons signing and executing this contract on behalf of Contractor, or representing themselves as signing and executing this contract on behalf of Contractor, do hereby warrant and guarantee that he, she or they have been duly authorized by Contractor to execute this contract on behalf of Contractor and to validly and legally bind Contractor to all terms, perform- ances, and provisions herein set forth. C. Department shall have the right to suspend or terminate this contract if there is a dispute as to the legal authority of either Contractor or the person signing this contract to enter into this contract or to render per- formances hereunder, Contractor is liable to Department for any money it has received from Department for performance of the.provisions of this contract, if Department has suspended or terminated this contract for reasons enumer- ated in this Section 14, SECTION 15. LITIGATION AND CLAIMS . '.. Contractor shall give Department immediate notice in writing of 1) any action, including any proceeding before an administrative agency, .filed against Contractor arising out the performance of any subcontract hereunder; and 2) any claim against Contractor, the cost and expense of which Contractor may be entitled to have reimbursed by Department. Except as otherwise directed by Department, Contractor shall furnish immediately to Department copies of all pertinent papers received by Contractor with.respect to such action or claim. SECTION 16, CHANGES AND AMENDMENTS A. Except as specifically provided otherwise in this contract, any alter- ations, additions, or deletions to the terms of this contract shall be by amendment hereto in writing and executed by both parties to this contract. B. It is understood and agreed by the parties hereto that performances under this contract must be rendered in accordance with the Act, the regulations promulgated under the Act, the assurances and certifications made to Depart- ment by Contractor, and the assurances and certifications made to the United States Department of Housing and Urban Development by the State of Texas with regard to the operation of the Texas Rental Rehabilitation Program (TRRP). Based on these considerations, and in order to ensure the legal and effective performance of this contract by both parties, it is agreed by the parties hereto that the performances under this contract are amended by the provi- sions of the TRRP Implementation Manual and any amendments thereto and may further be amended in the following manner: Department may from time to time during the period of performance of this contract issue policy directives PAGE 7 OF 11 whi ch serve to estab Ii sh, interpret, or cl arify perfo"llance requi rements under this contract. Such policy directives shall be promulgated by the Director of the Texas Community Development Program in the form of TRRP issuances, shall have the effect of qualifying the terms of this contract and shall be binding upon Contractor, as if written herein, provided however that said policy directives and any amendments to said Manual shall not alter the terms of this contract so as to release Department of any obligation specified in Section 4 of this contract to reimburse costs incurred by Contractor prior to the effective date of said amendments or policy directives. C. Any alterations, additions, or deletions to the terms of this contract which are required by changes in Federal or state law or regulations are automatically incorporated into this contract without written amendment hereto, and shall become effective on the date designated by such law or regulation. SECTION 17. SUSPENSIDN Notwithstanding the provisions of Texas Civil Statutes, Article 601f, in the event that Contractor fails to comply with any term of this contract, 'Department may, upon written notification to Contractor, suspend this con- tract in whole or in part and prohibit Contractor from incurring additional obligations of funds under this contract. Upon suspension of this contract by Department, Department may cause further payments to Contractor to be withheld by placing a stop payment order with HUD. A stop payment order -'p1 aced pursuant- to this sect i on shall continue in full force .and effect unt 11 such time as Department determines that the.delinquent obligations for which funds are withheld are fulfilled by Contractor. SECTION 18. TERMINATION A. Department shall have the right to terminate this contract, in whole or in part, at any time before the date of completion specified in Section 2 of this contract whenever Department determines that Contractor has failed to comply with any term of this contract. Department shall notify Contractor in writing prior to the fifteenth (15th) day preceding the date of termination of such determination; the reasons for such termination; the effective date of such termination; and in the case of partial termination, the portion of the contract to be terminated. B. Either of the parties to this contract shall have the right to terminate this contract, in whole or in part, when both parties agree that the continu- ation of the activities funded under this contract would not produce benefi- cial results conunensurate with the further expenditure of funds; provided that both parties agree, in writing, upon the termination conditions, includ- ing the effective date of such termination; and in the case of partial termi- nation, the portion of the contract to be terminated. C. Upon termination or receipt of notice to terminate, whichever occurs first, Contractor shall cancel, withdraw, or otherwise terminate any out- standing orders or subcontracts related to the performance of this contract or the part of this contract to be terminated, and shall cease to incur costs thereunder. Department shall not be liable to Contractor or to Contractor's creditors for costs incurred after termination of this contract. PAGE 8 OF 11 .0. Notwithstanding any exercise by Department of its, 19ht of suspension under Section 17 of this contract, or of early termination pursuant to this Section 18, Contractor shall not be relieved of any liability to Department of damages due to Department by virtue of any breach of this contract by Contractor. Department may cause payments to Contractor to be withheld until such time as the exact amount ~f damages due to Department from Contractor is agreed upon or is otherwise determined. SECTION 19. AUDIT A. Unless otherwise directed by Department, Contractor shall arrange for the performance of a financial and compliance audit of funds received under this contract, subject to the following conditions and limitations: 1. Contractor shall have an audit made in accordance with the Single Audit Act of 1984, P.L. 98-502 (hereinafter referred to as "Audit Act"), and OMB's Circular No. A-128, "Audit Requirements for State and Local Governments," 49 Fed.Reg. 50134 (Dec. 26, 1984), for any of its fiscal years in which Contractor receives $25,000.00 or more in Federal financial assistance. For purposes of this Section 19, "Federal financial assistance" means assistance provided by a Federal agency in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies,insurance, or direct appropriations, but does not include direct Federal cash assistance to individuals. It includes awards received directly from Federal agencies, or indirectly through other units of State and local governments. 2. . At the option of Contractor, each audit'requiredby..this section may cover either Contractor's entire operations or each department, agency, or establishment of Contractor which received, expended, or otherwise administered federal financial assistance. 3. Unless otherwise specifically authorized by Department in writing, Contractor shall submit the report of such audit to Department within thirty (30) days after the completion of the audit, but no later than one year after the end of the audit period. Audits performed under this Section 19 are subject to review and resolution by Department or its authorized representative. Resolution of findings shall be made within six (6) months after receipt of the audit report by Department. B. Contractor shall take such action to facilitate the performance of such audit or audits conducted pursuant to this Section 19 as Department of the U.S. Department of Housing and Urban Development (HUD) may require of Contractor. SECTION 20. ENVIRONMENTAL CLEARANCE REQUIREMENTS A. Contractor understands and agrees that by the execution of this contract Contractor shall assume the responsibilities for environmental review, decision-making, and other action which would otherwise apply to Department under Section 5304{f) of the Housing and Community Development Act of 1974, in accordance with and to the extent specified in 24 C.F.R. Part 58. In accordance with Section 58.77{b) of such regulations, Contractor further understands and agrees that Contractor shall handle inquiries and complaints from persons and agencies seeking redress in relation to environmental reviews covered by approved certifications. PAGE 9 OF 11 B. Contractor shal, ~omplete a written Finding of Ca.~~orical Exclusion, as applicable under 24 C.F,R. Section 58.35 (a), which cites the subsection of Section 58.35 (a) by which the activities or projects funded under this contract are categorically excluded from the National Environmental Policy Act requirements of 24 C.F.R. Part 58. Contractor shall then publish a Notice of Intent to Request Release of Funds in the manner prescribed in 24 C.F.R. Section 58.43. Contractor shall provide the public with at least seven (7) calendar days to comment on the Notice following its publication date. Finally, Contractor shall concurrently submit to Department the following documents: 1) a Request for Release of Funds form; 2) the written Finding of Categorical Exclusion described above; and 3) a Publisher's Affidavit for the Notice of Intent to Request Release of Funds notice. Upon receipt of such documents, Department must allow a 15 calendar days comments period to expire before it can formally release any project funds which are subject to the environmental review regulations. Contractor must comply with all other applicable environmental requirements as specified in Exhibit D of this contract. Contractor shall document its compliance with such other requirements in its environmental review file. SECTION 21. LABOR STANDARDS A. All laborers and mechanics (except laborers and mechanics employed by Contractor while acting as the principal contractor 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 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-276a-5), and 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). Contractor shall comply with regulations issued under these Acts and with other Federal laws and regulations pertaining to labor standards, as applicable. B. Contractor shall include the substance of this Section 21 in all subcon- tracts and shall require Owners to comply with said labor standards, if applicable, as a precondition to receiving rental rehabilitation funds under this contract. SECTION 22. ORAL AND WRITTEN AGREEMENTS A. All oral and written agreements between the parties to this contract relating to the subject matter of this contract that were made prior to the execution of this contract have been reduced to writing and are contained in this contract. B. The attachments enumerated and denominated below are hereby made a part of this contract, and constitute promised performances by Contractor in accordance with Section 3 of this contract: 1. Exhibit A,Performance Statement, 4 Pages 2. Exhibit B, Applicable Laws and Regulations, 3 Pages 3. Exhibit C, Schedule for Committing Rental Rehabilitation Funds, I Page PAGE 10 OF 11 WITNESS OUR HANDS EFFECTIVE January 2, 1989. Eric S. Clifford, Mayor City of Paris Approved and accepted on behalf of the Texas Department of Commerce. J. W. Lauderback, Executive Director Texas Department of Commerce This contract is not effective unless signed by the Executive Director of the Texas Department of Commerce or by his authorized designee. PAGE 11 OF 11 EXHIBIT A PERFORMANCE STATEMENT Contractor shall use rental rehabilitation funds to help support the rehabilitation of privately owned real property to be used for primarily residential rental purposes in order to help provide affordable, standard housing for lower income families and to increase the availability of housing units for the use of voucher and certificate. holders under Section 8 of the United States Housing Act of 1937. Contractor shall carry out eligible rehabilitation activities under the Texas Rental Rehabilitation Program ("TRRP") in a manner which shall comply with the requirements of this contract, including this Exhibit A. Sect ion 1. REHABILITATION OF PRIVATE PROPERTY Contractor shall rehabilitate substandard rental units by providing rental rehabilitation funds to each Owner for the project specified in Owner's rental rehabilitation program application. The amount of rental rehabilitation funds for any project shall not exceed $8,500 based on a sliding scale depending on the number of bedrooms in each unit, and shall not exceed 50% of the total cost of eligible rehabilitation costs with respect to the project unless Contractor applies for, and Department approves in writing, a higher amount for a project. The minimum level of rehabilitation of projects to be required for participation in the rental 'rehabili tatl on' program shall not be less than an average of $600 per dwelling unit per project for eligible rehabilitation costs. For purposes of this contract, including this Exhibit~, "Owner" means one or more individuals, corporations, partnerships, or other legal entities that hold valid legal title to the property to be rehabilitated. Sect i on II. LOWER INCOME BENEFIT At least 70% of the amount of rental rehabilitation funds provided under this contract shall be used for the benefit of lower income families. For purposes of this Section II, benefit for lower income families will be considered to occur only where dwelling units in projects rehabilitated with rental rehabilitation funds are initially occupied by such families after rehabilitation. "Lower income family. means a lower income family, as defined in 24 CFR 813.102. Section III. PRIMARILY RESIDENTIAL RENTAL USE Rental rehabilitation funds shall only be used to rehabilitate projects to be used for primarily residential rental uses. For purposes of this Section III, a project is used for primarily residential rental purposes if at least 51% of the rentable floor space of the project is used for residential rental purposes after rehabilitation, except that in the case of a two-unit building, at least 50% of the rentable floor space after rehabilitation must be used for residential rental purposes. Section IV. CORRECTION OF SUBSTANDARD CONDITIONS Rental rehabilitation funds shall only be used to rehabilitate projects PAGE 1 OF 4 which, before rehabilitation, have one or more substandard conditions. After rehabilitation, each unit in the project must, at a minimum, meet the Section 8 Housing Quality Standards for Existing Housing contained in 24 CFR 882.109. For purposes of this Section IV, substandard conditions are those housing conditions that do not meet applicable State or local housing codes or do not meet the Section 8 Housing Quality Standards. Section V. SELECTION OF ELIGIBLE NEIGHBORHOODS Rental rehabilitation funds shall only be used to assist the rehabilitation of projects located in neighborhoods (a) where the median income does not exceed 80% of the median income for the area, and (b) which meet the rent affordability standard set forth in 24 CFR 511.10(d)(2). Section VI. DISPLACEMENT OF LOWER INCOME FAMILIES Rental rehabilitation funds may be used to rehabilitate structures only if the rehabilitation of the structure will not'.cause the disp1acement of very low-income families by families who are not very low-income families. Displacement results if a lower income family is forced to move permanently from a project as a direct consequence of rehabilitation assisted under this contract. A lower income family may not be displaced without financial and advisory assistance sufficient to enable the family to obtain decent, safe, .and sanitary housing at an affordable rent (as defined in 24 CFR . Sll.10(h)(1)(ii)(B)). . Section VII. ADOPTION OF TENANT ASSISTANCE POLICY Before the establishment of a program account on behalf of Contractor under the CIMI system is authorized by Department, Contractor shall adopt and submit to Department a written tenant assistance policy (which shall be made available to the public upon request) concerning displacement, relocation assistance, and other assistance to tenants who reside or will reside in projects to be rehabilitated with funds provided under this contract. The tenant assistance policy shall be developed in accordance with the guidelines specified in 24 CFR 511.10(h)(2) and shall be subject to Department's approval. Section VIII. PROHIBITION AGAINST CONDOMINIUM CONVERSION Prior to the time Contractor agrees to provide rental rehabilitation funds to an Owner for an identifiable rehabflitation project, Contractor shall execute a legally enforceable agreement, containing remedies adequate to enforce its provisions, with the Owner under which the Owner agrees not to convert the units in the project rehabilitated with rental rehabilitation funds to condominium ownership or any form of cooperative ownership not eligible to receive rental rehabilitation funds (as provided in 24 CFR 511.10(c)) for at least ten (10) years beginning on the date on which the rehabilitation of the units in the project is completed. Section IX. DISCRIMINATION AGAINST SUBSIDIZED TENANTS Prior to the time Contractor agrees to provide rental rehabilitation funds to an Owner for an identifiable rehabilitation project, Contractor shall execute a legally enforceable agreement, containing remedies adequate to enforce its PAGE 2 OF 4 provisions, with the Owner under which the Owner agrees not to discriminate against prospective tenants on the basis of their receipt of, or eligibility for, housing assistance under any Federal, State or local housing assistance program or, except for a housing project for elderly persons, on the basis that the tenants have a minor child or children who will be residing with them, for at least ten (10) years beginning on the date on which the rehabilitation of the units in the project is completed. Section X. USE OF RENTAL REHABILITATION FUNDS FOR HOUSING FOR FAMILIES Contractor shall ensure that an equitable share of rental rehabilitation funds provided under this contract will be used to assist in the provision of housing designed for occupancy by families, including large families with children. This requirement will be deemed satisfied if at least 70% of the rental rehabilitation funds made available to Contractor is used to rehabilitate units containing two or more bedrooms and at least 15% are made available to rehabilitate units containing 3 bedrooms or more. Section XI. PRIORITY FOR USE OF RENTAL REHABILITATION FUNDS Contractor shall ensure that a priority will be given to rehabilitating projects containing units with substandard conditions that are occupied by very low-income families before rehabilitation. . ..". . .Section XII. . NONDISCRIMINATION AND EQUALOPPORTUNlTY Contractor agrees that rental rehabilitation funds will be made available in conformity with the nondiscrimination and equal opportunity requirements contained in the applicable laws and regulations which are set out in Sections I and III of Exhibit C of this contract. Failure of Contractor to meet the requirements of such applicable laws and regulations will result in appropriate corrective or remedial action as.provided for in this contract, in addition to any other sanctions authorized by law. Section XIII. AFFIRMATIVE MARKETING OF UNITS A. Before the establishment of a program account on behalf of Contractor under the CIMI system is authorized by Department, Contractor shall adopt and submit to Department written procedures and requirements for affirmatively marketing units in rehabilitated projects through the prOVisions of information regarding the availability of units that are vacant after rehabilitation or that later become vacant. Affirmative marketing steps consist of good faith efforts to provide information and otherwise to attract eligible persons from all racial, ethnic and gender groups in the housing market area to the available housing. At a minimum, the affirmative marketing requirements and procedures adopted must be in conformity with 24 CFR SI1.10{m){2){i). Contractor shall establish assessment procedures and criteria for its affirmative marketing program and shall annually assess such program to determine whether good faith efforts have been made to carry out such procedures and requirements, what objectives have been met, and what corrective actions are required. PAGE 3 OF 4 B. Prior to the time Contractor agrees to provide rental rehabilitation funds to an Owner for an identifiable rehabilitation project, Contractor shall execute a legally enforceable agreement, containing remedies adequate to enforce its provisions, with the Owner under which the Owner agrees to comply with the conditions of Contractor's affirmative marketing requirements and procedures adopted under subsection (A) of this Section XIII that shall be applicable for a period of seven years beginning on the date on which all the units in the project are completed. Section XIV. SELECTION OF PROPOSALS AND EVIDENCE OF FINANCIAL FEASIBILITY. Before the establishment of a program account on behalf of Contractor under the CIMI system is authorized by Department, Contractor shall develop and submit to Department written standards and procedures governing Contractor's selection of proposals of Owners which include but are not limited to, (i) the extent to which the proposal represents the efficient use of rental rehabilitation amounts and voucher and certificate assistance in connection therewith, and (ii) the extent to which the dwelling units involved will be adequately maintained and operated with rents at the levels proposed. Moreover, before selection of a proposal by Contractor occurs, Contractor must have evidence demonstrating the financial feasibility of the proposed rental rehabilitation project, including the availability of non-Federal governmental and private resources. PAGE 4 OF 4 ... EXHIBIT B THE APPLICABLE LAWS AND REGULATIONS Contractor shall comply with the Act specified in Section 3 of this contract and with the rules and regulations promulgated thereunder pertaining to the Rental Rehabilitation Program in 24 C.F.R. Part 511, as amended; the OMS Circulars and the Management Standards specified in Section 6 of this contract; and with all other federal, state, and local laws and regulations applicable to the activities and performances rendered by Contractor under this contract including but not limited to the laws, and the regulations promulgated thereunder specified in Sections 1 through VI of this Exhibit C. 1. CIVIL RIGHTS Title VI of the Civil Rights Act of 1964, (42 U.S.C. Sec. 2000d et seq.); 24 C.F.R. Part 1, "Nondiscrimination in Federally Assisted Programs of the Department of Housing and Urban Development - Effectuation of Title VI of the Civil Rights Act of 1964"; Title VIII of the Civil Rights Act.of 1968, "The Fair Housing Act of 1968" (42 U.S.C. Sec. 3601 et seq.); Executive Order 11063, as amended by Executive Order 12249, and 24 C.F.R. Part 107, "Nondiscrimination and Equal Opportunity in Housing under Executive Order 11063.". The failure or refusal of Contractor to comply with the requirements of Executive Order 11063 or 24 C.F,R. P~rt 107 shall be a proper basis'for the illlposition of sanctions specified in n C.F.Ri '107;'60; . .. The Age Discrilllination Act of 1975 (42 U.S.C, Sec. 6101 et seq.); Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. Sec. 794) and "Nondiscri.ination Based on Handicap in Federally-Assisted Programs and Activities of the Departlent of Housing and Urban DevelOpMent," 48 Fed. Reg. 22470 (May 18, 1983) and 48 Fed. Reg. 27528 (June 15, 1983) and The Architectural Barriers Act of 1968 (42 U.S.C. Sec. 4151 et seq.). II. LABOR STANDARDS The Davis-Bacon Act, as a..nded (40 U.S.C. Secs. 276a - 276a-5) as applicable,. The Contract Work Hours and Safety Standards Act (40 U.S.C. 327 et seq.) as applicable.. .See Section 21 of this contract. 111. EMPLOYMENT OPPORTUNITIES Section 3 of the Housing and Urban Developlent Act of 1968 (12 U.S.C. Sec. 1701u) . Executive Order 11246 and the regulations issued pursuant thereto (41 C.F.R. Chapter 60). Executive Orders 11625, 12432, and 12138. PAGE 1 OF 3 IV. LEAD-BASED NT ~ Lead-Based Paint Poisoning Prevention Act (42 U.S.C. Sees. 4821-4846) and implementing regulations at 24 C.F.R. Part 35. V. ENVIRONMENTAL STANDARDS AND HISTORIC PRESERVATION Section 104(f) of the Housing and Community Development Act of 1974 (42 U.S.C. Sec. 5301 et.seq.) and 24 C.F.R, Part 58. National Environmental Policy Act of 1969 (42 U.S.C. Sec. 4321 et seq.). The National Historic Preservation Act of 1966 (16 U.S.C. Sec. 470 et seq.) as amended; particularly Section 106 (16 U.S.C. Sec. 470f) , except as provided in 24 C.F.R. Sec. 58.17; Executive Order 11593, Protection and Enhancement of the Cultural Environment, May 13, 1971 (36 Fed. Reg. 8921), particularly Section 2(c); The Reservoir Salvage Act of 1960 (16 U.S.C. Sec. 469 et seq.), particularly Section 3 (16 U.S.C. Sec. 469a-l), as amended by the Archeological and Historic Preservation Act of 1974; Flood Disaster Protection Act of 1973, (42 U.S.C. Sec. 4001 et seq.) as amended, particularly Sections 102(a) and 202(a) (42 U.S.C. Sec. 4012a(a) and Section 4106(a)); Executive Order 11988, Floodplaln Management, May' 24, 1977 (42 Fed. Reg. 26951), particularly Section 2(a); Executive Order 11990, Protection of Wetlands, May 24, 1977 (42 Fed. Reg. 26961), particularly Sections 2 and 5; The Coastal Zone Management Act of 1972, (16 U.S.C. Sec. 1451 et seq.) as amended, particularly Section 307(c) and (d) (16 U.S.C. Sec. 1456(c) and (d)); The Coastal Barrier Resources Act of 1982, (16 U.S.C. Sec. 3501 et.seq.), particularly Section 307 (c) and (d) .(16 U.S.C. Sec. 3504 and 3505); The Safe Drinking Water Act of 1974, (42 U.S.C. Sec. 201, 300(f) et seq.), and (21 U.S.C. Sec. 349) as amended, particularly Section 1424(e) (42 U.S.C. Sec. 300h-303(e)); The Endangered Species Act of 1973, (16 U.S.C. Sec. 1531 et seq.) as amended, particularly Section 7 (16 U.S.C. Sec. 1536); The Wild and Scenic Rivers Act of 1968, (16 U.S.C. Sec. 1271 et seq.) as amended, particularly Section 7(b) and (c) (16 U.S.C. Sec. 1278(b)'and (c)); The Clean Air Act (42 U.S.C. Sec. 7401 et seq.) as amended, particularly Section 176(c) and (d) (42 U.S.C. Sec. 7506(c) and (d)); and, Farmland Protection Policy Act of 1981, (7 U,S.C. Sec. 4201 et.seq), particularly Section 1540 (b) and 1541 (7 U.S.C. Sec. 4201 and 4202); and 24 C.F.R. Part 51, Environmental Criteria and Standards. PAGE 2 OF 3 ~ VI. USE OF DEBARRED, SUSPENDED, OR INELIGIBLE CONTRACTORS 24 CFR Part 24, Debarment, Suspension and Ineligibility of Contractors and Grantees; Administrative Sanctions. PAGE 3 OF 3 EXHIBIT C CITY OF PARIS SCHEDULE FOR COMMITTING RENTAL REHABILITATION FUNDS Contractor shall have rental rehabilitation funds received under this contract committed to specific local projects in accordance with the timetable set out below. "Commit to specific local projects" means a legally binding agreement between Contractor and an Owner under which the Contractor agrees to provide rental rehabilitation funds to the Owner for an identifiable rehabilitation project that can reasonably be expected to start construction within 90 days after the commencement date of the agreement and the Owner agrees to start construction within that period. Upon written request by Contractor, Department may, at its sole option and in its sole discretion, alter and amend the schedule for committing rental rehabilitation funds by written letter of notification. This notification procedure shall be an exception to Section 16 of this contract requiring all amendments to be in writing and executed by both parties thereto. 1st Quarter 2nd Quarter 3rd Quarter FFY1989 FFY 1989. FFY.1989 . 4th Quarter FFY1989 January-March April-June July-September October-December $35,000.00 $70,000.00 $105,000.00 $140,000.00 1st Quarter 2nd Quarter 3rd Quarter FFY 1990 FFY 1990 FFY 1990 4th Quarter FFY 1990 January-March April-June July-September October-December $175,000.00 $210,000.00 $250,000.00 $300,000.00 PAGE 1 OF 1